africa Banking Burundi development Finance Infrastructure Tanzania

Tanzania, Burundi secure $322.35 million for infrastructure development

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AfDB’s mission is to promote the investment of public and private capital in projects and programs

 

East African countries Tanzania and Burundi secure multimillion financial investment from African Development Bank Group (AfDB) to boost infrastructure development in the region. A total of $322.35 million in loans and grants approved by the board of directors will facilitate the 305km road upgrading project.

The multinational road forecast to be completed in 2023 will stimulate economic growth and development between the two nations and the East African bloc as well. The road project is part of the East African roads network geared at facilitating trade and business through access of regional markets within the five East African countries including Tanzania, Burundi, Rwanda, Uganda and the Democratic Republic of Congo (DRC).

Road infrastructure in East Africa is a preferred mode of transport linking people and businesses as it is cheap and easily accessible by traders. However, poor transport networks due to high operating costs and a new market are not exploited for business opportunities. As a result, the remotely accessed areas are underdeveloped, leading to an imbalanced economy have limited the growth of regions such as rural areas and expansion of existing business.

The financial inclusion will be used to build a One Stop Border Post between Tanzania and Burundi, health centres, schools construction, and community water sources. Once inaugurated, the road project will open rural regions for business and investment opportunities as well as reduce vehicle operating cost.

Gabriel Negatu Director General of the Bank Group’s East Africa Regional Development & Business Delivery Office commented, “The project will fundamentally enhance the mobility of goods and services for the people in Burundi and Tanzania. The improved transport will bring additional benefits for the two neighbouring countries, including empowering women, and youth for whom new market centres will be opened and other economic activities will increase.”

Both countries have set infrastructure development as a National Development plan that is able to lure businesses and catapult economic progress.

Source: The Exchange

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