Dodoma: Local contractors (indigenous) now have easy access to capital to implement road infrastructure construction projects on time and efficiently.
They are accessing the capital through a special bond established by the Tanzania Rural and Urban Roads Agency (TARURA) in collaboration with CRDB Bank.
The first bond in the infrastructure sector in the country aims to facilitate the implementation of rural and urban road projects through the participation of indigenous contractors.
Its name is Samia Infrastructure Bond, it was officially launched on November 29, 2024 by the Vice President of the United Republic of Tanzania, Dr. Philip Mpango. TARURA’s Chief Accountant, CPA Jacob Nyaulingo, said in this special interview that, The idea of ​​establishing the bond was given by the Minister of State, President’s Office, TAMISEMI, Mr. Mohamed Mchengerwa.
“The initial target was to collect 150 billion shillings but due to the overwhelming response from Tanzanians to support these efforts, the target of collecting was exceeded from 150 billion to 323 billion shillings, equivalent to 215.4% of the target,” he said.
The bond carries an interest rate of 12 percent per annum and the funds raised have been channeled directly to the implementation of road projects under TARURA.
“To ensure that the funds reach contractors quickly and without bureaucracy, a special digital system called Samia Infrastructure Bond has been established”, he said.
He added “The portal, developed by TARURA in collaboration with CRDB, enables contractors to submit loan applications online.
“This system eliminates the hassle of traveling and signing documents at various TARURA offices and banks.
“Instead, contractors fill out applications online, which are sent directly to TARURA region for verification before being sent to CRDB for final financial steps”, he said.
According to CPA Nyaulingo, this system has been developed with the aim of increasing efficiency and transparency in the loan process.
He said among the products available through this system include Bid Guarantee, Performance Guarantee, Advance Payment Guarantee, Retention Guarantee, Certificate Discounting and the brand new Bridge Financing service, which aims to provide the contractor with quick capital before contract payment.
In a move to facilitate more contractors, CRDB has decided to provide the loans without collateral, while charging a low interest rate of less than 15 percent per annum to contractors who pay on time.
“We call on all contractors in the country to seize this great opportunity. It is time to implement road projects effectively, on time and using the best technology that enables quick access to funds”, he said and added.
“Through this system, we believe the infrastructure sector will make significant strides and support the growth of the national economy,” said CPA Nyaulingo.
He stressed that this bond program demonstrates the government’s commitment to strengthening private sector participation, accelerating road development and raising local incomes through real opportunities for the implementation of strategic projects.
