In this exclusive interview with TanzaniaInvest, Nathan Belete, World Bank Country Director for Malawi, Tanzania, Zambia, and Zimbabwe, offers an insightful discussion on the World Bank’s extensive engagement in Tanzania. Belete elaborates on the organization’s robust portfolio in the country, highlighting significant investments and technical assistance aimed at aligning with Tanzania’s development goals. The interview also explores Tanzania’s economic outlook, detailing projected GDP growth, fiscal management, and the country’s strategic efforts to enhance its tax framework to foster economic growth. Belete underscores the importance of improving the business environment, particularly for SMEs, and outlines the World Bank’s initiatives to increase access to finance and streamline business processes.
Additionally, Belete discusses Tanzania’s pivotal role in regional development, supported by the World Bank’s connectivity projects and energy infrastructure initiatives. He emphasizes the strategic importance of these efforts in fostering regional economic integration and development. Looking ahead, Belete shares the World Bank’s strategic priorities for Tanzania over the next five years, which include poverty reduction, private sector-led job creation, human capital development, expanding energy access, and promoting digital infrastructure to drive sustainable growth and shared prosperity in the country. Could you give us an overview of the World Bank’s involvement in Tanzania and its significance? The World Bank partners with the Tanzanian government to advance sound development policies and investments that align with the country’s development goals. Most of our activities involve financing projects and providing technical assistance for policy formulation and institutional capacity building. Currently, our portfolio in Tanzania is one of the largest globally, totaling approximately $9.6 billion across about 30 projects spanning various sectors. In the past two fiscal years alone, we have significantly increased our financing to Tanzania, surpassing $2 billion. “Currently, our portfolio in Tanzania is one of the largest globally, totaling approximately $9.6 billion across about 30 projects spanning various sectors.” Tanzania receives substantial funding from the World Bank due to several reasons. First, the government’s implementation of sound economic policies deserves support. Second, there are significant financing needs across various sectors in the country.
Third, Tanzania has shown positive traction in achieving developmental results with our funding. Therefore, investing in Tanzania yields a high return on investment, making it one of the largest and most successful portfolios in Africa and possibly worldwide. What metrics does the World Bank use to evaluate project performance in Tanzania? A critical metric we use is the disbursement rate, which measures the rate at which funds are utilized in projects. Typically, our projects span five years, aiming for a disbursement rate of 20% annually to achieve full utilization by the end of the project. The disbursement rate in Tanzania currently exceeds 30%, showcasing the government’s diligence in effectively utilizing its resources to achieve impactful results. “The disbursement rate in Tanzania currently exceeds 30%, showcasing the government’s diligence in effectively utilizing its resources to achieve impactful results.”