Tanzania to bail out companies
Publish Date: Jun 11, 2009
Newvision Archive
  • mail
  • img


Tanzania will spend 1.7 trillion shillings ($1.3b) to compensate companies hit by the global financial crisis, president Jakaya Kikwete said.

Speaking to legislators and elders in the administrative capital Dodoma, Kikwete said the government would guarantee debt rescheduling for some companies in tourism, agriculture and other sectors – and reimburse some losses directly.

“The cost of these measures is 1,692.5 billion shillings. We have put that money in the budget,” Kikwete said.

The global slowdown has hit Tanzanian tourism receipts, its biggest foreign exchange earner, dented demand for its coffee and cotton exports, and prompted foreign investors to suspend significant projects in the mining sector.

The government and analysts polled by Reuters predict 5% growth in 2009, down from 7.4% last year.

Growth is seen rising to 5.7% in 2010 and 7.5% in 2012.

“We will compensate those who got losses in 2008/09. These include cooperatives and companies,” Kikwete said.

“"The government will pay straight away to the banks that lent to them. We will not pay old debts that had nothing to do with the global economic crisis,” he told the meeting.

Other companies struggling with debt from the global slowdown would be helped by rescheduling and repayment holidays.

“We will also guarantee 70% of their debts and postpone repayment for two years,” he said.

“By April this year, 48,000 people had lost their jobs due to this crisis,” Kikwete revealed.
- Reuters

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact

  • mail
  • img
blog comments powered by Disqus
Also In This Section
FORMER president Dr. Apollo Milton Obote has been honoured for his distinguished service to Busoga College Mwiri and the nation....
THE Ministry of Health has appealed to religious groups to counsel men to stop having extramarital sex to stem the raising rates of HIV infections....
THE Chinese community in Uganda on Tuesday celebrated their 62nd independence anniversary....
MAKERERE University has sued the National Insurance Corporation (NIC) over a sh16.7b pension savings package it claims the insurance giant owes it....
PRESIDENT Yoweri Museveni will lead the alumni of the University of Dar-es-Salaam in Uganda to a fundraising drive targeting sh1b for the Tanzania-based institution....
THE UPDF officers, dressed in neatly pressed uniforms complete with gleaming black boots, took to the podium, many accompanied by their spouses. Then, they were decorated....
Do you think Uganda is winning the fight against AIDS?
Can't Say
follow us
subscribe to our news letter