$525m 'needed for Tanzania's transport infrastructure'
10 August 2011
Tanzania requires $525 million (£322.85 million) in order to improve its transport infrastructure, it has been said.
Finance minister Mustafa Mkulo has revealed that the East African nation needs the money to invest in its road and rail networks in 2011-12, Bloomberg reported.
This would be in addition to the $250 million the country has agreed to borrow from a consortium of financial institutions led by Stanbic Bank earlier this week.
Mr Mkulo said the loan would go towards improving Tanzania's infrastructure development, "especially in the areas of power and roads".
He noted that $1.5 billion will be spent by 2016 as part of a five-year plan to encourage the country's expansion.
Bloomberg has now revealed the minister plans to borrow the additional $525 million to develop its transport system further, with this money being spent on building new roads and rail links to areas that have the "highest economic potential".
These include locations where there is a strong agriculture, mining or tourism sector.