IMF funds to relieve 40,700 poor households

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IMF funds to relieve 40,700 poor households
IMF funds to relieve 40,700 poor households

Africa-PressTanzania. THE Tanzania Social Action Fund (TASAF) revealed yesterday that it will spend 5.5bn/- Covid-19 relief funds from the International Monetary Fund (IMF) to support over 40,700 poor households to mitigate economic effects caused by the pandemic.

Targeted poor households include those residing in all councils, towns and cities taking into account that the areas have been hit most by the effects of the virus.

TASAF Executive Director Ladislaus Mwamanga announced the plan during a press conference held in Dar es Salaam, adding that the pandemic paralysed many economic activities.

Mr Mwamanga said due to the pandemic, the beneficiaries could not meet with experts to exchange ideas and gain new skills and knowledge related to proper nutrition, farming, livestock keeping and entrepreneurship, thus, affecting their incomes. Thus, the majority of the beneficiaries from poor households were forced back to extreme poverty, as their incomes were badly affected after losing their resources such as livestock of which they sold off to meet their families’ upkeep.

“To rescue the situation the government will put in place various measures to help 40,740 poor households including raising funds and providing additional grants to offset Covid-19 effects,” he pointed out.

“The 5.5bn/- allocation will be used for the provision of cash grants and implementation of community works programmes for the beneficiaries’ households,” said Mr Mwamanga.

He further elaborated that the cash grants and wages obtained through taking part in the projects will boost the beneficiaries’ incomes.

According to him, the beneficiaries will take part in the community projects and each household will obtain wages amounting to 135,000/- for the recovery and strengthening their income generating activities which were affected by Covid-19 pandemic.

He went on explaining that the 5.5bn/- allocation is part of the 1.3tri/- arrangement secured as a concessional loan from the International Monetary Fund’s (IMF) Rapid Credit Facility (RCF) and Rapid Financing Instrument (RFI), a reflection of the government’s intention of valuing the lives and wellbeing of its people especially those living in abject poverty.

Mr Mwamanga, however, noted that through executing the projects, the beneficiaries will be able to increase access to food and improve delivery of social services like health, water, education and environmental management.

“For the duration of the expenditure has been identified, TASAF will ensure the projects kick start immediately after release of the funds and used as per the target goals. “Proper supervision will be carried out to ensure the projects are implemented to the required standards and reflect the value for money,” stated Mr Mwamanga.

He disclosed that Phase II of Productive Social Safety Net (PSSN II) is currently being implemented in 184 councils across the country with over 1.4 million poor households equivalent to 10 million people benefiting from the programme.

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