April 13, 2019 / 3:59 PM / 6 days ago

Tanzania agrees $1.7 bln financing deal with World Bank

International Monetary Fund logo is seen outside the headquarters building during the IMF/World Bank spring meeting in Washington. REUTERS/Yuri Gripas

DAR ES SALAAM (Reuters) - Tanzania has agreed a new $1.7 billion 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 $400m loan for education and $300m 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.

Tanzania plans to raise its total spending in 2019-20 (July-June) slightly to 33.11 trillion shillings ($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.

Loans and grants are a big source of foreign currency for Tanzania.

Reporting by Fumbuka Ng'wanakilala; Editing by Hereward Holland

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