Tanzania and Japan signed the Exchange of Notes (agreements) for a loan to support the co-financing for the “Business Environment for Jobs Development Policy Operation (DPO)’’ worth 6 billion Japanese Yen (116.4bn/-).
The Permanent Secretary (PS) in the Ministry of Finance and Planning, Dr Servacius Likwelile, said at the signing ceremony in Dar es Salaam that funds are aimed at supporting implementation of the government’s programme of increasing job creation for the private sector.
This is deemed possible by reducing the overall cost of doing business and creating an enabling environment for selected labour-intensive industries.
Dr Likwelile pointed out that the programme would support the three pillars, particularly in making the regulatory environment more business friendly, improving the functioning of factor markets for labour, land and capital and establishing enabling environment for competitive, job creating industries in particular for agribusiness and tourism.
He noted that the first agreement would help in completing the government’s budget for 2016/17 while the second agreement would cover technical issues, including amendments of the agreement signed by the two countries in October 1966 when the Far-East country issued its first loan to Tanzania.
“The government and people of the United Republic of Tanzania value your government’s continued support to our development efforts.
At this juncture; let me assure you that the assistance provided under the Exchange of Notes and loan agreement will be prudently used to achieve the intended purpose,” Dr Likwelile said.
For his part, Japan Ambassador Mr Masaharu Yoshida stated that the programme was the first of three development policy operations.
According to him, through the programme, Japan will support Tanzania’s effort to boost job creation, especially in the private sector, by reducing the cost of doing business and creating a better industrial environment.
“The government of Japan is fully committed to support President John Magufuli and his government’s clear vision to nurture labour-intensive industries and attract foreign investors by creating business friendly environment,” he stressed.
The envoy added that the cooperation between the two countries would enhance economic and social growth in Tanzania, in addition to developing and strengthening existing ties.
Japan’s loan offer and pledge for stronger economic ties came only a day after the United States Embassy in Dar es Salaam issued a statement to the effect that the Board of Directors of the Millenium Challenge Corporation (MCC) has decided to cease all activities related to the Second Compact with Tanzania.
The MCC reportedly deferred a vote on the re-selection of Tanzania for compact eligibility, citing the nullification of election results in Tanzania and the Cybercrimes Act, claiming that the law was used to limit freedom of expression and association.