Kenya & Tanzania: Over 3 Million People To Benefit From African Development Bank’s €345 Million Road Construction Support

Whilst not a railway.. The road is a key component of the East African transport corridor network, connecting Kenya and Tanzania.

The total amount of co-financing is expected to be more than $ 1.2 billion when subsequent phases of the project are concluded

Over three million people in Tanzania and Kenya will benefit from a €345 million financing package for road construction support, recently approved by the African Development Bank’s board in Abidjan.

The Bank’s support for the Mombasa-Lunga Lunga/Horohoro and Tanga-Pangani-Bagamoyo roads Phase I, is in the form of African Development Bank and African Development Fund loans and represents 78.5% of the total €399.7 million project cost. The European Union contributed a grant of €30 million, 7.7% of the total project cost, to the government of Kenya.

The road is a key component of the East African transport corridors network, connecting Kenya and Tanzania. Producers, manufacturers and traders will be able to move goods more quickly and cheaply. In addition, farmers and fishermen will benefit from improved access to local and regional markets and amenities, including better schools and health centres.

“The project will have benefits for hinterland countries such as the Democratic Republic of the Congo, Burundi, Rwanda, Uganda and South Sudan that depend on Mombasa as gateway to global markets,” said Hussein Iman, the Bank’s Regional Sector Manager for infrastructure, private sector, and industrialisation.

The Bank’s support will also provide roadside trading facilitates for sellers, half of them women who currently operate in disorganised and unsafe conditions.

The road crosses regions with high rates of youth unemployment. In light of this, the project includes a vocational training component for 500 unemployed youth (half of them women) to acquire marketable skill and improve their economic prospects.

The Bank anticipates that the intervention will boost regional integration by reducing transit times, facilitating trade and the cross-border movement of people, opening access to tourist attractions. The project will also link the ports of Dar es Salaam, Tanga and Mombasa, and stimulate the blue economy in coastal areas.

This first phase involves the construction of 175km of road sections: the 121 km Mkanga-Pangani road section in Tanzania and the 54km Mombasa-Kilifi road section in Kenya.

The intervention is a priority item in the Bank’s Eastern Africa Regional Integration Strategy (EA-RISP), the Country Strategy Papers (CSPs) of both countries and aligns with two of the Bank’s High 5 priorities - Integrate Africa and Improve the quality of life for the people of Africa.

Regional integration is a priority for Kenya, and Tanzania. However, poor infrastructure has been a major constraint.

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