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World Bank grants Tanzania $232m credit

Gardian
April 26, 2007
By Nairobi

The World Bank has approved a total $232 million in credit to Tanzania to support the government`s strategy for economic growth and poverty reduction.

The bank said that $190 million will go jointly to mainland Tanzania and the semi-autonomous archipelago of Zanzibar, to boost the power sector, improve education, reduce child and maternal deaths and increase access to clean water. The rest will go to Zanzibar.

``The credit is expected to help the government sustain growth around 6 to 8 percent annually which is projected to result in significant reduction of poverty,`` the bank said in a statement late on Tuesday.

``It will also help the government ... increase school enrolment and literacy rates, reduce child and maternal mortality, increase access to safe water, and strengthen the sustainability of development efforts.``

The government projects the east African country`s economy to grow by between 7 and 8 percent this year, up from 5.9 percent in 2006, when a drought-induced electricity shortage led to massive power cuts that slowed economic activity.

The World Bank said some of the money will go to supporting the power sector.

The additional $42 million Zanzibar will receive will be used to help improve basic education.

``This will be ... through construction of secondary schools, laboratories and facilities for teacher training, and making text books in core subjects available to all primary and secondary schools,`` the bank said.

The amount is part of $48.5 million needed to boost education in the next six years beginning 2007.The government will contribute the remaining $6.5 million. Tanzania?s 2006/07 budget comprises 39 percent funding from foreign sources.


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