SMEs play an essential role in contributing to development in less-advantaged countries.
That role is even more instrumental where engineering firms are concerned, for they partner with many public and private institutions and organisations to undertake large-scale projects. TEC CUATRO, a case in point, has signed agreements with the consortium that will build an international gauge railway crossing Tanzania from east to west.
This is the first time COFIDES has invested in Tanzania directly through a Spanish company
COFIDES furnished €165 000 to finance the Tanzanian branch’s expenses in 2019 in the form of a joint venture loan to the investor, 75 % from the Fondo para Operaciones de Inversión en el Exterior de la Pequeña y Mediana Empresa [Spanish initials, FONPYME; fund for SME foreign investment operations] and 25 % from the Company’s own assets. The total invested in the project by the firm amounts to €236,000.
TEC CUATRO CEO Fernando Casanovas highlights the “opportunity“ afforded by “accessing a market such as Tanzania’s, where we’re collaborating in large-scale engineering projects such as the 1200-km railway between Dar es Salaam and Mwana“. This SME is presently designing bridges, flyovers and stations for a 400-km section of railway.
The route has the potential to significantly improve the country’s communications and facilitate trade and access to adjacent non-coastal territories.