The Tanzanian government’s plans to issue its first Eurobond to fund infrastructure projects are now on schedule following a period of delays caused by a number of procedural requirements, finance minister Saada Mkuya Salum said last week.
The Eurobond process in Tanzania was originally launched in 2008, but was postponed due to the global financial crisis and launched again in 2012 with the intention of issuing the Eurobond during the 2012/13 financial year to fund infrastructure projects that would spur economic growth and improve living standards.
Because unreliable infrastructure networks have increased the cost of doing business, Salum indicated that the government is working to finalise important processes in order to float the Eurobond to finance long-term infrastructure projects and investments.
‘We expect all the processes needed in floating the Eurobond to be ready by March,’ she said adding, ‘The responsibility for meeting the enormous demand for new and better infrastructures remains to be of paramount importance owing to increased population and fast growing economic activities.’
Analysts have indicated that the Eurobond could help to bridge the gaps left by decreasing donor support of the development budget.
Several other countries including Ghana, Rwanda, and Kenya have already benefited from successfully issued bonds