Abu Dhabu Lend Tanzania USD15 Million for Road Upgrade

Uvinza-Malagarasi ADFD road tanzania

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.

TANZANIA BUSINESS & INVESTMENT GUIDE 2026

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.

Related Posts
Tanzania Private Sector Federation (TPSF) Tanzania Ports Authority (TPA) public-private dialogue 2026 Sea Ports Tariff
Read More

TPSF Public-Private Dialogue on Tanzania 2026 Sea Ports Tariff Highlights Private Sector Concerns Over Trade Costs

The Tanzania Private Sector Federation (TPSF) convened a public-private dialogue on Tanzania’s 2026 Sea Ports Tariff, during which stakeholders raised concerns about rising trade and logistics costs ahead of implementation. The discussions focused on balancing tariff reforms with competitiveness, efficiency, and infrastructure projects, including new berths and the Bagamoyo Port development, to support Tanzania’s competitiveness as a regional trade hub.
Tanzania Transport Minister Mbarawa 100 days Update
Read More

Ministry of Transport Updates First 100 Days of Sixth Phase Government Second Term: Achievements Include TAZARA Rehabilitation Deal, 838,000 Rail Passengers and New Infrastructure

Tanzania’s Ministry of Transport outlined achievements recorded during the first 100 days of the government’s second term, including transport of more than 838,000 rail passengers and over 85,000 tonnes of cargo. The update also confirms the signing of the Tanzania-Zambia Railway (TAZARA) rehabilitation agreement set to start in June 2026, and the launch of a vessel with capacity for 1,200 passengers and 400 tonnes of cargo.