The Abu Dhabi Fund for Development (ADFD) has extended a concessionary loan of AED55 million (±USD15 million) to the Government of Tanzania to finance the upgrade of 51km of the Uvinza-Ilunde-Malagarasi road.
The funded project is an extension to Kidaho-Ovinza Road which was funded in 2009 by ADFD as a concessionary loan worth AED169 million (±USD46 million).
The project involves the reconstruction and upgrade of a 51 km, 6.5m wide single-lane carriageway with 1.5 m wide internal and external shoulders that connects the towns of Uvinza and Ilunde with the town of Malagarasi, in western Tanzania.
In addition, ADFD is providing consultancy services for the design and supervision of the works that include the construction of small crossing bridges, culverts and service ducts.
Aimed at enhancing the socio-economic status of rural populations, especially in the Kigoma Region, the road upgrade project seeks to improve the transportation network between former capital Dar es Salaam and the lake port town of Kigoma.
In addition, the project aims at improving international connectivity with neighboring countries Burundi and the Democratic Republic of the Congo (DRC).
During the loan agreement signing ceremony at the ADFD headquarters in Abu Dhabi, his Excellency Mohammed Saif Al Suwaidi, Director General of ADFD said: “The agreement reflects ADFD’s priority to support development projects across vital economic sectors in developing countries, especially the roads and transport sector. The Uvinza-Ilunde-Malagarasi Road upgrade is an important venture that aligns with Tanzania’s efforts to become a semi-industrial country and improve the living standards of its citizens. We are confident that the project will translate into a positive socio-economic impact, and enable the Tanzanian government and people to fulfill their development aspirations.”
From his side his Excellency Eng. Mussa Ibrahim Iyombe, Permanent Secretary to the President’s Office Regional Administration and Local Government, noted that the Government of Tanzania is eager to enhance collaboration with the UAE and ADFD, particularly in infrastructure and other sectors, given their crucial role in promoting sustainable development.
He added that the Fund’s financial support for infrastructure projects, especially in the transport and water sectors, enable the Tanzanian government to overcome the development challenges they face.
ADFD’s contribution to the development of Tanzania dates back to 1977. Since then, the Fund has allocated AED233 million (±USD63.4 million) to finance several projects that serve strategic sectors in the East African country.
Want to know more about Transport in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Transport, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.
Download Free OverviewGet the Full Edition for Free
