M a r k e t N e w s
Tanzania secures huge loan to build a new tractors assembly plant
Posted on : Friday , 2nd September 2016
Tanzania has secured a loan worth 110 million U.S. dollars to establish a tractors assembly plant in its efforts to become east Africa’s food basket and a middle income nation by 2025.
Tanzania will become the first nation in sub-Saharan Africa to venture into assembling farm machinery, which will transform the agricultural sector in the region, when the plan is fully implemented.
"We have secured loan from the Poland of about 110 million dollars, which will be used to establish the plant where tractors, power tillers will be assembled," said Adrelhem Meru, Permanent secretary in the Tanzania’s Ministry of Industries, Trade and Investment.
"Part of the money will be used to build warehouses in regions which are potential for agricultural production.
The warehouse facilities will be used for storing food crops," the official said Wednesday here, when he met with foreign investors.
He added that the move is in line with the government’s industrialization drive.
The new assembly plant will be built in Kibaha area, Coast Region, a few kilometers from the busiest commercial capital Dar es Salaam.
Meru said: "As government, we’re determined to bring industrial development and is inviting investors to invest in the sector.
"And we’re will improve the industrial sector do that it employs large number of people as well as improving country’s socio-economic development."
He also said that by establishing tractors’ assembly plant, Tanzania will be able to produce more tractors, which are cheaper and easily used by farmers and the rest be sold to the neighboring countries.
The official called upon investors to take Tanzania as their investment destination when they think of investing in Africa because of friendly investment environment.
He also said that a cement factory will be built in the northeastern region of Tanga, which is expected to employ about 15,000 people upon completion.
According to the PS, a ceramic factory will be built by investors from China and it will also produce quality tiles.
Source : www.coastweek.com
