The UK Export Finance (UKEF) has allocated €422m in guarantees for infrastructure work on the Tanzanian archipelago of Zanzibar.
Funding will be focused on two projects: an upgrade to Pemba Airport and 103km of road improvements between Pemba and Unguja islands. UKEF says this will create €117m in export opportunities for British companies.
The fund partnered with Deutsche Bank and Citigroup on the €180m airport loan.
Nigel Huddleston, the UK’s trade minister, said: “Good local infrastructure is key to encouraging businesses to invest and work with local suppliers. This deal will support crucial development across Zanzibar and unlock opportunities for UK companies in Africa.”
David Concar, Britain’s high commissioner to Tanzania, added: “I couldn’t be more proud of this partnership. Developing countries need access to affordable infrastructure financing from reliable partners – and that is exactly what this initiative will deliver.”
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