Tanzania secures $200 million loan from Credit Suisse

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Credit Suisse Bank is set to lend Tanzania $200 million for developmental projects, the East African nation has revealed.

According to Tanzania’s finance ministry, the UK arm of the Swiss bank will lend the facility to the government in the 2018-2019 fiscal year, which will be used to fund energy and railway projects across the country.

Credit Suisse to lend Tanzania $200m

Tanzania’s government says the Credit Suisse loan will be used to enhance a number of key infrastructure development projects across Tanzania, including the construction of the Standard Gauge Railway, buying new aircraft as part of an Air Tanzania revival and several electricity projects.

Finance Minister Philip Mpango also revealed the government plans to implement the Rufiji hydropower project which will supply 2,1000 megawatts of electricity upon completion.

Other projects include the expansion of the Dar es Salaam and Tanga ports as well as a number of road projects that will connect Tanzania with neighbouring nations Rwanda and Burundi.

According to the World Bank, Tanzania has sustained relatively high economic growth over the past decade with an average of 6-7% per year. However, while the poverty rate has declined in the country, population growth means the absolute number of poor people has failed to decline.

Earlier this year, the IMF warned that the Tanzania government needs to take action in order to reverse the country’s economic slowdown.

“Although GDP data point to continued strong growth, other high-frequency data suggest a weakening of economic activity,” the IMF concluded in its Policy Support Instrument (PSI) review for Tanzania.

Featured image: By dennis smith, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=13214045

About Aaron Brooks

Aaron Brooks is a UK journalist who wants to cut out the international agendas in news. Spending his early years in both England and Northern Ireland he saw the difference between reality and media coverage at an early age. After graduating from the University of Chester with a BA in journalism, his travels revealed just how large the gap between news and the real world can be. As Editor-in-Chief at East Africa Monitor, it’s his job to provide a balanced view of what’s going on in the region for English-speaking audiences.