Home » Deutsche Bank finances three major road upgrades in Zanzibar
Business Defence Economy General News Global News Government News Politics Tanzania Zanzibar

Deutsche Bank finances three major road upgrades in Zanzibar

Deutsche Bank (XETRA: DBKGn.DB / NYSE: DB) today announced the close of a 263 million euro lending facility to the Ministry of Finance in the United Republic of Tanzania, which will support the rehabilitation and upgrade of three major roads in Zanzibar.

Deutsche Bank acted as a Coordinating Mandated Lead Arranger, Agent and Lender on the two-tranche loan. The first is a 242 million euro facility provided by both Deutsche Bank and UK Export Finance (UKEF), which also includes a UKEF buyer credit loan guarantee. The second is a 21 million euro commercial facility by Deutsche Bank as a sole lender.

Covering a total distance of 103 kilometers, the financing is to rehabilitate and upgrade the Tunguu-Makunduchi (48km), Fumba-Kisauni (12km), and Moani-Chake and Pemba Airport Spur (43.5km) roads in Zanzibar. The upgrade will expand the three roads to four lanes each, while also installing street lighting and additional paving. It is designed to help increase road safety, reduce congestion, and stimulate economic development via increased access to markets and social services. It will also improve connectivity in Zanzibar and enhance tourism, which is the major revenue driver for the local economy.

Expected to take three years to complete, the construction work will be done through strategic joint ventures, with Propav Infraestructuras leading and collaborating with Mecco Ltd.

Speaking about UKEF’s support for infrastructure upgrades in Zanzibar, Nigel Huddleston, the UK’s Minister for International Trade, said: “Good local infrastructure is key to encouraging businesses to invest and work with local suppliers. This deal will support crucial development across Zanzibar, unlock new opportunities for UK companies in Africa, and grow sectors that will create jobs and boost the economy across our nations.”

Deutsche Bank Global Head of Structured Trade Export Finance Werner Schmidt said: “Deutsche Bank has been a longstanding partner for our clients in Africa, and we are proud to support the Government of Tanzania and Zanzibar on their infrastructure projects. We remain committed to supporting projects that will generate a positive impact for the people and that helps support economic growth and development.”

Kees Hoving, Co-Chief Executive Officer for Middle East and Africa (MEA), said: “Deutsche Bank continues to grow its African business and this important transaction in Tanzania is yet another key milestone in our ambition to support ‘Building a better Africa’.”

Source: ZAWYA