Kuwait promises Sh400bn loan to Tanzania

Dar es Salaam. The Kuwait for Arab Economic Development Fund will provide a soft loan of $207.3 million (Sh466.4 billion) to Tanzania to improve infrastructure.

The money will be spent on constructing a 257km road between Morogoro and Dodoma.

Ministry of Finance and Planning spokesman Benny Mwaipaja’s statement yesterday quoted Kuwait Ambassador Jassem Ibrahim Al-Najem as saying the aim was to improve infrastructure and reduce traffic congestion.

The diplomat was speaking with Finance and Planning minister Philip Mpango.The envoy pledged Kuwait’s continued support to Tanzania to undertake development projects in key sectors. The two countries have been cooperating for 40 years.

Tanzania has received a total of Sh608 billion in loans from the Kuwait to enhance healthcare settings, infrastructure, agriculture, electricity and water, according to statement.

Dr Mpango thanked Kuwait.

He said Tanzania last year received loans of Sh115 billion from Kuwait to construct the 85km Chaya-Nyahua tarmac road. Tanzania also expects to receive another soft loan of $13.6 million (Sh31 billion) from Kuwait to rehabilitate Mnazi Mmoja Hospital in Zanzibar.