Agreements have been signed by donors from the European Union to help finance Tanzania infrastructure projects. The donors have promised to contribute US$ 103m.
Speaking during the signing ceremony, the head of the EU delegation to Tanzania Filiberto Ceriani Sebregondi said that US$ 82.7m of the funds will be used to finance the improvement of roads, energy, agriculture and trade and development, US$ 20.5m will support the Southern Agricultural Corridor of Tanzania and eventually US$ 2m will be used to remove roadblocks in Tanzania’s central transport corridor.
Tanzanian Permanent Secretary for the Ministry of Finance, Servacious Likwelile, welcomed the support terming it as a form of strengthening their friendship and the good will that exists between the European Union and Tanzania.
The power sector poses Tanzania’s most serious infrastructure challenge. Despite significant improvements in pricing and operational performance in recent years, inefficiency still absorbs about 1.4 percent of GDP.