As of August 2023, the World Bank portfolio in Tanzania amounts to $8.3 billion, comprised of 23 national projects ($7.26 billion commitments) and 6 regional projects ($1.05 billion commitments). Key sectors in the national portfolio are transport (22.3%), education (20.3%), water (12.1%); urban resilience (10.7%), energy (9.0%), and social protection (9.0%). Other projects cover governance, digital development, human development, and poverty. Tanzania's regional projects are focused on agriculture, energy, education, and poverty and equity.
A new Country Partnership Framework (CPF) is to be developed this year in partnership with the Government of Tanzania and is currently anticipated to be completed in May 2024. The completed 2018-2022 CPF aligned with the priorities identified in Tanzania’s Second Five-Year Development Plan and Zanzibar’s Third Strategy for Growth and Reduction of Poverty, supporting three focus areas: (1) enhancing productivity and accelerating equitable and sustainable growth, (2) boosting human capital and social inclusion, and (3) modernizing and improving the efficiency of public institutions.
After two decades of sustained growth, Tanzania reached an important milestone in July 2020, when it formally graduated from low-income to lower-middle-income country status. This achievement reflects sustained macroeconomic stability–in addition to the country’s rich natural endowments and strategic geographic position−that has supported growth. The World Bank has been a key development partner for Tanzania during this time, supporting outcomes in a number of critical areas, including transport, education, health, social protection, energy, water, urban resilience, housing, ICT, and governance. Aiming for a growth path that is more inclusive and sustainable, a key focus has been on addressing the rural-urban divide and boosting the enablers of poverty reduction. Tanzania’s larger development agenda remains unfinished, however, and as the country looks to transition to middle-income country status, the focus will remain on the quality of its growth and ensuring that Tanzania is a country with well-developed human capital, an ample supply of high-quality livelihood opportunities, and broad-based gains in living standards.
International Finance Corporation (IFC)
IFC operation in Tanzania is guided by the WBG CPF, the Government of Tanzania’s Vision 2025, and IFC’s Tanzania repositioning strategy approved in February 2022, which focuses on developing the agricultural sector (with a focus on improving aggregation, warehousing, and logistics infrastructure to boost agriculture), deepening financial services, supporting infrastructure development in power and telecommunications and, on a merit basis, investing in sustainable mining. Additionally, IFC investment is gender-inclusive and climate-sustainable.
IFC’s committed portfolio in the country is well-diversified, covering all major sectors with a total of $644.5 million. IFC management has approved a $10 million gender program as a follow-on to the successfully completed Finance2equal gender program and CIDA-funded Business Enabling Environment Support Program. The IFC advisory portfolio is over $10 million. IFC has also worked with the Gates Foundation-funded livestock sector development program, which is now completed.
Multilateral Investment Guarantee Agency (MIGA)
A MIGA guarantee of $22.6 million supported agricultural sustainability in Tanzania. The guarantee covered a reinsurance contract to the Overseas Private Investment Corporation in support of private investments (up to $60 million) in Silverlands Tanzania Limited to purchase the assets and expand two existing agribusinesses. This project expanded Tanzanian land under cultivation through the development of further irrigation capacity and improvement of management processes and skills while increasing livestock production through more efficient processes and technology. The guarantee expired end-January 2023.
MIGA will aim to use its new Trade Finance Guarantee (TFG) to facilitate trade and economic activities in the country as progress is made on the African Continental Free Trade Agreement. The TFG would cover the risk of non-payment by SOE Banks to IFC with respect to IFC guarantees issued under the Global Trade Finance Program. In addition, MIGA will leverage deeper collaboration across the WBG to de-risk foreign investment, paying close attention to projects that support climate finance and boost job creation. MIGA is also looking to support potential investment in Rift Valley Energy and Airtel Mobile Money Tanzania.
Analytics and Knowledge Products
The Bank continues to use analytics to guide project operations, along with hands-on technical assistance, impact evaluations, policy notes, and broader reports to inform lending and policy dialogue. The longstanding Tanzania Economic Update (TEU) series has focused on a range of topics, including the impact of investing in water supply, sanitation, and hygiene; the importance of investing in girls and human capital development; financial inclusion; agriculture for inclusive growth and poverty reduction; transforming tourism; addressing the impacts of COVID-19, and expanding women’s access to assets and economic opportunities. A Country Climate and Development Report is among the analytical works currently under preparation for this fiscal year.
Last Updated: Sep 14, 2023