Tanzania government secures loan for road infrastructure improvements

Date: 9/8/2011

Road infrastructure in Tanzania is set to undergo improvements after the government secured a loan from Standard Bank Group to fund development projects.

Worth $250 million (£152.78 million) and running over the course of seven years, the fund was agreed by a consortium of local and international financiers led by Stanbic Bank Tanzania - a subsidiary of Standard Bank.

According to the financial services provider, the move suggests that governments in Africa are now more serious about turning to commercial banks as a means of raising cash.

Minister for Finance in Tanzania Mustafa Mkulo said: "With this loan we aim to invest in infrastructure development, especially in the areas of power and roads."

In July, the African Development Bank approved a loan for $40 million, which is to go towards funding the Rift Valley Railways scheme.

Once the project is complete, it will result in a train service running between Mombasa in Kenya and Uganda's capital Kampala and will be used to transport freight and reduce some of the burden on roads in the area.

Posted by Mary Treen