LONDON: TANZANIA is deepening cooperation with Citibank as it prepares to issue its debut Eurobond and secure financing for strategic infrastructure projects, Finance Minister Ambassador Khamis Mussa Omar said during talks with the bank’s senior executives in London.
The meeting, held as part of the minister’s engagement with international investors and financial institutions, focused on expanding cooperation in sovereign borrowing, infrastructure financing, export credit agency (ECA) facilities, capital market development and private sector investment.
Citibank, which has operated in Tanzania since 1995, reaffirmed its commitment to supporting the country’s planned entry into international capital markets, development of the domestic capital market and investor outreach across Europe, the United States, the Middle East and Asia.
The bank also expressed its readiness to support financing for strategic infrastructure projects.
The discussions form part of the government’s broader efforts to diversify financing sources, deepen engagement with international investors and mobilise long-term capital to support infrastructure development and economic growth.
Amb Omar said the government’s financing strategy is backed by improvements in the country’s economic fundamentals, including higher electricity generation capacity, expansion and rehabilitation of the ports of Dar es Salaam, Tanga and Mtwara, and investments in aviation infrastructure.
He said implementation of the National Development Vision 2050 officially began this month, with the long-term strategy targeting a one trillion US dollar economy over the next 25 years.
“About 70 per cent of the investment required to achieve that goal is expected to come from the private sector,” said Amb Omar.
The minister also said negotiations on the proposed 42 billion US dollar (approximately 111tri/-) Liquefied Natural Gas (LNG) project had reached an advanced stage after the government and investors agreed on the project’s main operating framework. He said the project is expected to proceed once the remaining internal processes among investment partners are completed.
On the investment climate, Amb Omar said the government is implementing recommendations from two presidential commissions that reviewed the business environment and the tax system.
The reforms, he said, are aimed at broadening the tax base, strengthening tax administration and improving domestic resource mobilisation without increasing the tax burden.
He proposed establishing a formal strategic partnership with Citibank covering sovereign capital markets, infrastructure financing, export credit agency facilities, investor relations, domestic capital market development, private sector investment promotion and tax administration reforms.