African Development Bank (AfDB) has expressed interest to finance the implementation of the Standard Gauge Railway (SGR) project in Tanzania.
The deal was revealed by Minister for Finance and Planning, Dr Mwigulu Nchemba. Mr Nchemba had a closed-door meeting with AfDB Group Vice-President for Agriculture, Human and Social Development, Dr Beth Dunford. Dr Nchemba said that AfDB has conveyed interest to chip into the mega strategic project of the SGR. Particularly, the areas that have not been completed.
Importantly, the governments of Tanzania and Burundi applied for financing from AfDB towards the construction of the Tanzania/Burundi (Uvinza – Musongati – Gitega) SGR section. Additionally, in May this year, the government publicized an invitation for the initial selection work of the same.
Additionally, phase one of Tanzania – Burundi – DR Congo SGR project intends to actualize the plan using loans to make payments. The contract of works for the construction of SGR under Design and Build Arrangement will be funded using an AfDB loan.
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Significance of the AfDB loan to finance SGR (Standard Gauge Railway) in Tanzania’s economy
The two governments have entered into a bilateral agreement and appointed the Tanzania Railways Corporation (TRC) as the implementing agency of the multinational project.
Approximately 2.6 billion US dollars have been provided by the AfDB for the implementation of 24 projects. Importantly, the agricultural sector has been given four per cent of all funds that have been extended by the bank. “The fund has been used in production projects including promoting the cultivation of crops such as wheat, and sunflower and increasing income for the farmer,” according to Dr Nchemba.
Moreover, Dr Nchemba thanked AfDB on behalf of the government, for the support they provided. Their support is in various development sectors including infrastructure, energy, agriculture, water and education.
