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Dar es Salaam’s Rapid Bus System (file photo).
ECONOMISTS have expressed their high hopes on the 1.3tri/- soft loan released by International Monetary Fund (IMF) to Tanzania, saying the funds will uplift the living standard of those pulled down below poverty line by the Covid-19 pandemic.
The funding was meant to cushion the social impact caused by Covid-19 that ravaged various sectors in the country, primarily education, health, water and tourism.
And, the government estimated that over one million people have been pulled below the poverty line in the last one year due to coronavirus pandemic.
The Vice-President Dr Philip Mpango said in Dodoma on Sunday during the launch of the the Tanzania Covid-19 Social- Economic Recovery and Response Plan (TCRP) that the poverty figure has increased since most families lost their breadwinners, while others businesses collapsed.
“What is shocking, over one million people have entered into poverty due to this pandemic… ” DrMpango said, adding the IMF facility, equals to one month of government tax collection, may assist to reverse the trend.
Reacting to that effect, several experts said the government programme to utilisation of the IMF facility is set to usher in fresh jobs in short and medium-terms, thus to jump-start families that had plunged into poverty.
Dr Hildebrand Shayo, an economist-cum-investment banker, said the Bretton Woods institution’s facility directed to the projects that benefit masses-especially youth, women and children-may be translated to sustainable growth.
He, however, said strict measures will be required as stated by President Samia Suluhu Hassan to ensure value for money in procuring of equipment and execution of projects.
“Translating this amount into sustained growth will not be easy if strict measures aren’t taken against those who will misappropriate the funds when disbursed to specific sectors,” Dr Shayo said told the ‘Daily News’ on Monday, adding:
“… Spending 1.3tri/- as outlined by the government to strengthen vocation training colleges or to be used for projects that would benefit the youth, women and children has to go hand in hand with measures for proper utilisation of the funds which will results realisation of value for money.”
On top of that, the economist said the IMF concessional loan came to Tanzania at the time when the economy is on course with upward trajectory despite effects caused by Covid-19 pandemic.
“No doubt, that is why President Samia has cautioned those who will be responsible to administer the project to be aware of her true colour especially when it is about public money,” Dr Shayo said.
At an event to launch the 1.3tri/- robust development programme meant to transform the nation in different sectors mainly in education, health, water and tourism President Samia said called on proper monitoring of the funds and projects, saying “value for money” must be seen in each and every scheme.
Vertex International Securities, Advisory and Capital Markets Manager Ahmed Nganya said Covid-19 relief fund will boost the intended areas; delivery of social services; education, water and sanitation and medical equipment.
“However,” Mr Nganya, an economist, said “We think strengthening of those areas will create a positive momentum for employment creation and productivity in the medium term.”
A political affairs commentator Vasco Kiswaga said the support that the country has been receiving from financial institutions, is a clear indication of the trust that Tanzanians have earned in the eyes of the international community.
“And, there is no doubt that the money will be spent according to the intended purpose, our President has appointed people who can deliver her expectations to the maximum possible,” he said.
The government today will announce a detailed blueprint on the planned construction of classrooms in each region funded by the IMF.
The government-led programme will be implemented in nine-month and aimed to kick-start the country’s economy following the effect of Covid-19 that shattered most developing programmes.
Tanzania Daily News
