External supports for Tanzania dries up

Tanzanian Finance Minister, Dr Philip Mpango. Photo: Tanzanian Media.

JOHANNESBURG, SOUTH AFRICA (ADV) – The external support for Tanzania’s 2018/19 budget has dried up.

This has been revealed by the central bank’s recent official figures. According to the figures, donors released just 0.016 percent of promised funds for government projects during the year to November last year.

According to analysts, the country risks damaging its relations with key development partners these as the European Union and World Bank due to such hard-line policy positions.

“Given that the Magufuli government has already faced setbacks to implementation of projects, we note authoritarian policies and criticism by international observers could risk forfeiting more concessional loans in the future,” reads a recent report by the global credit rating agency Fitch Ratings Inc.

Tanzanian Finance Minister Dr Philip Mpango said the country was going through difficult times as a result of more and more development partners cutting down on financial aid.

He said development partners pledged Tsh2.67 trillion ($1.157 billion) in support of the government’s 2018/19 budget. But as of November 2018, they had made only 54 percent available.

“The diminishing amount of the assistance is mainly the result of stern conditions put by the donors and prolonged negotiations, plus delays in implementing some projects that also delays disbursement of funds for the following phases,” said Dr Mpango.

The Bank of Tanzania figures quoted by the minister show that donors pledged Tsh3.97 trillion ($1.69 billion) budget support in 2017/18, of which Tsh2.46 trillion ($1.042 billion) had been remitted by the end of that fiscal year, equivalent to 63 per cent of the total.

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