Announcement of World Bank Provides Eleven Million Dollars Loan to Assist Medium-Scale Industry in Tanzania on July 2, 1979

. . . . FOR IMMEDIATE RELEASE eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/127 JULY 2, 1979 WORLD BANK PROVIDES $11 MILLION LOAN TO ASSIST MEDIUM-SCALE INDUSTRY IN TANZANIA The World Bank today announced the approval of an $11 million loan to the Tanganyika Development Finance Company, Ltd. (TDFL), the main institution in Tanzania for providing loans and equity funds to the private sector. TDFL will use the loan funds to finance its projected lending to medium- scale industrial enterprises and related services and agro-processing and tourism development projects through December 1981. The Bank's assistance will help to improve and enhance TDFL's role as a financial intermediary in Tanzania and will contribute foreign exchange resources needed for medium- sized investments in the sectors involved. The $11 mill ion Bank loan to TDFL is expected to lead to a total investment of about $55 mill ion and create ~ 6,500 to 7,000 new jobs. TDFL was established in December 1962, and is jointly owned by the Tanzanian Investment Bank and bilateral deve1opment agencies of the United Kingdom, the Federal Republic of Germany, and the Netherlands. By the end of 1978, it had provided assistance totaling about $32.2 million for 87 proj- ects, of which 86% were in the private sector and the rest were government- owned entities. TDFL expects to increase its annual level of approvals to about $12 mill ion by 1980, and raise the proportion of its equity in appro~ed projects from an average of 21% in recent years to 33% over the next five years. In keeping with the government 1 s Basic Industrial Strategy, announced in 1974, which gives priority to industries catering to the basic needs of the majority of Tanzanians and to the development of heavy industry, TDFL has developed a long list of projects it co~ld assist in the manufacturing sector involving basic products and processes, e.g., bolts and nuts manufacturing, steel rolling, wire gauze manufactu,e, production of industrial alcohol and carbon dioxide, and construction materials. The World Bank loan of $11 mil lion to TDFL is guaranteed by the Govern- ment of Tanzanfa. It is repayable in conformity with the aggregate amortiza- tion schedule for TDFL's ~pprcveci s11bloans and investments and carries 7.9% interest a year. • NOTE: Money figures are expressed in U.S. dollar equivalents.