Dar es Salaam — The Development Bank of Southern Africa (DBSA) has joined forces with the Tanzania Investment Bank to finance various infrastructure projects.
The new partnership is expected to pay for the rehabilitation of berths one to seven at Dar es Salaam port and also parts of Mtwara port.
No details of the actual amount of money involved are provided however in a memorandum of understanding the two banks will also pay for additonal rail wagons and locomotives. Other projects include the construction of the new Mwanza and Arusha airport terminals, together with other projects in the water and energy sectors.
The joint fund is expected to enable Tanzania Railways Limited (TRL) to transport over three million tons of goods per year by 2015 and also allow Tanzania Airport Authority (TAA) to double its handling capacities for both Mwanza and Arusha airports after the completion of the terminals.
Speaking in Dar es Salaam recently, the Minister of Transport Dr. Harrison Mwakyembe said the government was looking at all available channels for raising the resources to modernize the the country's transport system.
He said the government has long realized it cannot depend on its own resources to develop the much needed infrastructure.
"We have come to realize that dependence on government budget will not enable us to achieve our objectives in the short term.
"We welcome the efforts made by the two financial institutions that will enable the transport sector to meet its long term objectives and also enable the Ministry accomplish its projects," Dr. Mwakyembe said.
He said the signing of the MOU will support the financing of different projects in the country that will underpin the country's economic growth.
Peter Noni, TIB's Managing Director, said the cooperation and co-financing with ABSA (one of South Africa's top banks) is in line with the bank's collective objectives of supporting economic growth through development to ensure rapid and sustainable infrastructure development in the country.
Noni said the partnership was an important milestone for the bank in ensuring the attainment of the nation's Vision 2025.
According to Patrick Dlamini, the DBSA Chief Executive, their bank was proud to partner with TIB in development of an innovative financing solutions to fast-track infrastructure development.
Dlamini said that the synergies between the respective rich heritage and specialties of the two institutions was the main driver to promote regional economic development and growth by providing support to development projects in Tanzania.
The DBSA is a development finance institution wholly owned by the South African government with the main responsibility to finance key strategic infrastructure projects in South Africa and the rest of the African continent. This is intended to enhance the prosperity and well being of the people across the continent.