AfDB commits $2.5 billion to boost Tanzania’s infrastructure development

By Business Insider Reporter

Dr Akinwumi Adesina, the outgoing President of the African Development Bank (AfDB), steps down after serving two consecutive five-years terms since his election in 2015. During his tenure, he championed the Bank’s High 5 development priorities – Light Up and Power Africa, Feed Africa, Industrialise Africa, Integrate Africa and Improve the Quality of Life for the People of Africa – leaving behind a legacy of accelerated infrastructure growth, financial innovation, and strengthened regional cooperation.

The African Development Bank (AfDB) has announced a substantial commitment of US$2.5 billion to finance key infrastructure projects in Tanzania, marking a significant step toward enhancing the country’s transport and regional connectivity.

More than 70% of the funding will be directed toward transport-related developments, including the construction and rehabilitation of roads, railways, and airports. The initiative is part of AfDB’s broader strategy to strengthen East Africa’s logistics and trade networks.

According to Eng. Mumina Wa-Kyendo, Chief Transport Engineer at the AfDB Tanzania Office, the investment will focus on priority upgrades aimed at improving mobility and cross-border trade, aligning with regional integration goals.

One of the flagship projects under this financing package is the Tanzanian section of the 400-kilometre Coastal Transport Corridor, which spans from Bagamoyo to Malindi in Kenya through Pangani–Tanga–Horohoro/Lunga Lunga and Mombasa.

AfDB has allocated US$100 million to this segment. Once completed, the road is expected to cut the travel distance between Dar es Salaam and Tanga by 90 kilometers, significantly improving coastal access and boosting trade.

Other major projects include:

Development of road infrastructure in western and southern Tanzania
Extension of the Tabora–Kigoma–Uvinza railway line to Burundi
Construction of Msalato International Airport in the capital city Dodoma

A senior official at the East African Community (EAC), highlighted that the bank’s support complements ongoing efforts by member states and other development partners to expand and modernize East Africa’s transport corridors.

“These investments are key to unlocking regional economic growth and facilitating greater integration,” she said.

With this latest funding, AfDB reaffirms its role as a pivotal development partner in Tanzania, advancing sustainable infrastructure that underpins long-term economic transformation.

As of June 2024, the AfDB had approved 25 projects in Tanzania, with a total commitment of US$3.48 billion. These projects span various sectors, including transport, energy, agriculture, and water resources, reflecting the AfDB’s comprehensive support for Tanzania’s development agenda.

Source: idev.afdb.org