Tanzania: $2 Billion Investment Projects in Offing

Dar es Salaam (file photo).

Dar es Salaam — The government is in negotiations with Danish and German investors that will culminate into the construction of a $1.9 billion (about Sh4.2 trillion) petrochemical plant in Kilwa, Lindi region, President John Magufuli said yesterday.

Speaking during the 11th Tanzania National Business Council (TNBC) meeting in Dar es Salaam yesterday, Dr Magufuli said the investors plan to produce fertilizer by using the available natural gas and is expected to provide over 4000 direct and indirect jobs to Tanzanians.

"I want to assure investors that this country is safe for investment," he told over 200 senior government and private sector players who attended the meeting.

He said a beer manufacturer was also planning to inject $100 million in setting up a brewing plant in Dodoma.

In another development, President Magufuli said domestic financial institutions have started reducing the discount rate to about 6-8 per cent from over 20 per cent.

He said the reduction was part of loosening monetary policy, which will in turn stimulate lending to private sector.

"Unscrupulous government officials have been depositing funds set aside for development projects at commercial banks where they share interests with banks CEOs something that really delayed the country's development," he said.

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