The Chinese Government Offers Concession Loans to Tanzania

Tanzania Finace Minister Mustafa Mkulo

The Finance Minister of Tanzania, Mustafa Mkulo, has announced that the Chinese government has given Tanzania $180 million in concessional loans. The Chinese Commerce Minister Chen Deming disclosed the agreement during a visit to the Easat African county. Minister Chen Deming arrived in Tanzania on Thursday for a three-day working visit. According to Mkulo, the loan is part of the implementation of China‘s promises to provide $10 billion in concessional loans to Africa between 2010 and 2013.

The Finance Minister said that the loans would fund various development projects in infrastructure and information, communication and technology. He also pointed out that said was in talks with Beijing for additional loans in agriculture, railway infrastructure. The minister reiterated the fact that Tanzania stands to benefit a lot more from the Chinese. It has also been reported that China also plans to help Africa develop clean energy generation and cope with climate change, encourage Chinese financial institutions to lend to smaller African companies and expand market access for African

The Minister went on to say “Tanzania and China enjoy excellent ties and it has never been better. We have a very, very good relationship politically, economically and socially,” At the signing ceremony, the President of Tanzania, Jakaya Kikwete called for the expansion of trade between the two countries and said Chinese companies were welcome to invest in Tanzania.

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