Abu Dhabi Fund for Development (ADFD) has inked a Dh169 million ($46 million) loan agreement to construct a vital 77-kilometer highway linking two of the most important cities in Tanzania: Kidaho and Ovinza.

This road is part of a key highway linking the western part of the country with Dar as Salam in the east.

The loan agreement was signed in Abu Dhabi by Mohammed Saif Al Suwaidi, acting director general of ADFD and  Mohammed Mahraja Jumaa, Tanzania’s Ambassador to the UAE.

“This agreement is well aligned with the directives of Abu Dhabi’s leadership for  assisting developing countries in their economic growth by providing them with necessary funding to implement vital projects,' stated Al Suwaidi.

'This agreement will allow financing a major developmental project in Tanzania. Empowering the country with a modern roadway, that will facilitate the smooth movement between key cities.'

'In addition, this project will facilitate trade activity and merchandise exchange within Tanzania, elevating the living standards of the local population and accelerating social and economic progress.'

“Besides being used for commuting between important cities within Tanzania, the highway links it with neighbouring countries such as Burundi and Rwanda, bolstering the scope for business and commercial activities,” he added.

ADFD has contributed in financing several vital projects in Tanzania valued at Dh63 million.-TradeArabia News Service