Media Wire Express Correspondent
In a significant move to bolster Tanzania’s infrastructure and agricultural sectors, the government has secured multinational loan agreements totaling 158.1 million US dollars, equivalent to 398.7bn/-, from the African Development Bank (AfDB).
The funds are designated for the execution of the Standard Gauge Railway (SGR) Project Phase II and the recapitalisation of the Tanzania Agricultural Development Bank (TADB).
Minister for Finance, Dr Mwigulu Nchemba said in Dar es Salaam yesterday after the signing of the documents that, of the funds, a total of 231.3bn/- will be used for SGR Lot VI with a length of 411 kilometres from Tabora to Kigoma and Lot VII with a length of 156 kilometres from Uvinza to Malagasy.
“These two sections are making a total of 567 kilometres. This project will be implemented for a period of seven years from 2024 to 2031,” said Dr Nchemba.
He said the objectives of the projects are the continuation of the implementation of the National Vision 2025, the Third Five Year National Development Plan 2021/22-2025/26 and the Chama cha Mapinduzi Election Manifesto for 2020-2025 as well as government’s agenda aimed at strengthening the transport infrastructure and the agricultural sector in this country.
Dr Nchemba said the SGR investment will enable connection with the Dar es Salaam Port through Dar es Salaam – Morogoro – Makutupora – Isaka – Tabora Lot I, II, III and IV.
“We aim to connect Tanzania with Burundi through SGR from Malagarasi to Musongati – Burundi with a length of 84 kilometres, and also to connect the Democratic Republic of Congo (DRC) from Malagarasi. That is why it is called the Multinational Tanzania/Burundi, DRC, SGR Construction Phase II,” said Dr Nchemba.
The project will strengthen transport by rail and improve regional and commercial relations between Tanzania and its counterparts in Burundi and the DRC.
In addition, Dr Nchemba said the agreement of 166.4bn/- to enhance TADB capital aimed at enabling capitalised Tanzanians for agricultural activities thus increasing production, strengthening food security, promote the trade of products sold locally and abroad as well as increase jobs and will raise the economy for individual, family and the nation as whole.
“Through this increase of capital, we expect TADB to increase access to loans for youth groups through the Building a Better Tomorrow (BBT) programme which continues to be implemented by the government through the Ministry of Agriculture,” he said.
However, Dr Nchemba said that it is the first time AfDB supported such kind of project, and said Tanzania benefited from AfDB’s five main pillars of ‘light up and power Africa, feed Africa, integrate Africa, Industrialize Africa and Improve the lives of people of Africa’.
“Our country has benefited greatly in all these pillars since 1971, including construction, energy, water, education, agriculture, health and the private sector,” he said.
The Minister said AfDB is a partner of their choice and they will continue working with the bank for years for the benefit of the nation and Africa as a whole through the Country Strategy Paper with AfDB which is in line with the country’s plans and priorities, including the Tanzania’s Development Vision 2050 which continue to be prepared by the Government.
For her part, the AfDB Country Manager, Dr Patricia Laverley said the two projects are consistent with the government of Tanzania’s priorities, the Bank’s Ten-Year Strategy 2024-2033, their high-five strategic operational priorities, as well as Tanzania Country Strategy Paper (CSP 2021-2025).
Dr Laverley said the TADB loan will support the entire agricultural value chain, with a special focus on women-led businesses, by providing lending at more affordable rates and extended tenures.
“I would like to reaffirm our firm commitment in supporting the Government and people of Tanzania in your efforts to realise your development aspirations,” said Dr Laverley.
The Minister for Transport, Prof Makame Mbarawa said the completion of the construction from Uvinza to Musongati will enable access to the large Nickel ore mine located in Musongati in Burundi, which is estimated to have reserves of 150 million tonnes of Nickel, Cobalt, Copper, and the railway is expected to transport 3 million tonnes of minerals per year thus will develop the economy of both countries.
Source:Daily News
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