The Government of Sweden and the Government of the United Republic of Tanzania have signed an Agreement under which Sweden will provide financial assistance, on a grant basis amounting to Swedish Kronor 1,350 million approximately Tanzanian shillings 187.5 billion or USD 178.3 million to enable the Government to reach the objectives of the Poverty Reduction Strategy (PRS).
The new funds will be made available as follows: SEK 650 million in 2004, and SEK 700 million in 2005. A significant part of the assistance will be in the form of direct budget support, sector programmes in the field of primary education, energy, private sector development, democracy and democratic governance. Swedish development coopearion during the 2-year period will be focused on three mutually reinforcing areas: pro-poor growth, human resource development and demoncratic development.
Sweden has been a strong supporter of the reform processes and poverty eradication efforts in Tanzania. Over the last few years, Tanzania, with the assistance of development partners including Sweden has achieved a good record of macroeconomic stability and economic growth. Despite the aforementioned, poverty is widespread and stronger efforts are needed to create higher growth and economic opportunities for the poor in order to decrease poverty and dependency on foreign aid. Sweden believes that these could be addressed through Public Service Reform and strengthening the business environment in order for the private sector to play a more active role in the development and economic growth of the country. Sweden strongly supports these efforts and is of the view that they should be sustained.
The Agreement was signed in the Ministry of Finance on 11th February, 2004 by H.E. Mr. Torvald Akesson, Ambassador of Sweden on behalf of the Swedish Government and Mr. Peniel M. Lyimo, Permanent Secretary, Ministry of Finance on behalf of the Government of the United Republic of Tanzania.
Ministry of Finance Embassy of SwedenDar es Salaam. Dar es Salaam.
11th February, 2004