Exchange of Notes concerning Grant Aid to the United Republic of Tanzania for Poverty Reduction Strategy

March 3, 2009
Japanese

The Government of Japan has decided to extend grant aid of 520 million yen (breakdown: for the agricultural sector development, 320 million yen; for the public financial management reform, 50 million yen; for the local government development, 100 million yen; and for the second phase of Local Government Reform Programme, 50 million yen) to the United Republic of Tanzania to support the county’s poverty reduction strategy. Notes to this effect were exchanged on March 3 (Tue) in Dar es Salaam between Mr. Hiroshi Nakagawa, Ambassador of Japan to Tanzania, and Dr. Ramadhani M. Khijjah, Permanent Secretary, Ministry of Finance and Economic Affairs.
Tanzania, one of the most politically-stable countries in sub-Saharan Africa, has implemented sound macro-economic policies, and its macro-economy has remained healthy since the late 1990s. In addition, with a view to achieving the goals of the Second Poverty Reduction Strategy, the country has formulated mid- and long-term strategies and programs for each sector including agriculture, infrastructure, education, and health, and has implemented them through money by the common funds. Tanzania also has a well-functioning poverty-monitoring system to monitor the progress of the poverty reduction strategy as a whole and has implemented four major reform programs concerning the national administration (reforms of public financial management, local government, public service, and judiciary).
In its Country Assistance Program for Tanzania issued in June 2008, Japan has put priority on agriculture, infrastructure, and strengthening of public administrative and financial capacity. Of these sectors, this grant aid is to provide financial support for agriculture and strengthening of public administrative and financial capacity.
Japan announced its commitments to strengthen assistance to Africa last May during the Fourth Tokyo International Conference on African Development (TICAD IV). The grant aid contributes to realizing these commitments. It is expected that this grant aid, complementing Japan’s project-based assistance for these sectors, will contribute to poverty reduction in Tanzania.

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