Tanzania - Private Sector MSME Competitiveness Project : Tanzania - Private Sector MSME Competitiveness Project

Page 1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB1448 Project Name Tanzania - Private Sector / MSME Competitiveness Project Region AFRICA Sector Micro- and SME finance (100%) Project ID P085009 Borrower(s) GOVERNMENT OF TANZANIA Implementing Agency Environment Category [ ] A [ ] B [X] C [ ] FI [ ] Date PID Prepared March 10, 2005 Estimated Date of Appraisal Authorization November 1, 2005 Estimated Date of Board Approval December 22, 2005 1. Key development issues and rationale for Bank involvement Tanzania achieved significant growth during the last five years, reaching an average growth rate of 5.2 percent, which is comparable to countries of South Asia (5.4 percent) and South East Asia (5.6 percent). 1 This performance is partly based on an increase in exports, which increased by an average of 19 percent, increases in investment in the construction industry averaging 9.6 percent and a modest resurgence in the manufacturing sector output, which grew at an annual average of 6 percent. Sound macro economic management, as well as financial, public enterprise and trade policy reforms by the Government have been the underlying factors for private and public confidence. Despite important progress in the past decade, Tanzania is amongst the w orld