Tanzania and South Korea agree to $2.5bn infrastructure and technology deal

Tanzania and South Korea have agreed to accelerate a $2.5 billion commitment to finance strategic projects across transport, technology, industry, health, and culture. During talks in Seoul with Korea Eximbank, Tanzanian Finance Minister Khamis Mussa Omar emphasized the need for closer coordination to prevent delays in feasibility studies and engineering designs that have previously hindered project implementation.

Domestically, Tanzania is pushing for increased investment in digital infrastructure to support its National Development Vision 2050. The 2026/27 ICT budget is set at approximately $90 million, with significant allocations for rural communication towers and the National ICT Broadband Backbone. The government is also seeking private capital to bolster its digital economy.

Economic efforts are further focused on increasing value addition in agriculture to boost export earnings and state-owned enterprises (SOEs) are developing new strategies to support the country’s goal of building a $1 trillion economy. Additionally, the East African Business Council has called for the removal of regulatory barriers to unlock services trade within the East African Community.