Active Development AidData Chinese Aid

CDB provides $200 million loan to replenish Tanzania's foreign exchange reserves

$200M USD

Funder	China Development Bank (CDB)
Recipient Organization	Tanzania Ministry of Finance and Planning
Country	Tanzania
Start Date	Jun 01, 2015
End Date	May 02, 2026
Duration	3,988 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`61020`

Grant Description

CDB provides $200 million loan to replenish Tanzania's foreign exchange reserves Between May and June 2015, the value of the Tanzanian shilling against the US dollar entered a freefall.

In response, in June 2015, China Development Bank (CDB) and the Government of Tanzania's Ministry of Finance and Planning signed a $200 million term loan facility agreement to replenish the country's foreign exchange reserves.

📋 Loan / Grant Terms

💰 Loan Amountwas reportedly provided on non-concessional terms (including a 5

📅 Maturity7.25 years

⏳ Grace Period3.25 years

💹 Interest Rate5.9948%

According to Government of Tanzania records, at least TZS 512.1 billion — approximately $256 million — was ultimately disbursed through the loan.

📋 Staff Comments

512.1 billion Tanzanian shillings (TZS) was worth almost exactly $256 million using the 1 TZS = .0005 U.S. dollars (USD) exchange rate in June 2015.
This CDB loan is not included in the SAIS-CARI database of Chinese loan commitments that was released in July 2020. Nor is it included in the the Chinese Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020. AidData includes the loan in its dataset because the Tanzanian Government acknowledges that it contracted the loan and it is recorded in the World Bank's Debtor Reporting System (DRS).
Some potentially useful information is reported here: http://www.nao.go.tz/?wpfb_dl=210.
The loan's borrowing terms (a 5.9948% interest rate, a 7.25-year maturity, and a 3.25-year grace period) are drawn from the World Bank's Debtor Reporting System (see https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 and https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0).

📚 Sources & References

中国和南非分别向坦桑尼亚银行贷款2亿美元和6亿美元
Tanzania finalises credit rating talks, says minister
Kikao cha Ishirini na Moja - Tarehe 5 Juni, 2015
坦桑尼亚货币为何发生自由落体式贬值？
Tanzania Agrees $800 Million of Loans for Reserves
Budget Gap
Budget Speech: ESTIMATES OF GOVERNMENT REVENUE AND EXPENDITURE FOR FISCAL YEAR 2015/2016
Second review under the policy support instrument
The Annual General Report of the Controller and Auditor General on the Financial Statements for the Year ended 30th June 2015
China's Overseas Development Finance
中国和南非分别向坦桑尼亚银行贷款2亿美元和6亿美元
IDS_Average interest on new external debt commitments
IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments
DRS Official Commitments from China Through 2021 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.