The Government of Tanzania has signed two loan agreements. One is a US$100m deal from the Republican Government of Korea and a US$10m as assistance from Korea International Cooperation Agency (KOICA).
The funds will be channeled into various MKUKUTA projects. These are projects that have been specified in the Big Result Now (BRN) project including agriculture, water, energy, and also the health sector. The deal was sealed between the Ministry of Finance Permanent Secretary Dr. Servacius Likwelile and the Korea Republic Ambassador in Tanzania Mr. Chung IL.
The Korean government has been having good diplomatic relationship with the Republic of Tanzania ever since they set up office in the country in 1992. Korea and Tanzania enjoy relationship that extends well beyond political and economic connections. Korea has been playing an important role in implementing Official Development Assistance (ODA) for Tanzania reflecting its own strategy and willingness to development.
Tanzania is at an excellent position in diplomatic leadership and the national economic growth rate is almost 7.0 per cent and a significant portion of the national budget is relying upon foreign aids.
The main drivers of Tanzania’s rapid economic growth continue to be a small number of fast growing capital intensive sectors, particularly the communications, financial services, construction, manufacturing and retail trade sectors.