Tanzania lauds China’s $559m/-loan for Isaka-Mwanza SGR

DAR ES SALAAM: THE Tanzanian government has expressed gratitude to China for guaranteeing a loan of 559m/-US dollars that enables its firm, SINOSURE Insurance Corporation, to construct the fifth phase of the Standard Gauge Railway (SGR) from Isaka to Mwanza.

 That comes after an agreement signed on October 21, 2024.

The gratitude was expressed by the Permanent Secretary of the Ministry of Planning and Investment, Dr. Tausi Chande, during a meeting held in Dar es Salaam between Tanzania’s delegation, led by the Minister of State, Office of the President – Planning and Investment, Prof. Kitila Mkumbo, and the Chinese delegation, led by the Deputy Minister of Commerce of the People’s Republic of China, Tang Wenhong, at the Johari Rotana Hotel.

In the meeting, Dr. Chande requested the government of China to consider the possibility of SINOSURE participating in guaranteeing the construction of the sixth phase of the SGR from Tabora to Kigoma, which is estimated to cost 2.3bn/- US dollars, with 1.1bn/- US dollars expected to come from Development Financial Institutions (DFIs).

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Dr. Chande also highlighted the close cooperation between Tanzania and China, which has facilitated the acquisition of 108.6m/- US dollars for the Rural Communications Expansion Project – Phase One, and 270.3m/- US dollars for the 400 kV Power Transmission Project from Dar es Salaam to Arusha.

She noted that Tanzania’s economy continues to grow rapidly due to infrastructure improvements, a favourable investment environment, and political and economic stability.

On his part, China’s Deputy Minister of Commerce, Tang Wenhong, emphasized that China will continue to strengthen its economic and diplomatic relations with Tanzania for the mutual benefit of the people of both nations.