African Development Fund approves US$54m Covid-19 loan to Tanzania

TANZANIA – The Board of African Development Fund (ADF) has approved a loan of US$ 54 million to Tanzania to finance the country’s response to the COVID-19 pandemic.

The loan from the African Development Bank Group’s 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.

 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.

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 which had made it one of the best performers in Eastern Africa.

“This is part of a larger, more comprehensive support package for the bank’s member countries including Tanzania”

Nnena Nwabufo – Ag Director General, ADF East Africa

The country’s growth is now 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 package, Nnenna Nwabufo, the Acting Director-General of the bank’s East Africa regional office, 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 said.

The African Development Fund (ADF) is the concessional window of the African Development Bank (AfDB) Group.

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