Tanzania will receive a $100 million loan from the World Bank’s International Development Association (IDA) to help improve governance in the east African country.
Businesses have long complained corruption is one of the main reasons for the high cost of doing business in Tanzania. The loan would be aimed at increasing transparency and accountability in governance and improving public financial management, said Philippe Dongier, the World Bank’s country director for Tanzania.
The project will also help promote budget credibility and execution through better cash management, public investment management and procurement to improve health, education and water supply services to the poor, the Bank said.
Tanzania is estimated to have more than 53.2 trillion cubic feet of gas reserves off its southern coast, but its energy sector has long been dogged by allegations of graft and other problems. Graft claims led to the suspension of budget support by Western donors in October.
