Tanzania to receive Sh452bn Credit Suisse boost for SGR, power projects

Dar es Salaam. Tanzania will receive a $200 million (about Sh452 billion on the prevailing exchange rate) loan from Credit Suisse that will help the country in implementing its mega energy and railway development projects.

The Minister for Finance and Planning, Dr Phillip Mpango said in Dar es Salaam yesterday that he held talks with a delegation from Credit Suisse - which was led by the bank’s managing director, Mr Lawrence B. Fletcher – where the two parties agreed on the need to cooperate in the execution of development projects.

“We have made progress in the securing of the loan and we are confident that we will get $200 million within the financial year 2018/19,” said Dr Mpango.

He mentioned some of the strategic development projects that the government was undertaking to be construction of the Standard Gauge Railway line, purchasing of airplanes for Air Tanzania Company Limited (ATCL) and the Rufiji Hydropower Project.

The Stiegler’s Gorge hydropower project will produce a total of 2,100 megawatts of electricity upon completion.

“The government is also undertaking a project to expand Dar es Salaam, Tanga and Kigoma ports….The government is also building several roads across the country that will connect Tanzania to Rwanda and Burundi, a development that will stimulate economic activities across the region,” he said.

According to Mr Fletcher, the bank was supporting the projects in order to help Tanzania to meet its development goal of becoming a semi-industrialised middle income country.

He said Credit Suisse will issue the $200 million loan to Tanzania as soon as processes for the loan issuance are completed.