WASHINGTON, D.C., August 6 -- The International
Finance Corporation (IFC) and Mitsubishi Corporation (MC) have approved
investments of US$2.25 million and US$1.8 million respectively in International
House, the first modern international-quality office complex in Tanzania.
International House will alleviate the severe shortage of business infrastructure
which has constrained local and foreign firms operating in Tanzania. It
will employ state-of-the-art communications systems, PCB-free transformers;
CFC-free refrigeration systems; fire safety measures, earthquake protection
features, as well as modern water supply and sewage disposal systems. In
addition, the project will help fund the rehabilitation of the Dar es Salaam
Botanical Garden, a public park adjacent to the building site.
"This project will help remedy the lack of financing that has hindered
the development of modern business infrastructure in Tanzania," said
Tei Mante, Director of IFC Sub-Saharan Africa Department. "By demonstrating
how private sector investment in the real estate sector can be profitable,
International House will hopefully encourage other companies to look at
opportunities in the country."
The deal marks Mitsubishi Corporation's first investment in Tanzania. It
also indicates the firm's interest in expanding business opportunities
with major international financing institutions and its willingness to
aggressively explore emerging markets.
"The multilateral structure of this deal adds great credibility to
the effort," said Yoshiyasu Mizuno, General Manager of MC's Dar es
Salaam office and manager of the joint venture company established to implement
"Our company is committed to the support of international consortia
that foster development on a worldwide basis. Through the Washington, D.C.
office of MC's subsidiary Mitsubishi International Corporation, we would
like to expand the range of investment opportunities we are pursuing,"
added Sumio Takeichi, an Executive Vice President of Mitsubishi International
IFC's investment consists of a loan of US$1.65 million and an equity investment
of US$600,000. International House will also be owned by Mitsubishi Corporation,
Konoike Construction of Japan, Murray & Roberts Construction of South
Africa, and Tanzania Telecommunication Company, Ltd. The total project
cost is estimated at US$9 million.
Mitsubishi Corporation is Japan's largest integrated trading company, with
total trading transactions of US$174.6 billion in 1995. IFC and Mitsubishi
Corporation have several other joint projects in operation in Brazil, Chile,
Venezuela, and China.
IFC, a member of the World Bank Group, is the largest multilateral source
of equity and loan financing for private sector projects in developing