Governments in the East African region have placed their bets in investing in infrastructure in a bid to increase their competitiveness and reach their full potential. In the last two decades the region has invested heavily in infrastructure including broader connectivity, electricity connection, and airport expansion among other mega projects.
One of the major investment partners in these projects is the African Development Bank (AfDB). The AfDB has poured in billions of dollars in the form of grants and loans as it seeks to help establish the robust infrastructure needed to realise the region’s economic promise.
Over the years, the AfDB has intervened to support the region’s development efforts. As of 2012, total approved national and regional operations amounted to nearly $16.21 billion.
The Bank’s interventions have consisted of a mix of investment projects, capacity-building, and technical assistance, spanning diverse areas such as infrastructure, agriculture, social sectors and private sector development.
Also Read: Africa infrastructure financing passes $100 billion mark
The Bank has also supported the economic reform agendas of the countries aimed at improving governance, public sector management and the business climate, in order to create the conditions for sustained growth and poverty reduction. Region-wide interventions, through regional operations, have supported economic integration initiatives while helping to achieve greater efficiencies.
Over the last two decades, the Bank has intensified its efforts to promote regional integration. Working with Regional Economic Communities (RECs) and governments, it has developed transformative regional infrastructure projects, such as the Mombasa-Nairobi and Addis corridor, Arusha–Namanga–Athi River Roads, the Ethiopia-Djibouti Interconnection, and the East African Submarine Cable System (EASSy).
“Additional regional infrastructure projects are at different stages of preparation. Most of the multinational transport projects blend hard and soft infrastructure — reducing delays in border crossing and customs procedures, as well rehabilitating and constructing regional transport links and port facilities,” the Bank states in its report: The African Development Bank Group in East Africa.
In the last decade, some of the Bank’s major projects include the study of the Kampala–Juba–Addis Ababa–Djibouti Corridor. The project’s main objective is to open an alternative seaport access for South Sudan and Uganda as well as develop road transport infrastructure connecting Uganda, South Sudan and Ethiopia in a bid to enhance regional connectivity.
Other projects include financing the cost of consulting services for the detailed architectural and engineering Design of Manyovu/Mugina One Stop Border Post (OSBP) at the Tanzania/Burundi border crossing.
Also Read: Reforming African economies post pandemic
ROAD PROJECTS
The AfDB has been instrumental in improving sustainable road access and quality transport services. It has financed Road Sector Support Project IV and V whose objectives are improving road access to socio-economic facilities and quality of transport service levels in south-western and eastern parts of Uganda by upgrading the Rukungiri-Kihihi-Ishasha/Kanungu and Bumbobi-Lwakhakha roads from gravel to bitumen standard thereby contributing to improved standard of living of the beneficiaries; support the tourism industry; and promote regional integration and cross–border trade with the DRC and Kenya.
Local economies in the Kampala-Mpiji and Kagitumba-Kayonza-Rusumo area are also beneficiaries of the Bank through its transport services improvement initiatives. Phase one of the Kampala-Jinja expressway is also part of the road improvement projects.
AfDB’s road infrastructure schemes in Kenya include the Nairobi Outering Road Improvement Project currently underway.
The project objective is to improve traffic circulation through expanded road capacity in the city of Nairobi. The project will address the worsening congestion consequently leading to reduced concentration of GHG emissions along the project corridor.
Other ongoing road projects include the Mombasa–Mariakani Road Highway project that is near completion. The project aims to contribute to the improved performance of the economic sectors and the delivery of social services in Kenya and its neighbouring regional partner states such as Ethiopia, Uganda, Rwanda and Burundi by improving the transport network and to contribute to regional integration.
The AfDB is involved in Ethiopia Integrated Transport Project Phase one which entails the construction of Jima-Chinda–Sodo-Sawla road to ease transportation and add value to the logistics chain as well as enhance connectivity and accessibility to and quality of, transport service.
Also Read: EAC gets key roads in Kenya and Tanzania funded by the AfDB board
The AfDB in June 2020 approved a $1.2 million grant to the Ethiopian government to finance a feasibility study for the construction of a standard-gauge railway (SGR) link between Ethiopia and neighbouring Sudan. The railway is aimed at increasing trade relations between the two countries currently facing transport challenges.
The grant will cover 35 percent of the total estimated $3.4 million cost of the study with the remaining funding provided by the NEPAD Infrastructure Project Preparation Facility in the form of a $2-million grant, and by a contribution of $100,000 each from the two countries involved.
In December 2019, the Bank approved support for the Mombasa-Lunga Lunga/Horohoro and Tanga-Pangani–Bagamoyo roads Phase I, through the African Development Fund loan and represents 78.5% of the total €399.7 million project cost. The European Union contributed a grant of €30 million, 7.7% of the total project cost, to the government of Kenya.
The road is a key component of the East African transport corridors network, connecting Kenya and Tanzania. Producers, manufacturers and traders will be able to move goods more quickly and cheaply. In addition, farmers and fishermen will benefit from improved access to local and regional markets and amenities, including better schools and health centres.
Also Read: How Africa will achieve universal electricity access
“The project will have spillover benefits for hinterland countries such as the Democratic Republic of the Congo (DRC), Burundi, Rwanda, Uganda and South Sudan that depend on Mombasa as a gateway to global markets,” said Hussein Iman, the Bank’s Regional Sector Manager for infrastructure, private sector, and industrialization.
The Bank anticipates that the intervention will boost regional integration by reducing transit times, facilitating trade and the cross-border movement of people, and opening access to tourist attractions. The project will also link the ports of Dar es Salaam, Tanga and Mombasa, and stimulate the blue economy in coastal areas.
This first phase involves the construction of 175 km of road sections: the 121 km Mkanga-Pangani road in Tanzania and the 54 km Mombasa-Kilifi road in Kenya.
The intervention is a priority item in the Bank’s Eastern Africa Regional Integration Strategy (EA-RISP), the Country Strategy Papers (CSPs) of both countries and aligns with two of the Bank’s High 5 priorities – Integrate Africa and Improve the quality of life for the people of Africa.
The Bank is also co-financing a $440 million first phase construction of a bridge connecting Mombasa island and Likoni, a major international port area of East Africa. The Mombasa Gate Bridge will be the longest cable-stayed bridge in Africa, providing a critical link over the Indian Ocean along the just approved Mombasa–Lunga Lunga/Horohoro and Tanga-Pangani– Bagamoyo corridor Phase I.
The total amount of co-financing is expected to be more than $ 1.2 billion when subsequent phases of the project are concluded — the largest co-financing agreement between the Bank and the Japan International Co-operation Agency (JICA).
Also Read: Create global partnerships, manufacturers urged
AfDB approved a $272.12 mn loan to Tanzania for the construction of a new international airport in the Dodoma. The new airport will be built in the district of Msalato, 12 kilometres from the capital.
The new facility is expected to handle at least 50,000 aircrafts and a million passengers per year, most of which will be international. It will benefit and serve more than 200 million passengers in East Africa, as well as international trade networks, and especially business travelers and tourists.
ELECTRICITY ACCESS
The AfDB has worked closely with East African governments to provide electricity access to the region.
The Bank indicates that its Uganda Rural Electricity Project, at an expected cost of $121 million will connect over 58,000 rural households, 5,320 business centres and 1474 public institutions and SMEs in 16 districts to improve public institutions, and businesses by providing them access to modern reliable energy.
AfDB is also funding the Last Mile Connectivity Project in Kenya and targets reaching about 1.2 million people living in close proximity to these transformers by aiming to get the most out of the 35,000 distribution transformers across the country.
The project will benefit those in rural areas and low income groups, as well as small businesses through providing increased electricity access. It will contribute to improvement in standards of living of the targeted households in terms of education, health and access to information. As for small businesses, the project will help increase the competitiveness and expansion of activities.
Active also in Ethiopia, the AfDB has funded the Addis Ababa Transmission and Distribution System and Rehabilitation and Upgrading Project covering the capital Addis Ababa and its environs and targeting an estimated population of 4.5 million inhabitants.
“The project will also contribute to improve and strengthen power supply to the surrounding urban areas where power shortages (due to electricity supply network limitation) have affected the provision of vital social services, including health delivery and water supply,” AfDB says.
As at the end of November 2019, the Bank’s portfolio in Kenya comprised 27 public and seven private operations with a total commitment of €2.7 billion; in Tanzania it comprised 21 public and two private operations with a total commitment of €1.82 billion.
