Coronavirus: Tanzania seeks funds from international financial institutions to mitigate effects

11 Juin 2020

Dar es Salaam, Tanzania, June 11 (Infosplusgabon) - The government of Tanzania is currently holding talks with various international financial institutions to secure funds to enable it mitigate the challenges of the effects of Covid-19 pandemic.

Tanzania’s Minister for Finance and Planning, Philip Mpango, told the National Assembly in the capital, Dodoma, on Thursday that the government has already received a loan US$ 14.3 million through the Catastrophe Containment Relief Trust (CCRT). The loan, approved by the International Monetary Fund (IMF), could increase to US$ 25.7 million.

Mpango said the government is also in talks with the World Bank through the Pandemic Emergency Financing Facility amounting to US$3.98 million, and the Economic Cooperation Development Fund through the Korea Exim Bank (US$ 501,169) and budget support from the European Union through EU window Covid-19 Response Package (27 million euros) and BADEA (US$ 1.7 million).

Tanzania is also in talks with the IMF to secure a loan under the Rapid Credit Facility scheme whereby the government can borrow up to US$ 198.9 million special drawing rights, said the finance minister when presenting his budget speech for the 2020/21 financial year.

He said the African Development Bank (AfDB) has also promised to provide a US$ 50 million concessional loan which will be planned according to priorities.

According to the minister, the economic analysis conducted over the period, January to April 2020, shows that unlike most countries whose economies have suffered a setback, the impact of Covid-19 to the Tanzania economy is minimal.

He attributed the relief to the government decision to encourage Tanzanians to continue working hard while adhering to advice by experts on Covid-19.

He said the assessment shows that there are areas where the effects of Covid-19 were marginally experienced or not experienced at all, including the gross domestic revenue which increased by 8.2 percent for the period of January to April 2020.

FIN/ INFOSPLUSGABON/BOL/GABON2020

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