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Thursday, August 31, 2017 

AfDB hits USD 30 billion mark in transport sector funding

AfDB East Africa Regional Hub Director General, Gabriel Negatu


Nairobi-Kenya--The African Development Bank has announced that it has hit USD 30 billion mark in transport sector funding in East Africa and on the continent in general. 

For Example the bank said  in Uganda, USD870 million was lent for 15 projects for 930km of paved roads to benefit Over 16 million beneficiaries, in Kenya USD1, 780 million was lent to 22 projects for 1,720km of  paved roads that benefit over 20 million beneficiaries, in Tanzania,USD1, 580 million was lent to 18 projects for 2,230km of  paved roads to benefit over 27 million beneficiaries,  in Rwanda, USD580 was lent to 13 projects for a 300km of paved road to benefit over 7 million beneficiaries and in Ethiopia, USD1, 380 million was lent to  17 projects for 2,320km of paved roads that benefited over 40 million beneficiaries. 

The African Development Bank has over the last 50 years disbursed loans and grants amounting to USD30 billion to improve transport infrastructure and networks in Africa.

Transportation projects have received the most funding with more than 40,000km of roads paved across Africa. In East Africa, 1,760km of road has been paved in Kenya, 2,230km in Tanzania, 2,320km in Ethiopia, 800km in Rwanda, and 930km in Uganda, among others.

“These roads contribute to the opening up of remote areas in the countries which were isolated and consequently releasing their agricultural and economic potential. Other road projects consolidate important existing traffic routes that enhance regional connectivity, linking capitals and link them to major ports, facilitating trade,” AfDB East Africa Regional Hub Director General, Gabriel Negatu said.

More than 450 transport projects in roads, ports, airports, and railways have been financed by the Bank. The infrastructure investment has facilitated, augmented trade and people mobility while boosting economic growth of beneficiary countries, directly benefiting over 450 million people. 

In the aviation sector, the Bank has supported investments in some 30 airports across the continent. 

In East Africa, Kenya and Ethiopia are the main beneficiaries with Jomo Kenyatta International Airport getting funding for the design of the new runway to be constructed and the Ethiopian Airline received USD 159 million to partly finance Ethiopian Airlines’ expansion plan and fleet modernization program. Addis Ababa Bole International Airport got a new runway and technology for the safety and reliability of air traffic financed by Bank.

As entry points for international trade, marine ports are important elements for the economic competitiveness of African countries. 16 of them have been created, enlarged or modernized through AfDB financing, especially in West Africa. These ports also provide access to the see and link landlocked countries such as Uganda, Ethiopia and Rwanda to markets. The Bank has also supported shipyards in other parts of the continent.

"In order to realize their full potential, transport projects must be complemented by investments in other sectors of the economy," commented the evaluators of the first transport project financed by the AfDB. This holistic approach was adopted by the Bank and its projects have great impact on people's daily lives.

The Bank has prioritized Africa’s infrastructure. However, the deficit is huge standing at USD98 billion which the Bank cannot bridge the gap alone. In this regard, the Bank is championing innovative infrastructure financing through domestic resource mobilization, PPPs, and co-financing.

 

 

By Samson okwakol, Thursday, August 31st, 2017