Tanzania borrowed € 200 million from AFD to finance its electricity sector. 50% of the funds will go to a rural electrification project and the rest will finance the electric interconnection project with Zambia which will link the pools of the southern and eastern regions.
Tanzania has just obtained € 200 million from the French Development Agency for its electricity sector. The funds obtained in the form of loans will be used for the implementation of two major projects.
The first funded initiative is phase II of the Densification Project which will extend the electrification of rural areas. It obtained funding of € 100 million. The second initiative is the developing electric interconnection project between Tanzania and Zambia. € 100 million will also be allocated to this project, which aims to connect the Southern African energy pool to that of East Africa.
All of these projects are part of the government’s plan to make Tanzania a middle-income country by 2025.
“France has chosen Tanzania to continue its efforts not only as a partner, but also as a true friend, mainly in the fields of the economy, defense and security,” said Frédéric Clavier, l Ambassador of France to Tanzania.
Source: Agence Ecofin