AfDB Finances a USD 70 M Agricultural Project in Egypt and a USD 36 M Road Project in Togo
Written by Joachim Arrey
Meeting in a regular session on Wednesday, January 13, 2010, in Tunis, the Boards of Directors of the African Development Bank (AfDB) Group approved a loan of USD 70 million and a grant of UA 600,000 to finance projects in Egypt’s agricultural sector, as well as a UA 23.31 million African Development Fund (ADF) grant to Togo, equivalent to USD 36,6 million.
The project in Egypt will, in particular, finance the Rural Revenue and Economic Situation Improvement Project (RIEEP). The project targets small agricultural farmers as well as the working poor. Some 5,000 small businesses will be financed through this project. According to AfDB estimates, some 60,500 jobs will be created through this project.
Egypt has adopted a national development plan for the period 2007-2012 which provides for the creation of some 750,000 jobs annually. The AfDB loan will therefore go a long way in helping the country attain this objective. The UA 600, 000 grant approved by the AfDB Boards of Directors from the Middle Income Country and Technical Assistance Fund will be used to finance part of the project.
The UA 23.31 million (36,6 million USD) grand to Togo aims to finance the Rehabilitation and Modernization of the Aflao-Sanve Conji-Benin boarder road (Lome-Avepozo Port Roundabout). The road, most of which will be in urban areas, is part of the Abidjan-Lagos corridor which is a top priority of ECOWAS’ regional program for transport facilitation. The Togolese section of the road is estimated at 52.7 Km, 28.7 Km of which is in good state following rehabilitation in 1998 and 2000 with IDA (International Development Association) financing.
Due to its deep seaport, Togo is one a very important transit point. This explains why improving the service levels of roads between the various states and sections of the road within urban areas constitute a high priority to the Togolese government. The AfDB contribution will enable Togo to play a key role as a trade corridor for landlocked countries such as Burkina Faso, Mali and Niger, as well as for other countries such as Ghana and Benin Republic.
1 Unit of Account (UA) = 1,57 USD as of 13 January 2010