(Ecofin Agency) - Tanzania has initiated talks with Swiss banking group Crédit Suisse which is headed by Tidjane Thiam, regarding a $300 million loan to finance infrastructure projects, Minister of Finance, Philip Mpango, announced on December 31, 2016.

“The government has initiated negotiations with Credit Suisse in the United Kingdom for a loan of $300 million following recent improvements in the cost of borrowing in European markets,” he said in a statement.

Mpango added that Tanzania was negotiating with other lenders such as the Kuwait Fund for Arab Economic Development, the Abu Dhabi state fund Mubadala Development and the OPEC Fund for International Development (OFID) for an undisclosed amount of loans.

The Eastern African country plans to get non-concessional external loans worth $936 million in 2016/2017 (July to June) to finance public spending.

Tanzania’s President John Magufuli, who was formerly minister of Public Works, promised to launch major infrastructure projects, including railways, a new port and a pipeline. A delegation of the International Monetary Fund (IMF) which was in Dar Es Salaam last October told the government to prioritize the financing of infrastructures to support its growth.

The government recently announced it forecast economic growth at 7.5% in 2017 and 7.9% in 2018, against 7.2% in 2016.