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Tanzania has agreed a new 1.7 billion US dollar financing deal with the World Bank to fund various projects during fiscal year 2019/20, its finance ministry said on Saturday.
The agreement, which is comprised of low-interest loans and grants, includes a $400 million loan for education and $300 million for a poverty reduction programme.
“Part of the financing will also be used to fund various infrastructure projects, such as roads, water, information and communication technology...and energy,” the ministry said in the statement.
The East African country plans to raise its total spending in 2019-20 (July-June) slightly $14.16 billion, with the funds going towards improving roads, railways and rural electricity supplies.
The financing deal was reached during talks between Tanzania’s Finance and Planning Minister Philip Mpango and the World Bank Vice President for Africa Hafez Ghalem in Washington.
The spending is up from 32.48 trillion shillings in the fiscal year that will end in June, reports Reuters.
Loans and grants are a big source of foreign currency for the second largest economic country in the East African Community.