Tanzania gets USD 37.7m as cushion against economic crunch

The government has received USD 37.7m from the US as a financial boost to the country's economic stimulus package.

A statement availed to this paper on Monday said the US Deputy Secretary of the Treasury had announced the funding during a meeting on Monday with President Jakaya Kikwete.

“Times are tough worldwide since the start of the global financial crisis. While the US has been hit hard, the American people understand that effects have been especially great in Tanzania,” said the statement.

It said, “To help cushion the impact, President Obama and the United States Congress have authorized a USD 37.7 million Financial Crisis Initiative to directly benefit Tanzania’s poor.

The assistance was formally announced by US Deputy Secretary of the Treasury Neal S. Wolin during his meeting with President Kikwete at State House on Monday.”

The World Food Program (WFP) is teaming-up with the United States Agency for International Development (USAID) to manage the effort, underlining the United States’ commitment to partner with the UN and other donors to support Tanzania’s development.

"The US is pleased to partner with committed African countries such as Tanzania to help them emerge from the global financial crisis and flourish in the years ahead," Deputy Secretary Wolin said.

"From spurring country-led agricultural development to offering technical assistance, we look forward to strengthening and deepening our partnership with Tanzania."

The World Bank and IMF project that the global financial crisis will reduce Tanzania’s economic growth from over 7 percent in 2008 to 4-5percent in 2009.

It said with over 40,000 Tanzanian jobs lost already, the poor are invariably hardest hit by economic shocks.

The statement said further that for this reason, the USD37.7 million stimulus package targets the mwananchi and complements recent Tanzanian initiatives to stimulate the rural economy and increase food production.

“Children are most vulnerable to food insecurity. Proper nutrition in schools helps children perform better in school and removes a heavy burden on families stretched by the rising costs of food,” it said.

The statement stressed further that the financial Crisis Assistance enables WFP to give two-meals a day for a year to 400,000 children in 600 primary schools in drought-prone districts of Arusha, Manyara, Dodoma and Singida regions.

It said further that in pastoral communities, the program would support earth dams for livestock, feedlots for value-added fattening of cattle, and better access to markets.

The statement said in addition to the USD37.7 million Financial Crisis Initiative, USAID will partner with local banks to provide up to USD10 million in credit and financing options for agribusinesses, including over 1,000 Small and Micro-enterprises and households through micro-finance over a five year period to stimulate production and improve food security.

Tanzania is one of eight countries receiving Global Financial Crisis funds of more than USD255 million. Other African countries receiving this one-time assistance are Ghana, Liberia and Zambia.

SOURCE: THE GUARDIAN