The World Bank has approved a $450 million loan to Tanzania, the release of the first tranche of funds that were frozen last year. World Bank financing to Tanzania was halted due to concerns about several controversial policy issues.The controversial policies included passing a law by Tanzania which made it illegal to question official statistics and expelling pregnant girls from public schools. On the issue of the right to question the government statistics, the government amended the law in June to remove the threat of jail. But changes to the rules on teenage pregnancy are yet to be announced.According to a statement issued by the World Bank, International Development Assistance (IDA)to Tanzania will cover a poverty- reduction programme that will help around five million Tanzanians.
Tanzanian government has been trying hard to unlock $1.7 billion in funding from the bank that was frozen in 2018. In July this year, Tanzania’s statistics agency agreed to review its economic growth figure for 2018 after the World Bank came up with a significantly lower one. The updated figures are yet to be released.
Tanzania relies heavily on the World Bank, its biggest external lender. The support is crucial to raise the country’s human capital index, which is still very low at 0.40. Bella Bird, the World Bank’s country director for Tanzania said that “We will continue to work with the government and engage with citizens and other stakeholders on the complex set of development issues facing the country and its people.”
