Tanzania Secures Additional Funding to Boost Green and Inclusive Growth

24 July 2025
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African Development Bank (Abidjan)

The African Development Bank Group has approved supplementary financing to support Tanzania's ongoing economic reform programme. The new funding includes a $135.61 million loan from the African Development Bank and an additional $20.52 million from the African Development Fund.

This fresh injection of support marks the third and final phase of the Economic Competitiveness and Social Inclusion Programme (ECSIP), a multi-year initiative aligned with Tanzania's national development strategy. The programme focuses on three core goals: improving fiscal management, strengthening the private sector, and advancing social inclusion.

Previous phases have already delivered strong results, including:

  • Reducing the fiscal deficit to 3.3 percent of GDP in FY2023/24
  • Enhancing tax collection and public spending systems
  • Improving the business climate for MSMEs and green industries
  • Expanding social protection for women, youth, and vulnerable groups

The latest financing will deepen these reforms. It aims to raise domestic revenues, attract private investment by improving governance and the business environment, and promote climate-smart industrial growth and SME development.

Key goals include improving Tanzania's tax-to-GDP ratio, increasing access to credit for small businesses, and boosting performance on key governance and social inclusion indices such as the Ibrahim Index of African Governance.

"This financing reflects our shared commitment with the Government of Tanzania to drive economic transformation that is resilient, inclusive, and climate-smart," said Abdoulaye Coulibaly, Director of the Bank's Governance and Economic Reforms Department. "The reforms supported through ECSIP-SF will create jobs, stimulate investment, and ensure no one is left behind."

The programme also tackles Tanzania's challenges of poverty and climate vulnerability through targeted investments in people, infrastructure, and enterprises. It was developed in close partnership with the International Monetary Fund, World Bank, European Union, and other key development partners.

Read the original article on African Development Bank (AfDB).

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