A USD 300 million concessional loan agreement was signed by Tanzania and South Korea to fund development projects.
The agreement was signed by Doto James, the Permanent Secretary of the Tanzanian Ministry of Finance and Planning, and Cho Tae-Ick, the Ambassador of South Korea to Tanzania.
The loan, disbursed from the Korean Economic Development Cooperation Fund (EDCF), would be used to fill Tanzania’s government budget deficit created by the COVID-19 pandemic, James explained.
He also listed some of the infrastructure projects that will benefit from the loan, such as the construction of two substations for the Kigoma-Nyakanazi power transmission line and the Dar es Salaam New Selander Bridge, development of the national infrastructure for land records, and sanitation facilities in the Dodoma capital.
Korea’s development assistance is provided by the Korean International Cooperation Agency (KOICA) and EDCF. KOICA is responsible for bilateral grants and the EDCF is responsible for bilateral loans.
By providing financing for their industrial growth and economic prosperity, the EDCF assists partner countries.