Tanzania wants to fund its multibillion-dollar railway, aircraft modernisation and energy projects with its own resources, President John Magufuli has said.
“We already have the funds for the construction of the standard gauge railway until its completion from Dar es Salaam to Isaka. We also have the resources internally to fund the construction of the Stiegler Gorge hydroelectricity project,” President Magufuli said at the opening of a tobacco processing cigarette factory on Monday.
Last week, it emerged that Tanzania had already paid more than $500 million to Turkish firm Yapi Merkezi and Portuguese firm Mota-Engil for the construction of the second phase of the projects. The first phase was awarded in February last year, to build the $1.2 billion 205-km railway that will run from Dar es Salaam to Morogoro.
Last week, the contractors were given the go-ahead to build the 422-km second phase between Morogoro and Dodoma at a cost of $1.9 billion.
Tanzania has already released part of the funds for the projects.
The agreement between Kigali and Dar on the design, tendering and financing will see the two countries work jointly on financing.
Magufuli was just posturing politically and hoping nobody would examine facts. The proposed budget for this year is $14b same as last year. Revenues are $6b leaving a deficit of $8b. Most of the borrowing will have to be in foreign currency as domestic market is not deep, some projects will have to be delayed otherwise IMF will be bailing you out soon. My bet,stieglers gorge haijengwi any time.
Tanzania has had an average of 6+% economic growth rate for the last 15 years, that’s the hallmark of a robust economy! Consistency! Wakenya think they are smart because wanaongea kizungu mingi but the reality is, a critical mass of Kenyans are morons have been electing thieves and tribal bigots consistently since independence. Tanzania, like Ethiopia, itacatch up na kenya na itatupita by far.