The OPEC Fund for International Development, the Organization of Petroleum Exporting Countries' development finance organisation, has inked a USD 50 million loan agreement with Tanzania to fund the 'Fourth Tanzania Poverty Reduction Project.'
The project would construct rural infrastructure in the northern Tanzanian regions of Arusha, Mwanza, Geita, and Simiyu, as well as the southern Njombe area, to increase economic possibilities and enhance access to social services for over 900,000 people.
Although Tanzania has made progress in decreasing poverty over the last decade, around 26 million people – nearly half of the entire population – live on less than USD1.90 per day.
Tanzania's government has implemented a variety of programmes to address this issue, including social safety net measures and three earlier phases of the new project (also co-financed by the OPEC Fund).
In phase four, infrastructure for education, health, water, agriculture, and transportation will be built, as well as income-generating activities in animal husbandry and vegetable produce, as well as job possibilities.
OPEC Fund Director-General Dr. Abdulhamid Alkhalifa stated, 'For many years, the OPEC Fund has been dedicated to assisting Tanzania in reducing poverty and improving socioeconomic circumstances.' The current loan will assist communities in self-help by increasing capacity, boosting food security and household income, and increasing access to social facilities. We have a good collaboration with Tanzania and expect to see additional progress on important development indicators in the coming future.'
Tanzania and the OPEC Fund have a 45-year collaboration. During this period, the organisation has contributed more than USD 370 million to 38 public sector activities (including the current project) in a variety of industries.
Transportation is one critical area receiving assistance from the OPEC Fund. The Kazilambwa-Chagu Road Upgrading Project is being funded by a recent USD26 million donation from the organisation.
The route is part of Tanzania's 1,260-kilometer east-west corridor, which connects the country's two major ports of Dar Es Salaam in the east and Kigoma in the west.
The improved connection will aid in the expansion of agricultural and tourism-related businesses, as well as commerce with neighbouring Burundi and the Democratic Republic of the Congo.
Posted on : 03 Oct,2023