Korea Grants 422 Billion for Zanzibar Hospital

The Government of Tanzania and the Government of the Republic of Korea have signed a concessional loan agreement worth 422.16 billion shillings for the construction of the Binguni Referral Hospital in Zanzibar.

The loan agreement was signed in Seoul, Korea, on June 5, 2024, by the Permanent Secretary of the Ministry of Finance, Dr. Natu Mwamba, on behalf of the Government of Tanzania, and by Mr. Hwang Kiyeon, Senior Executive Director and Board Member of Exim Bank – Korea, on behalf of Korea.

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This loan is one of the achievements resulting from the official visit of the President of the United Republic of Tanzania, Her Excellency Samia Suluhu Hassan, to Korea, which commenced on May 31, 2024.

The visit has been highly successful in strengthening economic and developmental cooperation between Tanzania and Korea, and this loan is a testament to those efforts.

The Binguni Referral Hospital to be constructed with this loan will include buildings and four specialized disease units, including units for maternal and child health, as well as a training center for healthcare staff. Additionally, it will encompass residential houses for the hospital staff.

Moreover, the loan will facilitate the purchase and installation of state-of-the-art medical equipment and the establishment of a health communication system to enhance healthcare service delivery.

The signing ceremony was witnessed by the Minister of State in the President’s Office, Finance, and Planning – Zanzibar, Honorable Dr. Saada Mkuya, who explained that the construction of this hospital is a significant step towards improving healthcare services in Zanzibar.

Dr. Mkuya noted that once completed, the hospital will increase the availability of quality medical services for the people of Zanzibar, reduce the mortality rate due to improved healthcare services, and promote the provision of quality health education through the training center, which will be equipped with modern learning facilities.

Furthermore, Dr. Mkuya emphasized that this investment is crucial for Zanzibar as it will enhance the hospital’s capacity to provide services for various medical conditions, especially specialized diseases requiring expert treatment and specific equipment.

She added that, in addition to creating jobs for the people of Zanzibar, the construction of this hospital will strengthen the health sector and boost investment in medical technology, thus contributing to better living standards and the well-being of the citizens.

This loan from Korea also aims to reinforce the long-standing cooperation between the two countries, particularly in the health sector, which is vital for social and economic development.

The Government of Tanzania has expressed its satisfaction with this assistance and holds high hopes that the construction of this hospital will contribute significantly to improving healthcare services in the country, particularly for the residents of Zanzibar.

The Binguni Referral Hospital construction project is expected to bring substantial benefits to the people of Zanzibar and contribute to the government’s efforts to enhance the national healthcare system.

The Government of Tanzania extends its gratitude to the Government of Korea for this concessional loan and pledges to ensure that these funds are utilized effectively for the development of the health sector in the country.