African Development Bank reaches US$30 billion in infrastructure investments in East Africa

African Development Bank reaches US$30 billion in infrastructure investments in East Africa

The African Development Bank has made total commitments of more than US$30 billion to infrastructure projects in East Africa, the bank’s director general and regional head, Gabriel Negatu, announced today.


Funding from the bank for around 450 projects over the last 50 years has led to nearly 8000 kilometres of road laid across Kenya, Tanzania, Ethiopia, Rwanda and Uganda, according to the bank’s latest financing impact assessment.

“These roads contribute to the opening up of remote areas in the countries which were isolated and consequently releasing their agricultural and economic potential,” Negatu said.

The bank’s funding for the road projects consolidate important existing traffic routes that enhance regional connectivity by linking national capitals to major ports, facilitating trade and tourism.

A natural road yet to be developed in Kenya, East Africa

In the aviation sector, the bank has financed investments in some 30 airports in Africa. Kenya and Ethiopia are the main beneficiaries in East Africa, with Nairobi’s Jomo Kenyatta International Airport set to receive funding for a new runway.

Air transport, which Negatu said plays “a tremendous role” in the development of East African countries, has provided territorial cohesion and facilitated mobility and trade among people, good and services. The banks claims airports have enabled economies in East Africa to transport sensitive exports such as fresh flowers and other horticultural goods to countries in Europe. They also allow for rapid responses to emergencies through the provision of food and medical aid.

The bank committed US$40 million for the rail network that runs from Mombasa Port in Kenya to the Ugandan capital in Kampala, with a branch to Pakwach in northeastern Uganda.

As entry points for international trade, marine ports are important elements for the economic competitiveness of African countries. Sixteen of them have been created, enlarged or modernised 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 beyond their borders.

 Original source: DevFin.
Posted on 31 August 2017.