African Development Fund approves $ 116 million to upgrade road corridor in Tanzania


The African Development Fund board on Wednesday approved a loan of around $ 116 million to the Tanzanian government to modernize a 160 km Mnivata-Newala-Masasi road corridor in the south of the country.

The Bank loan represents 98.71% of the project cost; the Tanzanian government will provide the remaining 1.29% of the funding.

The project will upgrade the causeway, including the 84-meter Mwiti Bridge, to a bituminous standard. The works also include social components, in particular the provision of drinking water, educational and medical infrastructure, the establishment of cashew processing units and the extension of entrepreneurial training to women and young people.

The modernization is expected to open up the rural areas of the region and improve the Mtwara Development Corridor, which connects the port of Mtwara and the port of Mbamba Bay on Lake Nyasa. Exporters, importers, small cross-border traders, farmers and transporters should all benefit.

“Periodic isolation of such a large population exacerbates vulnerability and compromises social inclusion. Improving road connectivity would therefore strengthen the resilience of the population and expand livelihood opportunities in the Mtwara development corridor and surrounding districts, ”Nnenna Nwabufo, Bank Managing Director for East Africa. noted.

Overall, the five-year project will improve the mobility and accessibility of about 1.1 million people in the districts of Mtwara, Tandahimba, Newala and Masasi and facilitate integration with Mozambique, Malawi and the Neighboring Zambia.

Currently, Tandahimba and Newala districts, with a combined estimated population of 509,000, are mostly cut off, while connection with the Mtwara port area for essential supplies is severely limited during the rainy seasons due to the state of the road.

The project will advance Tanzania’s current five-year development plan (2021-2026) and aligns with the Bank Group Country Strategy Paper (2021-2025) which emphasizes sustainable infrastructure for a sustainable economy. competitive and improved private sector business environment for job creation, as well as two High-5 strategic priorities: Integrating Africa and Improving the quality of life of Africans.

As of June 30, 2021, the Bank Group’s active portfolio in Tanzania comprised 22 operations (19 public and 3 private) with a total commitment of approximately $ 2.4 billion.


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