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December 15, 2024
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AFDB GROUP GRANTS $165M LOAN TO DEVELOP ROADS IN MADAGASCAR

December 12, 2024December 12, 2024 - by David Agba

The Board of Directors of the African Development Bank Group (AfDB) has approved
a $165 million loan to Madagascar to develop critical trade corridors and
improve regional connectivity. The funding, granted on Wednesdaay in Abidjan,
will support the third phase of a major infrastructure project to improve trade
corridors across the country.

Funding will be sourced from the African Development Fund, the Bank Group’s
concessional lending arm. The project aims to contribute to economic and social
integration in the southern part of Madagascar by opening up every part of the
region. It will achieve this by building and operationalising transport
corridors to the rest of the country and Africa as a whole while strengthening
trade facilitation procedures and processes between the ports of Tuléar and
Beira.

“In the long term, the project will support a significant increase in national
and intra-regional commercial trade, helping to promote investments,” said Adam
Amoumoun, Head of the African Development Bank’s Country Office in Madagascar. 
“At the same time, the project will create new economic opportunities for local
people by improving trade in agricultural products, livestock, and fish. It will
contribute to economic growth and poverty reduction in the region by improving
access to markets.

Solomon Quaynor, the Bank Group’s Vice President for Private Sector,
Infrastructure and Industrialisation stressed the transformative impact of the
project in the future of southern Madagascar, stating; “By improving vital road
infrastructure, we are not just building pathways but unlocking lifelines to
economic opportunity and social progress. These roads will directly connect
rural communities to markets, healthcare, and education while indirectly
sparking entrepreneurship, boosting trade, and empowering women and youth with
sustainable employment.”



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