Tanzania to use natural resources as collateral for development financing, President Samia says

Dar es Salaam. President Samia Suluhu Hassan has announced that Tanzania will begin using its natural resources, such as minerals, to access financing for development projects.

This move is intended to offset any potential shortfall in donor confidence and accelerate the country's mega-infrastructure agenda.

President Hassan made the announcement while instructing newly sworn-in ministers to work relentlessly to deliver on the promises made by the ruling party, CCM, during the election campaigns.

Speaking on November 18 after administering the oath of office for 27 Cabinet ministers and 29 deputy ministers in Dodoma, President Hassan emphasised that their new positions were for public service, not personal prestige.

"Those of you who now think that because you are a minister then you have got an opportunity to brag around, be careful. We are watching you. Tanzanians want to see results," she noted, issuing a stern warning.

She cautioned the new appointees that their tenure would be challenging due to the anticipated shortage of financial resources from development partners, referencing recent events that have seemingly tarnished the country's record.

"In my first term, we could secure financing from development partners because of our record. But now, what happened in our country has tarnished our record, so we have the huge task of mobilising domestic resources ourselves," she said.

Natural resources as collateral

President Hassan asserted that this is the time for Tanzania to utilise its domestic resources to implement crucial infrastructure projects without waiting for external support.

"We will start implementing grand projects ourselves using domestic funds. We will not wait for the development partners. Their funds will find us already ahead with the projects," she affirmed.

She reiterated a key policy point from her speech during the official opening of Parliament in Dodoma on November 14, confirming that the government will begin using its natural resources as collateral to secure funds for projects.

During her parliamentary address, President Hassan said: "We will strengthen capital markets by encouraging domestic investment and use our resources, such as minerals, to back investment loans, rather than placing a heavy burden on the national debt."