African Development Bank grants €80.16 Million Loan to Tunisia for Road Modernization

The African Development Bank has approved a loan of €80.16 million to Tunisia to finance the next phase of the country’s road improvement program.

The Phase 3 Road Infrastructure Modernization Programme has a total cost of €86.21 million, with the African Development Bank covering 92.98% of the expenses. The remaining €6.05 million will be contributed by the Tunisian government. The bank's Board of Directors approved the funding on December 9, 2024.

A document shared with the Communication for Development and Advocacy Consult (CDA Consult) outlines the program’s aim to upgrade 188.9 kilometers of classified roads across seven governorates: Kef, Kasserine, Sousse, Sfax, Kairouan, Siliana, and Gafsa. These areas face transport challenges due to poor road conditions, which hinder economic development despite their potential.

The African Development Bank’s intervention will enhance Tunisia’s road network, improving transport efficiency and creating favorable conditions for the movement of goods and people. This development is expected to support economic growth and regional integration while creating sustainable employment opportunities.

Key Benefits of the Road Modernization Program

• Economic Impact: The transport sector, which accounts for 5% of Tunisia’s GDP and employs 160,000 people, will see improved efficiency and productivity.
• Job Creation: Upgrades will create jobs for young people and support micro-enterprises focused on road maintenance.
• Agricultural Access: Improved road connections to high-value agricultural regions will bolster food security and enhance agricultural value chains.
• Regional Development: Enhanced infrastructure in border areas, particularly between Tunisia and Algeria, will promote regional balance and reduce youth unemployment in disadvantaged regions.

Solomon Quaynor, the African Development Bank’s Vice President for Private Sector, Infrastructure, and Industrialization, highlighted the bank's contribution over the past decade:

“Over the past 10 years, the African Development Bank has helped to renovate and modernize some 4,000 kilometers of roads and 104 kilometers of motorways in Tunisia. This work has greatly improved the level of service provided by the road network, making routes more convenient and enhancing access to regions with socio-economic potential.”

Quaynor added that Phase 3 of the modernization program would create opportunities for the private sector and small and medium-sized enterprises (SMEs), while also addressing poverty through job creation.

The project aligns with two of the African Development Bank’s High5 operational priorities: “Integrating Africa” and “Improving the quality of life for people in Africa.” These priorities are part of the Bank’s Ten-Year Strategy (2024-2033), which envisions a prosperous, inclusive, and resilient Africa.

The modernization program, running from 2025 to 2030, builds on the successes of the previous two phases, further cementing Tunisia’s path toward sustainable infrastructure development.