In a bid to bolster inter-trading in Tanzania, the government has obtained an additional loan of about $15 million from Abu Dhabi, capital of the United Arab Emirates (UAE), to upgrade road networks in the country.
In April, The Abu Dhabi Fund for Development (ADFD) gave a $14.9 million loan to the government of Tanzania to reconstruct and upgrade 51 km, 6.5m wide single-lane carriageway with 1.5 m wide internal and external shoulders that connects the towns of Uvinza and Ilunde with the town of Malagarasi, in western Tanzania.
This project is an extension of a road project linking Kidaho to Ovinza which was funded in 2009 by ADFD as a concessionary loan worth $46 million.
During the signing ceremony, Director General of ADFD, Mohammed Saif Al Suwaidi, said, “The agreement reflects ADFD’s priority to support development projects across vital economic sectors in developing countries, especially the roads and transport sector.
“The Uvinza-Ilunde-Malagarasi Road upgrade is an important venture that aligns with Tanzania’s efforts to become a semi-industrial country and improve the living standards of its citizens. We are confident that the project will translate into a positive socio-economic impact, and enable the Tanzanian government and people to fulfill their development aspirations.”
The project for which the loan was taken will be a massive boost to international connectivity as it is expected to link Tanzania with Burundi and DR Congo.
ADFD has since 1997 contributed over $63.4 million for the financing of several infrastructural projects in Tanzania.