Dar es Salaam – The African Development Bank (AfDB) says it has approved 1.1 billion dollars in loans to Tanzania to be paid out over five years to fund infrastructure projects and improve public sector governance.
The loans would support “transport and energy to promote domestic and regional transport connectivity and improve access to reliable, affordable and sustainable electricity,” AfDB said in a statement late on Thursday.
“The second pillar prioritises strengthening of financial management and improving the enabling environment for private sector investment and finance for sustainable job creation.”
The government plans to spend 14.2 billion dollars to construct a new standard gauge rail network in the next five years financed with external loans.
It also plans to build a new 10 billion dollars port at Bagamoyo, expand existing airports and invest in new roads.
AfDB said its board members underscored the need for Tanzanian authorities to ensure that the country’s high GDP growth delivered robust economic transformation, poverty reduction and improved livelihoods.
Tanzania boasts economic growth of seven per cent a year, yet it is largely driven by state investment and poverty remains high.
Tanzania, like its neighbour Kenya, wants to profit from its long coastline and upgrade existing rickety railways and roads to serve growing economies in the land-locked heart of Africa. (Reuters/NAN)
