Tanzania will receive a $305 million loan from the World Bank to finance the expansion of its main port in its main commercial city Dar es Salaam, where congestion and inefficiencies are hampering ambitions to transform the east African nation into a regional transport hub.
The country’s finance and planning minister Philip Mpango made the announcement in a statement released on Thursday.
“The World Bank has agreed to give Tanzania loans for various development projects, including a credit of $305 million for an expansion project at the Dar es Salaam port,” Mpango said.
The World Bank said in a 2014 report that inefficiencies at Dar es Salaam port was costing Tanzania and its neighbours up to $2.6 billion a year. Tanzania wants to lift capacity at the port to 28 million tonnes a year by 2020 from 15 million tonnes currently.
The loan was announced following talks between President John Magufuli and the World Bank’s vice president for Africa Maktar Diop.
Officials said Tanzania was also in talks with the World Bank for a $425 million additional funding to expand a new public transport system in its commercial capital.