WORLD BANK SUPPORTS LAND OWNERSHIP REFORM IN TANZANIA

DAR ES SALAAM, January 17, 2014 – Today the Government of United Republic of Tanzania and the World Bank signed the Financial Agreement for additional financing to the Private Sector Competitiveness Project (PSCP) for a total amount of US$60.2 million.

The Private Sector Competitiveness Project (PSCP) supports the implementation of Tanzania’s program to develop the private sector by lowering the cost of doing business. Today’s funds support the scaling up of two components: strengthening the country’s business environment and improving access to financial services.

The US$60.2 million PSCP is financed by a credit from the World Bank’s International Development Association (IDA)*.

“During the past decade, Tanzania has experienced high rates of economic growth, due to economic reforms, sound macroeconomic policies, and an expanding public sector,” said Philippe Dongier, World Bank Country Director for Tanzania. “The PSCP’s focus on securing land ownership and improving access to finance will facilitate increased flows of private investment into the country’s industries, light manufacturing firms and farms, while boosting shared growth and jobs and improving the quality of life for Tanzanians.”

The PSCP supports activities designed to improve land registration, land use planning and regularization of tenure rights. The project has already piloted a faster land demarcation and registration approach to replace the traditional high cost registration, (which is about 10 times more expensive.) Today’s project will help to further advance land administration reform, complete business registration reform, and help implement the Government’s Big Results Now initiative to speed up delivery of priority programs such as agriculture, education, energy, transport and water.

Already PSCP activities have helped 166,000 households participate in microfinance, benefiting more than one million people. Another 35,000 people have benefitted by participating in Village Savings and Loan Associations and Village Community Banks. The additional financing aims to build on this success by strengthening the legal and regulatory framework for the financial sector, improving the capacity of financial regulators, and supporting the development of products such as finance leasing and savings bonds.