Tunisia Secures €80.16M Loan from AfDB to Boost Road Infrastructure and Regional Growth

Tunisia Secures €80.16M Loan from AfDB to Boost Road Infrastructure and Regional Growth

Tunisia Secures €80.16M Loan from AfDB to Boost Road Infrastructure and Regional Growth

The African Development Bank (AfDB) has granted Tunisia a loan of €80.16 million for the third phase of its ambitious Road Infrastructure Modernization Program. The total cost of the project is €86.21 million, with the Tunisian government contributing an additional €6.05 million. This funding aims to modernize nearly 189 kilometers of key classified roads across seven governorates: Kef, Kasserine, Sousse, Sfax, Kairouan, Siliana, and Gafsa. The project, which was approved on December 9, 2024, by the AfDB, addresses long-standing challenges related to deteriorating road conditions that have long hampered transportation and economic development in these regions.

The road upgrade initiative is part of a broader effort to enhance Tunisia’s infrastructure, improve accessibility, and promote regional integration. By upgrading these roads to international standards, the project aims to boost connectivity between rural and urban areas, enhance trade, and facilitate the movement of goods and people. This, in turn, is expected to spur economic growth and create job opportunities, particularly in construction, road maintenance, and other related sectors.

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The road infrastructure program is designed to have far-reaching socio-economic impacts. The transport sector in Tunisia currently contributes 5% to the national GDP and provides employment for around 160,000 people. This new phase will build upon the successes of earlier phases of the project, which saw the modernization of 4,000 kilometers of roads and the construction of vital motorways and bridges. It is also expected to have broader benefits, such as promoting private sector growth, creating new opportunities for small and medium enterprises (SMEs), and improving food security by providing better access to agricultural regions.

One of the key highlights of the project is its focus on job creation for the youth, especially in vulnerable areas. Road construction and maintenance work will generate new employment opportunities, particularly in regions with high levels of unemployment. Furthermore, the upgraded infrastructure will improve access to agricultural areas, helping to enhance the efficiency of food supply chains and bolster food security in the country.

The program also aims to foster regional cooperation, with an emphasis on enhancing cross-border connectivity between Tunisia and Algeria. This initiative is expected to reduce disparities between urban and rural areas while promoting economic inclusion in disadvantaged communities. The AfDB’s funding aligns with its broader goals of improving infrastructure across Africa, contributing to the integration of the continent and improving the quality of life for its people.

The project will run from 2025 to 2030 and will not only focus on road upgrades but also integrate essential infrastructure such as bridges, drainage systems, and proper signage. Additionally, climate-resilient designs will be incorporated into the project to ensure that the roads can withstand extreme weather events and minimize the environmental impact. These efforts underscore the AfDB’s long-term commitment to building sustainable infrastructure that will support Tunisia’s growth and development for years to come.

So, Tunisia’s road infrastructure modernization project represents a significant step forward in the country’s efforts to strengthen its transport sector, promote regional connectivity, and create economic opportunities for its people. With support from the AfDB, this initiative has the potential to bring lasting socio-economic benefits, particularly in underserved areas, while aligning with the broader vision of a prosperous, inclusive, and resilient Africa.

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