AfDB Lend USD120m to Tanzania to Support Infrastructure and SMEs
The African Development Bank (AfDB)
approved a USD120m Line of Credit (LOC) to Tanzania to finance infrastructure
and Small and Medium Enterprise (SME) projects.
The LOC is allocated to CRDB, the
largest commercial bank in Tanzania, which supports various sectors such as
power, manufacturing, agriculture, and SMEs.
AfDB and CRDB signed the loan agreement in
Nairobi, Kenya on November 30th, 2016. By leveraging CRDB’s branch network and
agents, the LOC will increase lending to SMEs and women enterprises in both
urban and rural areas to create more jobs and to promote inclusive growth for
Tanzania’s economy, the AfDB indicates.
The LOC will also stimulate regional trade and
promote regional integration through expanding capacity of the country’s port
and airport, which in turn will stimulate tourism and government revenues.
Tonia Kandiero, AfDB’s Resident
Representative in Tanzania, when in conversation with TanzaniaInvest, said:
“With its geographical location, peace, and political stability, the commitment
of Tanzania to regional integration will position the country as a very
important player in the economy of Africa in the near future.
” Over the past 5 years, the focus
of the AfDB in Tanzania has been mostly on infrastructure development and
governance.
The African Development Bank (AfDB) has
recently approved the 2016–2020 concessional resource assistance package for
Tanzania worth over USD1.1bn for infrastructure development and better
governance.
The loan will be used mainly to fund
infrastructure projects in the transport and energy sectors to promote domestic
and regional transport connectivity while improving access to reliable,
affordable and sustainable electricity.
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