November 18, 2017

Tanzania will seek $700 million in private placement, bank loans

Tanzania will seek $700 million in private placement, bank loans ...NAIJA INVEST...

Tanzania’s Finance Ministry said it plans to raise as much as $700 million through selling debt to selected investors and commercial bank loans to help tackle unreliable electricity supplies and poor infrastructure.

Even though the interest rates will be higher than from development institutions, the private funding will be more predictable for the country, Deputy Finance Minister Saada Salum said.
“While non-concessional loans have higher interest rates and shorter grace periods than concessional loans, non-concessional loans have been a reliable tool for us in borrowing,” Salum said in an interview yesterday in the capital, Dodoma.
“As Tanzania expects continued economic growth, it is important that we invest in infrastructure to make sure that the country can sustain this growth.”  Tanzania, East Africa’s second-largest holder of natural gas reserves, plans to spend 5.7 trillion shillings ($3.5 billion) on development projects in 2013-14, including moving forward with plans to build a pipeline from the southern Mtwara region to the commercial hub of Dar es Salaam, Reuters reports.  The country is also going to spend money on strengthening the electricity transmission network and bringing power to rural communities.
Finance Minister William Mgimwa said in his annual budget speech yesterday that his spending plan factors in 1.2 trillion shillings in external, non-concessional borrowing for the year through June 2014.
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