Zanzibar secures Sh427 billion loan from South Korea for referral hospital

Zanzibar. Zanzibar is set to receive a significant boost in its healthcare infrastructure, thanks to a groundbreaking loan agreement signed between the Government of Tanzania and the government of the Republic of Korea.

The Minister of State in the Office of the President for Finance and Planning in Zanzibar, Dr Saada Mkuya Salum, witnessed the signing of the agreement, which will provide an a concessional loan of Sh427.16 billion.

The funds will be utilized for the construction of the Binguni Referral Hospital in Zanzibar.

The loan agreement, inked in Seoul, South Korea on June 5, 2024, marks a crucial milestone in bilateral relations between Tanzania and Korea.

The Permanent Secretary in the Ministry of Finance, Dr Natu El-maamry Mwamba, represented the Government of Tanzania in signing the agreement, while the Senior Managing Director and Board Member of Exim Bank – Korea, Mr Hwang Kiyeon, facilitated the agreement on behalf of Korea.

This loan agreement is a direct outcome of the recent visit by President of Tanzania, Samia Suluhu Hassan, to Korea, which commenced on May 31, 2024.

The Binguni Referral Hospital project is poised to transform healthcare delivery in Zanzibar, with plans for four specialized disease units, including a maternal and infant hospital, a Research Center, staff accommodation, procurement and installation of state-of-the-art medical equipment, and the establishment of a communications health system.

Dr Saada Mkuya Salum emphasized that the completion of the hospital construction will significantly enhance access to quality medical services for the people of Zanzibar.

By improving the quality of healthcare services and introducing modern equipment, the project aims to reduce mortality rates and bolster health outcomes.

Furthermore, the establishment of a Training Centre equipped with modern learning facilities will facilitate the delivery of high-quality health education, further strengthening the healthcare ecosystem in Zanzibar.

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