African Development Fund on Monday approved a $50.7 million loan to Tanzania, to help finance its Covid-19 response.
President Magufuli’s administration is planning to build economic resilience as it mitigates the socio-economic and health impacts of the pandemic, mostly on local businesses, the health sector, and the vulnerable households.
The acquisition from the African Development Bank Group (AFDB) was approved by the international lender’s board of directors and is meant to offer budget support.
In a statement, the Bank said the funds will support the government’s $109 million national Covid-19 plan, which is jointly backed by the country’s other development partners.
Covid-19 pandemic has put increased pressure on the country’s health facilities, social protection systems as well as dampened the country’s projected economic growth of over 6.2 percent.
The economic growth is not expected to decline from the pre-Covid projection of 6.4 percent to between 3.6 and 2.6 percent.
Acting Director-General of the AFDB East Africa regional office, Nnenna Nwabufo said the operation was part of a bigger, more comprehensive support package for the lender’s regional member countries including Tanzania.
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“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.”
