Tanzania to Access USD 2.4 Billion from World Bank

World bank invests in Tanzania  Credit: Tanzania invest

World bank invests in Tanzania
Credit: Tanzania invest

The World Bank Group announced that Tanzania will access up to USD 2.4bn in concessional financing over the next three years, an increase of half a billion dollars over previous allocations. The additional resources will come from the World Bank Group’s International Development Association (IDA).

The President of the World Bank Group Jim Yong Kim made the announcement, during his recent visit to Tanzania on March 19-21, 2017. He explained that Tanzania is one of the “scale-up countries,” meaning that in addition to concessional resources, it will be able to borrow additional resources on non-concessional terms that are lower than market rates, thanks to the country’s strong macroeconomic management and political stability and the overall growth opportunities. During his visit, President Kim and Tanzanian President John Magufuli laid the foundation stone for the Ubungo Interchange in Ubungo District of Dar Es Salaam. With a total value of USD 780m, the interchange will be constructed under the Dar Es Salaam Urban Transport Project (DUTP) as a follow-on investment to the Second Central Transport Corridor (CTCP2) financed by the World Bank.

The Ubungo Interchange is a critical piece of infrastructure designed to reduce congestion at a key strategic gateway in Dar Es Salaam, and the next step in an ambitious effort to connect the Port of Dar Es Salaam to rural areas, industries, and the wider region. Kim underscored the need to leverage private sector investment for infrastructure development as well as in job-creating industries for the estimated 800,000 young men and women entering the labor market in Tanzania each year.

Credit: Tanzania Invest