AfDB Validates US$55 Million to Support Tanzania’s Capabilities in the Market

By Abdul Rahman Suagibu –

Photo Credit: Depositphotos

NEW AFRICA BUSINESS NEWS, Freetown, Sierra Leone- TANZANIA, The African Development Bank (AfDB) has signed US$ 55 million facility to revamp implementation of reforms to improve Tanzania’s economic competitiveness and private sector participation in the country’s growth.

These reforms will serve as a catalyst to lead to viable and more stronger economy, that will enhance proper living conditions of Tanzanians, with particularity to the ordinary people, destitute and needy people inclusively, women and youth.

“Tanzania’s private sector is dominated by small enterprises mostly in smallholder agriculture and small informal non-farm businesses,” stated Abdoulaye Coulibaly, the Bank’s Director of Governance and Public Financial Management Department.

“By strengthening the regulatory framework, the country’s private sector will have the required incentives to fully participate in the economy, particularly in cross sector growth-enhancing and transformational investment opportunities.”

Constraints to doing business in Tanzania include high compliance costs, lengthy pre-approval procedures, multiple and duplicate processes for business registration, loopholes in some laws and regulations applied by regulators during inspections, and high regulatory costs at the national and local levels.

Support from the Bank’s African Development Fund will bolster ongoing reforms being undertaken by the government of Tanzania that have been identified as critical for the participation of local and foreign investors across different sectors of the economy.

Tanzania’s main development challenge has been to make economic growth more inclusive and broad-based – to create employment and equal opportunities across age, geography and gender.

The African Development Bank (AfDB) has approved a $55 million facility to strengthen implementation of reforms to enhance Tanzania’s economic competitiveness and private sector participation in the country’s growth.

These critical reforms will lead to a more vibrant economy, which will improve the living conditions of Tanzanians, particularly the poor and vulnerable, and including women and youth.

“Tanzania’s private sector is dominated by small enterprises mostly in smallholder agriculture and small informal non-farm businesses,” said Abdoulaye Coulibaly, the Bank’s Director of Governance and Public Financial Management Department.

“By strengthening the regulatory framework, the country’s private sector will have the required incentives to fully participate in the economy, particularly in cross sector growth-enhancing and transformational investment opportunities.”

Challenges faced in doing business in Tanzania include high compliance costs, lengthy pre-approval procedures, multiple and duplicate processes for business registration, loopholes in some laws and regulations applied by regulators during inspections, and high regulatory costs at the national and local levels.

Assistance from the Bank’s African Development Fund will heighten ongoing reforms being undertaken by the government of Tanzania that have been highlighted as critical for the participation of local and foreign investors across diverse sectors of the economy.

Tanzania’s main development challenge has been to make economic growth more inclusive and broad-based – to create employment and equal opportunities across age, geography and gender.

For New Africa Business News Abdul Rahman Suagibu Reports,  Africa Correspondent

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