The African Development Bank (AfDB) approved a USD120m Line of Credit (LOC) to Tanzania to finance infrastructure and Small and Medium Enterprise (SME) projects.
The LOC is allocated to CRDB, the largest commercial bank in Tanzania, which supports various sectors such as power, manufacturing, agriculture, and SMEs.
AfDB and CRDB signed the loan agreement in Nairobi, Kenya on November 30th, 2016.
By leveraging CRDB’s branch network and agents, the LOC will increase lending to SMEs and women enterprises in both urban and rural areas to create more jobs and to promote inclusive growth for Tanzania’s economy, the AfDB indicates.
The LOC will also stimulate regional trade and promote regional integration through expanding capacity of the country’s port and airport, which in turn will stimulate tourism and government revenues.
Tonia Kandiero, AfDB’s Resident Representative in Tanzania, when in conversation with TanzaniaInvest, said: “With its geographical location, peace, and political stability, the commitment of Tanzania to regional integration will position the country as a very important player in the economy of Africa in the near future.”
Over the past 5 years, the focus of the AfDB in Tanzania has been mostly on infrastructure development and governance.
The African Development Bank (AfDB) has recently approved the 2016–2020 concessional resource assistance package for Tanzania worth over USD1.1bn for infrastructure development and better governance.
The loan will be used mainly to fund infrastructure projects in the transport and energy sectors to promote domestic and regional transport connectivity while improving access to reliable, affordable and sustainable electricity.