The Managing Director of Stanbic Bank Tanzania Bashiri Awale has pointed out ?policy stability? as a prerequisite incentive for encouraging investments in infrastructure development in Tanzania.
His remarks are coming in the wake of Standard Bank`s nomination as winner of the African Infrastructure Deal of the Year Award for its leading role in underwriting the USD500m Gautrain project in South Africa.
The award was conferred on the bank at the Africa Investor Projects Summit held recently in Lagos, Nigeria.
Standard Bank trades as Stanbic and its Gautrain project is a private sector funding arrangement that includes a well-structured debt funding package.
The funding deal was arranged by Standard Bank to ensure the optimal balance between risk transfer, shareholder returns and maximizing money for Gauteng Province in South Africa.
A statement from the Bank says the project is the largest infrastructure Public Private Partnership (PPP) ever financed in Africa.
It also is the largest PPP green field-rail-project under construction internationally, and that economic policy stability is the major cause of its success.
The Gautrain project constitutes 80km rail system, running both under and over ground for locomotives designed to travel at a maximum speed of 160km per hour.
It is expected will generate 93,000 jobs during the five years construction period.
Commenting on the coveted prize, Bashiri Awale said it means additional challenge to Stanbic Bank to do more in terms of financing infrastructure development across Tanzania and Africa in general.
Stanbic Bank will remain at the forefront of efforts to develop African infrastructure and the award is an important reflection of that commitment, as long as economic policy stability across different jurisdiction remains stable and predictable over time, he said.
He reiterated that increased PPPs as one of the surest means for tackling poverty and underdevelopment in Africa.
Standard Bank Group is a regional banking with representation in nineteen African countries with 143 years of experience.
SOURCE: GUARDIAN
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