web_tanzania_shutterstock_274634321.jpg

The city of Dar es Saleem, Tanzania at night

The bank announced the funds as part of its 2016-2020 strategies for the countries. Tanzania will see over $1.1bn in concessional financing, while Seychelle’s $39m will be complemented with trust fund resources, climate funds and money from co-financing mechanisms.

The AfDB said its strategy over the next five years in Tanzania will work to support economic transformation in the country towards inclusive and green growth.

The strategy will have two main pillars: infrastructure development in energy and transport and stronger public sector governance and accountability to ensure value for money in public spending.

In addition to the $1.1bn, the bank said further resources will be mobilised from trust funds, renewable energy financing and co-financing with other partners. It will use financing instruments, such as local currency bonds and guarantees, to try and de-risk lending to sectors like agriculture.

Smallholder agricultural firms, agri-business and related value chains will also benefit from investment interventions from the bank’s private sector window to improve their access to finance.

The AfDB’s strategy for the Seychelles will also focus on two main pillars, which together aim to foster a more diversified economy with greater resilience to external shocks and job creation for young people.

This will involve enhancing energy infrastructure and supporting policy reforms to stimulate private sector activity and economic diversification, away from tourism and fisheries, on which its economy is reliant.

Yesterday, the bank also reiterated its support for Zambia, particularly in the energy sector, to help the country tackle its economic challenges.

The country, Africa’s second-largest producer of copper, is facing a crippling power crisis that has reduced production by copper mining firms, leading to job losses and rapid currency depreciation.