The African Development Bank (AfDB) has approved loans of US$107 million and US$88 million to Kenya and Tanzania respectively in order to build a modern and more efficient One Stop Border Post between the two countries.
The financing will also cover the construction of a 24- kilometre road from Arusha, Tanzania, to Athi River in Kenya (near Nairobi) which is of strategic importance as it forms part of priority Corridor No 5 of the East African Community Regional Roads Network.
The project is intended to increase trade and stimulate the regional economy while also improving the regional transport infrastructure. According to the AfDB, around 41% of Kenyan exports and 20% of Kenyan imports to and from Tanzania go through the project road.
“Within the context of cross-border cooperation and poverty reduction, the main goal of the bank’s intervention in this sector is to support regional integration, cross-border trade, tourism, and socio-economic development of the zone,” said an AfDB spokesperson.
