State refutes false reports on loan

DAR ES SALAAM: The government has described as false and baseless media reports claiming Tanzania relinquished her strategic minerals in exchange of 2.5 billion US dollar (about 6.6tri/-) concession loan from Korea.

The government spokesperson and the Director of the Tanzania Information Services, Mobhare Matinyi said Tanzania did not sign any agreements relinquishing control of its sea or strategic minerals during President Samia Suluhu Hassan’s visit to Korea.

“Reports circulating on social media claiming Tanzania offered its resources as security for the loan are utterly unfounded and not true but simply smear campaign,” he told reporters in Dar es Salaam yesterday.

The agreement signed concerns a 6.6tri/- soft loan from Republic of Korea’s Economic Development Cooperation Fund (EDCF) designated for infrastructure projects in Tanzania.

“This clarification by the Tanzanian government assures transparency regarding the loan agreement and emphasizes its focus on infrastructure development and collaborative economic initiatives with Republic of Korea,” Mr Matinyi said.

This marks the third loan Tanzania has received through the EDCF, following previous loans of 733 million US dollars (2014-2020) and 1 billion US dollars (2021-2025).

It is a low-interest rate of 0.01 per cent, with a 40-year repayment period and a 25- year grace period, meaning repayments will not begin until the 26th year.

Also Read: Tanzania, S. Korea signs Us$2.5bilion deal

Tanzania Ambassador to Republic of Korea, Togolani Mavura, emphasized that the country offered no collateral in exchange for the loan.

President Samia also witnessed the signing of two Memoranda of Understanding (MoUs) for cooperation in the Blue Economy and Strategic Minerals sectors.

Additionally, a Joint Statement on the launch of negotiations for an Economic Partnership Agreement (EPA) was signed.

The Minister of State in the President’s Office (Planning and Investment), Professor Kitila Mkumbo elaborated on Tanzania’s strategy for Strategic Mineral Resources (SMR).

“The nation seeks investors to develop the sector within Tanzania, focusing on research, mining, and value addition, aiming to export finished products like car batteries rather than exporting raw materials,” he explained Regarding the Blue Economy agreement, Prof Mkumbo highlighted collaboration plans for improved fishing technology, construction of fishing ports and processing plants, and technological advancements through establishing an ICT college in Dodoma.

Dr Samia is on an official of President Yoon Suk Yeol.

President Yoon expressed hopes for a swift EPA resolution to diversify and boost trade between the two countries.

Korean companies have a history of participating in major infrastructure projects in Tanzania, including railroads and bridges. Tanzania and Korea established diplomatic ties in 1992, and this visit is the first by a Tanzanian leader in 18 years.

President Samia expressed her hope for continued collaboration to promote trade and investment between the two countries.

President Samia also proposed cooperation in new sectors, including natural gas energy development, the creative sector (arts and film), and opening Korea’s job market to Tanzanian youth through the Employment Permit System (EPS).

Her two-day official visit concluded with a transition to a working visit to attend the Korea-Africa Summit.

Seoul described the meetings as a critical step for Korea to enhance strategic cooperation with Africa amid transnational crises.