African Development Fund on Monday approved a $50.7 million (approximately Sh5.5 billion) to Tanzania, to finance the nation’s response to the Covid-19 pandemic.
The government, led by President John Pombe Magufuli is planning on building economic resilience, while mitigating the socio-economic and health impacts of the pandemic, particularly on local businesses, vulnerable households and the country’s health system.
The loan from African Development Bank Group (AfDB) was approved by the ADF Board of Directors and is meant to offer budget Support.
According to a statement by the Bank, the funds will support the Government's $109 million (approximately Sh12 billion) national Covid-19 response plan, which is jointly supported by the country’s other development partners.
The pandemic has put increased pressure on Tanzania’s health facilities, social protection systems and has dampened the country’s projected growth of over 6.2 per cent.
Growth is now projected to decline from the pre-Covid projections of 6.4 per cent to between 3.6 and 2.6 per cent.
Nnenna Nwabufo, the Acting Director-General of the AfDB ’s East Africa regional office, said the operation was part of a larger, more comprehensive support package for the Bank’s regional member countries, including Tanzania.
“The evolution of Covid-19 and changing containment measures remain dynamic and unpredictable; the medium and longer-term impacts of the crisis are yet to be fully understood," Nwabufo said.
"The African Development Bank Group is stepping up its coordination with governments, as well as with other development partners to adapt and strengthen its monitoring and response to the pandemic."
