The Arab Development Bank (BADEA) has pledged to provide Tanzania with affordable loans and grant for a total of USD 3 billion or about TZS 7 trillion over the next five years for the implementation of various development projects.
The pledge was made in Cairo, Egypt, by the Bank’s Managing Director Dr. Sidi Ould Tah when he met and held talks with Tanzania’s Minister of Finance and Planning. Dr. Mwigulu Lameck Nchemba.
Dr. Tah explained that the funds will be provided over a period of five years for the development of road infrastructure, education, agriculture, strengthening the private sector and capacity building.
Minister Nchemba thanked the Bank for deciding to provide such large financing confirmed that the loans and grants will be used in energy, road construction, and agricultural projects such as irrigation schemes and livestock keeping that will open up economic opportunities.
“The funds will also be used to develop a private sector where banks will be provided with a portion of the funds to provide low-interest loans to the productive sectors and to promote employment for youth and women,” Dr. Nchemba said.
Present at the meeting was also the Minister of State (President’s Office) Finance and Planning of Zanzibar Hon. Jamal Kassim Ali, who explained that the archipelago would also benefit from part of the loans, of which USD 450 million will be used to implement several strategic projects.