The Government of the United Republic of Tanzania and the Government of Sweden have today signed two Agreements for financing assistance under the new Agreement on Development Cooperation (Framework Agreement) amounting to SEK 3.8 billion (equivalent to Tanzania shillings 695.3 billion) for the period 2006-2010; and the second Agreement on General Budget Support amounting to SEK 1.2 billion (Tanzania shillings 219.6 billion) for the period 2006-2008.
Under the first Agreement development cooperation will focus on support to the implementation of the National Strategy for Growth and Reduction of Poverty, popularly known as MKUKUTA. The main areas of cooperation will cover education and research, energy, trade related private sector development, democratic development and human rights, and public sector reforms.
The second Agreement is for General Budget Support (GBS) amounting to SEK 1.2 billion (Tshs. 219.6 billion) covering the period from 2006 to 2008. In providing GBS, the Government of Sweden adheres to the principles laid down in the Joint Assistance Strategy for Tanzania (JAST), whereby the GBS is the most preferred aid delivery modality. The GBS contributes to reduction of transaction costs and aims at strengthening Tanzania’s capacity by making use of existing structures and systems. The signing of this Agreement, will facilitate disbursement of the first installment of SEK 300 million (equivalent to Tshs. 54.9 billion) for this financial year 2006/07.
The Agreements were signed at the Ministry of Finance by the Permanent Secretary to the Treasury, Mr. Gray S. Mgonja, and the Ambassador of Sweden to Tanzania, H.E. Torvald Åkesson, both representing their respective Governments.
Ministry of FinanceEmbassy of Sweden