WASHINGTON, June 13, 2022—At least seven million residents in Tanzania’s secondary cities will benefit from strengthened urban management and access to better infrastructure and services through a new International Development Association (IDA*) credit of $278 million approved today by the World Bank.
“Tanzanian cities are increasingly at risk of climate change, particularly due to projected changes in rainfall patterns which, when coupled with poor development controls and environmental degradation, will increase flooding,” said Mara Warwick, World Bank Country Director for Tanzania, Malawi, Zambia, and Zimbabwe. “This investment directly responds to these vulnerabilities by including climate change adaptation as a cross-cutting issue in its design. It also supports connectivity and access to markets through road infrastructure, bus stop improvements and public space upgrades to reduce travel times and costs, and safety improvements.”
Tanzania’s urban population is expected to increase from 34% in 2018 to 49% by 2040, with the highest growth rates occurring in the country’s secondary and tertiary cities. “Urban areas are critical for Tanzania’s economy and for poverty reduction, however institutional systems and infrastructure have not kept pace with rapid urbanization,” added Ms. Warwick.
The Tanzania Cities Transforming Infrastructure and Competitiveness project (TACTIC) will address these gaps by providing support to key areas of urban management in participating cities, including municipal finance, urban planning, resilience and green development, improved service delivery, and local economic development in addition to infrastructure investments. Through these activities, TACTIC is expected to directly benefit a total of over seven million people through strengthened urban management performance, and among them five million people through improved basic infrastructure and services. This will include the urban poor and vulnerable population who will benefit from increased access to urban infrastructure, basic services, economic opportunities, and reduced risks from climate impacts. At the national level, the project will also strengthen institutional capacity of central ministries.
“Rapid urbanization and increased population density have contributed to urban sprawl and low-density development in Tanzania’s cities, with poor connectivity between people, industries, and markets. The risk of climate-related disasters also runs high,” said David Mason, World Bank Urban Specialist and Task Team Leader. “TACTIC will contribute to harnessing urbanization to promote economic growth and job creation; strengthening public accountability and financial efficiency in delivering services; and improving the efficiency and attractiveness of public investments to crowd-in private investments.”
TACTIC is coordinating with other projects funded by the government and various development partners including the European Union, the Danish International Development Agency, the Nordic Development Fund, the French Development Agency, the Credit Institute for Reconstruction, the German Corporation for International Development, and the United Nations Human Settlement Program. It has benefited from technical assistance activities funded by the Foreign Commonwealth and Development Office of the United Kingdom.
* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 74 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.3 billion people who live in IDA countries. Since 1960, IDA has provided $458 billion to 114 countries. Annual commitments have averaged about $29 billion over the last three years (FY19-FY21), with about 70 percent going to Africa. Learn more online: IDA.worldbank.org. #IDAworks