The Board of Directors of the African Development Fund (ADF) has approved a loan of UA 36 million ($50.7 million) for Tanzania, to finance the nation’s response to the COVID-19 pandemic. The loan from the AfDB COVID-19 Response Facility (CRF) will support the government of Tanzania’s $109 million national COVID-19 response plan, which is jointly supported by the country’s other development partners.
According to a statement, the plan is aimed at building economic resilience, while mitigating the socio-economic and health impacts of the COVID-19 pandemic, particularly on local businesses, vulnerable households and the country’s health system.
It noted that the pandemic has put increased pressure on Tanzania’s health facilities, social protection systems and has dampened the country’s projected growth of over 6.2 per cent – the average over the last five years, and which had made it the one of the best performers in Eastern Africa.
The country’s growth was projected to decline from the pre-COVID projections of 6.4 per cent to between 3.6 per cent and 2.6 per cent.
Commenting on the operation, the Acting Director-General of the Bank’s East Africa regional office, Nnenna Nwabufo, said said it was part of a larger, more comprehensive support package for the Bank’s regional member countries, including Tanzania.
“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. 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,” Nwabufo added.