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Tanzania’s National Social Security Fund is set to construct a US$40mn, 26 storey commercial building in Nairobi, Kenya
The project highlights the increased cross-border real estate investment in the East African Community. The complex is to be built in upmarket Upper Hill area of the Kenyan capital and will hold the Tanzanian Chancery and a shopping mall.
The Tanzania government will contribute 20 per cent of the project’s share capital while Tanzania’s National Social Security Fund (NSSF) will provide the remaining 80 per cent. Government officials say the commercial building in Nairobi will be used to generate income to cater for other diplomatic missions in the continent in order to reduce operational costs.
Besides the Nairobi building, the state plans to build a US$28mn complex in London. NSSF has also invested US$130mn to construct Kigamboni Bridge, a tourist hotel in Mwanza, Tanzania with a capacity of 122 rooms. Two office complexes have also been set up in Arusha, Tanzania.
The country owns 17 such premises out of 32 foreign missions worldwide. The first investment centres were set up in Washington DC and New York a few years ago.
Officials for NSSF added that plans were underway for the construction of embassies in Kigali in Rwanda, Maputo in Mozambique, Abuja in Nigeria and Kinshasa in the DRC. NSSF’s policy demands that 75 per cent of the operational income goes to investment while the remaining 25 per cent is used to pay members’ benefits and administrative costs.