On January 6, 2025, the African Development Bank (AfDB) announced a significant financial commitment to Tunisia, granting a loan of €80.16 million aimed at upgrading road infrastructure across seven governorates. This initiative is part of a broader effort to enhance connectivity and stimulate economic growth within the country.
Project Overview
The plan aims to upgrade 188.9 km of classified roads in seven governorates: Kef, Kasserine, Sousse, Sfax, Kairouan, Siliana and Gafsa, where substantial economic potential remains unrealized due to transport constraints largely as a result of the poor condition of roads.
The Bank’s intervention will help to improve the quality of Tunisia’s road network and conditions for road users in the target areas. It will help to create an efficient and sustainable transport system, which can support growth and create favourable conditions for the movement of goods and people in and between Tunisia’s regions.
The transport sector plays an important role in the Tunisian economy, accounting for about five percent of GDP and providing 160,000 jobs, directly and indirectly.
The project is set to run from 2025 to 2030 and represents the next phase of the Road Infrastructure Modernization Programme. This programme has previously seen two successful phases aimed at improving road conditions and connectivity in Tunisia.
Importance of Road Infrastructure
Roads play a vital role in Tunisia’s economy, facilitating the movement of people and goods. Currently, approximately 80% of goods transported within the country rely on road networks. However, many regions suffer from inadequate and poorly maintained roads, which hampers economic activities and access to essential services such as education and healthcare.
According to the World Bank, improving road connectivity is crucial for enhancing the economic situation of underdeveloped regions in Tunisia. The new funding will target these areas specifically, aiming to link them with economic growth centers like Sousse. This strategic enhancement is expected to encourage private sector investment and create job opportunities in construction and related industries.
Expected Outcomes
- Improved Connectivity: The project aims to enhance road safety and reduce travel times between key urban centers and rural areas.
- Economic Growth: By improving access to markets, the project is expected to stimulate local economies and attract investments.
- Job Creation: Direct employment opportunities will arise from construction activities, with long-term benefits as improved roads facilitate business growth.
- Sustainable Development: The initiative aligns with broader goals of sustainable development by addressing infrastructure deficits that hinder economic progress.
Contextual Background
This loan marks a significant re-engagement by the AfDB in Tunisia’s road sector after over a decade of absence. The importance of this project cannot be overstated; it represents a critical step towards addressing the infrastructure gap that has long plagued the nation. Previous investments have shown that enhanced transport infrastructure can significantly reduce economic disparities across regions.
The African Development Bank's €80 million loan for road infrastructure upgrades is poised to make a transformative impact on Tunisia's economy. By improving connectivity and fostering regional development, this project not only addresses immediate infrastructural needs but also lays the groundwork for sustainable economic growth in the years to come.
