Madagascar: African Development Bank Group grants a $165 million loan to develop roads in Southern Madagascar and facilitate trade
African Development Bank Group Board of Directors (African Development Bank website) has approved a $165 million loan to Madagascar to develop important trade corridors and improve regional connectivity. The funding, secured in Abidjan on December 11, 2024, will support the third phase of major infrastructure projects to improve trade corridors across the country.
Funding will come from the African Development Fund, the World Bank Group’s concessional lending arm. The project aims to contribute to the economic and social integration of the southern region of Madagascar by opening up various areas in the region. It will achieve this by building and operating transport corridors to the rest of the country and across Africa, while strengthening trade facilitation procedures and processes between the ports of Tulear and Beira.
“In the long term, this project will support a significant increase in commercial trade within the country and region, helping to promote investment,” commented Adam Amoumoun, Head of the African Development Bank Country Office in Madagascar. At the same time, the project will also 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 market access. “
Solomon Quina, World Bank Group Vice President for Private Sector, Infrastructure and Industrialization, highlighted the project’s transformative impact on the future of southern Madagascar, saying: “By improving critical road infrastructure, we are not just building roads; “These roads will also open lifelines for economic opportunity and social progress, directly connecting rural communities to markets, healthcare and education, while indirectly inspiring entrepreneurship, promoting trade and empowering women and youth through sustainable employment.”
The project will improve major road infrastructure in two regions of southern Madagascar: Atsimo Andrefana and Menabe. These include upgrading a 78-kilometre stretch of road between Bevoay and Morombe, which passes through an important agricultural area that produces 29,000 tonnes of crops annually.
A significant part of the project includes the reconstruction of the Manombo Bridge and the construction of two new 460-metre-long two-lane bridges to enhance road connectivity. These improvements will create smoother transportation routes and strengthen Madagascar’s national economy.
In addition to the physical infrastructure, the project aims to benefit multiple stakeholders. It will support customs operations, port activities, trading businesses, local consumers and the wider economic ecosystem, including the research and technology sectors.
Distributed by APO Group on behalf of the African Development Bank Group (AfDB).
Media contact information:
Alexis Adele
Department of Communications and External Relations
media@afdb.org
About the African Development Bank Group:
The African Development Bank Group (AfDB) is the premier multilateral financing institution dedicated to Africa’s development. It consists of three different entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NSF). The African Development Bank has field presence in 41 African countries and an external office in Japan, contributing to the economic development and social progress of its 54 regional member countries. For more information: African Development Bank website
