Tanzania borrows $250m for infrastructure projects
8 August 2011
Tanzania is to borrow $250 million (£153.21 million) in order for it to pursue infrastructure projects.
Earlier today (Monday August 8th), the East African nation signed a loan agreement with several financial institutions led by Stanbic Bank in an attempt to boost its road, telecoms and railway networks, Reuters reported.
Finance minister for Tanzania Mustafa Mkulo said another $1.5 billion will be spent on boosting the country's infrastructure by 2016, according to the news source.
It reported him saying: "This is a unique loan agreement being signed today, without sovereign guarantee."
The $250 million financing will go towards the $1.73 billion Tanzania plans to spend on infrastructure in 2011-12.
This comes after the World Bank recently announced a reward of $59 million will be given to Tanzania's Transport Sector Support Project, which will improve Zanzibar International Airport so that the island can cope with greater numbers of tourists and boost the nation's economy.