Tanzania's turn to Turkey for SGR funds leaves China in limbo
A railway line that once linked Kenya’s coast to Tanzania is no longer in use. Tanzania will use proceeds from a Eurobond and concessional loans to fund its standard gauge line. PHOTO | FILE
Tanzania is looking at using proceeds from its $700 million Eurobond and concessional loans to fund the construction of its standard gauge railway, making a big policy shift from its regional neighbours, who have bought into China’s fund, build and operate model to fund their railway projects.
This change of tack brings into question the role China will play in the project, having agreed in July last year to advance $7.9 million to the project through its Exim Bank, despite its key contracting firms having been blacklisted by President John Magufuli’s administration over tendering malpractices.
