World Bank approves Sh36 billion loan for Tanzania port expansion

World Bank photo:courtesy

The World Bank said on Sunday it had approved a $345 million (Sh36 billion) loan for the expansion of a port in Tanzania’s commercial capital Dar es Salaam, which the East African country aims to turn into a regional gateway.

Dar is vying with the port of Mombasa in Kenya to become the trade hub for landlocked neighbours such as Zambia, Rwanda, Malawi, Burundi, Uganda and DR Congo. However, both ports are hobbled by congestion and inefficiency.

The port handled 13.8 million tonnes of cargo in 2016 - an increase from 10.4 million in 2011 - reflecting an average growth of 9 per cent per year, according to the bank. Tanzania wants to lift its capacity to 28 million tonnes a year by 2020.

“The project represents the start of an incremental process towards increasing the capacity of the port of Dar es Salaam and strengthening its economic role in the region,” said Richard Martin Humphreys, the World Bank’s lead transport economist.