Announcement of Highlights of the World Bank Group's Activities for Tanzania in Fiscal 1974 on September 23, 1974

HOl..:D FO~ RELEASE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INrrERNATIONAL DEVELOP11F~NT ASSOCIATION WASHINGTON D.C.20433 TELEPHONE; EXECUTIVE 3-6360 1818 H STREFT. N \/V. For Publication Monday, September 23, 197h TANZANIA HIGHLIG~TS 9F WORLp BANK GROUP ACTIVITIES IN FISCAL 1974 LENDING IN EASTERN AFRICA EXCEEDS $408 MILLION Tanzania received nearly $50 million for development projects in the agri- culture sector, for electric power and to help the Tanzania Investment Bank, accord- ing to the .Annual Report of the World Bank and the International Development Association (IDA), released today . • The funds are assisting two agriclutural development operations, one for cotton development and another for the cashew nut industry. According to the report, Tanzania is one of the many countries of Eastern Africa which has to depend upon a small portfolio of connnodity exports to achieve development and growth. The report states that the rapid changes in commodity prices during the year and the high rates of inflation dominated events in the region, including Tanzania. The emphasis in agricultural and rural development projects during the year has been the increase in productivity and cash incomes of small farmers. The IDA credit of $17. 5 million to Tanzania for the Gei ta cotton develop.ment project is an example of this policy. Cotton production is largely from farmers with limited a~reage, and per capita income fa the Geita district is extremely low. This project • Note: Money figures are expressed in US dollar equivalents. I /more  .., • -2- supports a seven-year program for expansion of cotton and maize production through the use of fertilizers, insecticides and other supplies provided on credit to small- holders and farmers living in the Ujamaa villages. Other projects for which funds were provided during the year are briefly described below. As a result of a World Bank loan of $21 million, a 20% increase in cashew nut production, a 25% increase in cash incomes of small farm families, 5,000 new jobs, and the expansion of domestic cashew nut processing capacity are expected, which will help support the Cashew Nut Authority's development program for the next five years. The total cost of the project will be $30.3 million. A World Bank loan of $5 million was provided for the power sector ..:__ an amendment to the Kidatu power loan of $30 million extended in December, 1970. • An IDA crcr.lit of $6 million will provide ftmds to assist the Tanzania Investment Bank to finance specific development projects through loans and investments for pro- ductive enterprises. This is the first Bank Group operation for a development finance company financing primarily publicy-owned enterprises. Record Lending in Eastern Africa In addition to Tanzania, twelve other cotmtries in Eastern Africa -- BotS"'w~~' Burundi, Ethiopia, Kenya, Malagasy Republic, Mal.awi, Mauritius, Rwanda, SomaL:"..a, Sud~,, Zaire and Zambia -- have borrowed ftmds for development p·roj.ects during the year. The report indicates that the Group's !en.ding ia the region reached $408 million, representing 30 Bank and IDA projects. This exceeds the previous year's commitments ·by $57 million. The funds are assisting various development projects, in the power sector, agri- cultures industry:r :po:p?..ilation planning, telecommunications, transportation and url:>ani- zatron. Details are set out in t:.1re attached table . • /roore  -3- • New Field Offices During the year, according to the report, as pa;··.t of the World Bank Group's policy of trying to facilitate further the development and implementation of the Group's program of activities, the role of the field offices in the Eastern Africa region has been enlarged and new Resident Mission offices have been opened. A Resident Mission was established in Tanzania during the year at Dar es Salaam. Mr. Torgeir Finsaas is the Resident Representative. He was formerly stationed in Addis Ababa. Attachment -0- • •  I '• INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT INTli~RNATIONAL DEVELOPl\iIENT ASSOCIATION 1818 H STREET, NW, WASHINGTON D.C.20433 TELEPHONE: EXECUTIVE 3-6360 BANK LOANS AND IDA CREDITS APPROVED IN EASTERN AFRICA, FISCAL 1974 Bank !Dans InA Credits Total Number Amount -A;Cl'l'Q",lJ/. :Number Amount Number Amount Botswana 2 $ 9.5 1 3.0 3 $ 12.5 $ Burundi 1 5.0 1 5.0 Ethiopia 3 43.4 3 43.4 Kenya 3 44.4 2 33.5 5 77. 9 • f ', I Malag~sy Republic 1 7.8 1· 7.8 Malawi 2 9.5 2 9.5 Mauritius 2 15.0 1 4.0 3 19.0 Rwanda 2 10.1 2 10.1 Somalia 1 10.0 1 10.0 Sudan 3 38.7 3 38.7 Tanzania 2 26.0 2 23.5 4 49.5 Zaire 1 10.0 1 10.0 Zambia 1 ll5.0 1 115.0 10 $ 209.9 20 $ 198.5 30 $ 408.4 Note: M:>ney figures are expressed in US dollar equivalents • •