The Board of Directors of the African Development Bank Group announced that it had this week approved two loans to Cameroon to improve transport links with neighbouring Chad, with major economic benefits for both countries.
According to a statement received by APA on Friday, the loans – €318.24 million and €12.24 million are for the implementation of the fourth phase of the Transport Sector Support Programme – Rehabilitation of the Douala-N’Djamena-Ngaoundéré-Garoua economic corridor (PAST 4).
The largest loan is from the Bank Group, while the €12.24 million comes from the African Development Fund, the Bank Group’s concessional lending window.
“The political decision by the Cameroonian authorities to continuously improve the level of service on the 2,100km Douala-Ndjamena corridor is justified by the fact that it accounts for almost 35 per cent of the country’s GDP and serves 35 per cent and 20 per cent of the populations of Cameroon and Chad respectively,” said Serge N’Guessan, the African Development Bank’s Managing Director for Central Africa.
According to Mr Nguessan, the rehabilitation of the most deteriorated section, between Ngaoundéré and Garoua, will help improve the performance of Cameroon’s road network to encourage private participation and investment in the agro-industrial, transport and logistics sectors along the Douala-N’Djamena corridor. It will also facilitate cross-border trade.
The fourth phase of PAST builds on the success of the previous phases and proposes an integrated approach to the development of the Douala-Ndjamena economic corridor. It fills gaps in national infrastructure while strengthening vulnerable communities in the face of climate change impacts.
With a focus on youth empowerment and gender equality, the initiative supports local industries and private sector growth in the promising sectors of agriculture, livestock and agro-industry.
According to its promoters, the programme is strategically developing essential infrastructure to support the government’s forthcoming agro-industrial development plans for the northern region.
The programme’s direct area of impact is the Adamaoua (two departments) and Nord (three departments) regions, with an estimated population of 5.68 million.
On average, women account for 51 per cent of this population, while young people under the age of 20 make up more than half, according to the press statement.
ARD/te/lb/gik/APA