Tanzania to avoid loans with stringent conditions

Tanzania’s President, John Magufuli has called out multilateral financing institutions for setting tough loan conditions, saying the government will henceforth avoid such loans.

Magufuli, who was laying the foundation for water project in Arusha, commended the African Development Bank (AfDB), which he says has ‘soft loans’.

‘‘The African Development Bank has less stringent terms, and you can see what it has done for this country,” the president said.

Projected to triple the water supply in Arusha city from 45m litres a day to 200m, when its completed in 2020, the $226m water project is financed by AfDB.

The president went on to explain that projects that have been funded by the pan-African bank, have a direct impact on the economy.

He cited projects like the AfDB-funded roads connecting Burundi, Tanzania and Kenya, saying they are better than loans focused on institutional reforms and feasibility studies, ‘which are never completed’.

Magufuli recently held crisis meetings with the World Bank as the latter held back a $300m loan towards education projects.

The president also recently said he prefers Chinese aid because it has fewer conditions.

Africa News