Tanzania sees Afreximbank as key partner in push towards $1 trillion economy
Minister for Finance (left) Ambassador Khamis Mussa Omar, exchanges business cards with Afreximbank East Africa Regional Director Humphrey Nwugo during a meeting at the Ministry of Finance sub-office in Dar es Salaam. PHOTO | COURTESY
Dar es Salaam. Tanzania has described the African Export-Import Bank (Afreximbank) as a strategic partner in its economic transformation agenda, as the country steps up efforts to build a $1 trillion economy by 2050.
Minister for Finance, Ambassador Khamis Mussa Omar, said this during talks in Dar es Salaam with an Afreximbank delegation led by its East Africa Regional Director, Humphrey Nwugo, who was on a courtesy visit following his recent appointment.
Ambassador Omar welcomed Mr Nwugo and congratulated him on his new role, expressing Tanzania’s commitment to strengthening long-standing relations with the pan-African financial institution.
He said Afreximbank has remained an important development partner for Africa over the years, noting Tanzania’s appreciation of its support to trade, infrastructure, industrial growth and private sector development.
The minister said Tanzania was encouraged by Afreximbank’s plan to mobilise an additional $1 billion within the next 12 months for investment in the country, particularly in manufacturing, infrastructure and small and medium enterprises.
He said implementation of the Vision 2050 development agenda and the Fifth Five-Year Development Plan aims to build a competitive, private sector-led economy, adding that achieving this goal will require strong partnerships, long-term capital and innovative financing.
Ambassador Omar said there is still room to expand cooperation in key areas, including infrastructure, industry, health and trade facilitation.
He said the meeting provided an opportunity to exchange views on shared priorities and identify practical ways of strengthening collaboration.
He identified priority areas as industrial growth, private sector investment, human capital development and improving Tanzania’s competitiveness in regional and global markets.
On his part, Afreximbank East Africa Regional Director Humphrey Nwugo praised Tanzania’s economic progress and reaffirmed the bank’s commitment to supporting its long-term development ambitions, including the $1 trillion economy target under Vision 2050.
He said the bank is interested in investing in strategic projects in sectors such as oil, minerals, iron ore and soda ash, while continuing to support the private sector through credit and working capital to drive value addition and industrial growth.
Afreximbank has remained a key financier of major development projects in Tanzania, providing funding and guarantees worth billions of US dollars for infrastructure, energy and strategic investments.
In 2018, the bank issued an $800 million guarantee for the Julius Nyerere Hydropower Project in the Rufiji Basin, enabling Egyptian contractors to implement the project.
It has also provided a total of $700 million for infrastructure projects, including phases one to four of the Standard Gauge Railway (SGR).
In the financial sector, Afreximbank has approved $230 million for commercial banks in Tanzania and extended about $80 million in credit facilities to the private sector.
