Tanzania and South Korea signed on 8th December 2020 the agreement for a USD 300 million concessional loans to finance development projects.
The agreement was signed by the permanent secretary of the Ministry of Finance and Planning of Tanzania, Doto James, and Cho Tae-Ick, the South Korean ambassador to Tanzania.
Disbursed from the Korean Economic Development Cooperation Fund (EDCF), the loan will be used to fill Tanzania’s government budgetary gap caused by the COVID-19 pandemic, James explained.
He also mentioned some of the development projects that will benefit from the loan, such as the construction of two substations for the Kigoma-Nyakanazi power transmission line, the improvement of sewerage services in Dodoma, and the construction of the new Selander Bridge in Dar es Salaam.
Korea’s development aid is provided through the Korean International Cooperation Agency (KOICA) and EDCF. KOICA is responsible for bilateral grants and the EDCF for bilateral loans.
EDCF assists partner countries by providing funding for their industrial development and economic stability.
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