Swedish firms want to fund Tanzania's infrastructure
By MIKE MANDE
The EastAfrican
 
Swedish companies are exploring possibilities of funding infrastructure development in Tanzania.

Representatives from Swedish firms in Kenya and others from Sweden last week said they were in talks with private equity firms and public institutions about infrastructure projects to finance. Torvald Akesson, Swedish ambassador to Tanzania, said that the move would see Swedish firms provide more funding to energy, roads, railways and aviation and working jointly with public and private corporations.

According to Mr Akesson, the firms will promote business opportunities and possible synergies between Swedish industry and Tanzania infrastructural development.

The firms taking part in exploring Tanzania infrastructure development opportunities are; ABB, Alfa Laval, Assa Abloy, Atlas Copco, Ericsson, Hifab International, Scania CV AB, Sweco International and Tetra Pak.

The firms are taking part in a meeting in Dar es Salaam in which they will also discuss the energy crisis in the region, which has severely affected the region’s economy, to come up with short and long term solutions to the crisis.

Swedish exports to Tanzania has almost doubled between 2003 and 2005 to reach $75 million. Swedish assistance to Tanzania for 2006 has reached $95 million.

Arnold Kilewo, former chairman of the East African Business Council, told The EastAfrican last week that Tanzania needs Swedish capital to partner with local investors in the country infrastructure development. Mr Kilewo said that Swedish investors had shown interest in funding hydropower generation at Stigglers Gorge with a potential of producing 2000 MW, capable for lighting up all of Tanzania.

The Swedish-Tanzania infrastructure and urban development forum was organised by the East African Business Council in collaboration with the International Council of Swedish Industry, targeting government officials as well as business executives representing corporations and finance institutions in Sweden and Tanzania.