THE World Bank Group has approved a new country partnership framework (CPF) for Tanzania to consolidate the country’s status as a lower-middle-income economy.

Nathan Belete, the World Bank country director also overseeing other countries in the sub-region, said in a statement yesterday that the strategy covering 2025–2029 embodies the One-WBG approach.

It is intended to integrate the strengths of the International Development Association (IDA) lending and grant sphere, the International Finance Corporation (IFC) which focuses on the private sector, and the Multilateral Investment Guarantee Agency (MIGA) for strategic lending operations.

He said the One WBG approach takes up lower middle income status while enhancing human development and supporting global poverty eradication efforts.

Key priorities of the framework include advancing the country’s human development agenda through transformative interventions in education, healthcare, water, sanitation, and hygiene (WASH), as well as shock-responsive social protection programmes, he explained.

These initiatives build on the Tanzanian government’s ongoing efforts, the statement affirmed, elaborating that the framework is expected to create an enabling environment for private sector-led growth by reinforcing reforms that enhance the business climate, investing in infrastructure and modernising productive sectors.

Working to leverage Tanzania’s strategic geographic position, the framework enabled the government to foster inclusive growth domestically and across the sub-region, he further said.

Climate resilience and economic stability are also critical CPF components, especially relating to climate change adaptation, mitigation strategies and strengthening overall economic resilience, the statement indicated.

The framework prioritises cross-cutting themes of empowering women and youth, enhancing government effectiveness via transparent and accountable institutions, it specified.

Tanzania’s recent policy strides in education and vocational training shows the transformative impact on human development and poverty reduction, it said, affirming  that the framework reflects extensive consultations and aligns with the third five-year development plan and its Zanzibar version.

The plan’s emphasis on private sector-led growth aligns with the IFC's strategy for creating markets, aimed at fostering conditions for inclusive development, the director noted.

Mary Porter Peschka, the IFC regional director for Eastern Africa, underscored the critical role of private sector participation in Tanzania’s economic growth and job creation.

She emphasised IFC’s commitment to supporting inclusive finance, agribusiness, manufacturing and sustainable infrastructure, while Șebnem Erol Madan, the MIGA director of economics and sustainability, said increased investor interest in Tanzania is supported by recent government reforms.

MIGA is promoting financial inclusion and climate finance, leveraging the World Bank Group’s guarantee platform to mobilise private capital in sectors like renewable energy and digital technology, she explained.

The framework builds on the success of the 2018–2022 framework, which facilitated significant improvements in water access, secondary education and electricity provision across Tanzania, she said.

Notable achievements of the earlier phase include improved school attendance, expanded vocational education, and increased rural electrification,” she stated, affirming that IFC’s investment portfolio in Tanzania exceeds $400m, focusing on financial institutions, agribusiness and real estate, with additional advisory support.

“MIGA’s recent guarantees in the mobile money and banking sectors underscore its expanding role in Tanzania’s development, with a robust pipeline in the renewable energy and digital sectors,” the director added.