African Development Bank Grants $342.92 Million Loan to Cameroon
The loan aims to enhance the efficiency of the Cameroon-Chad Transport Links.
The African Development Bank Group’s Board of Directors has approved two loans for Cameroon totalling $342.92 million. These funds are designated to significantly improve transport infrastructure along the Douala-N’Djamena trade route, fostering enhanced connectivity with neighbouring Chad. This development is expected to deliver substantial economic benefits for both nations by strengthening trade, logistics, and private sector growth.
The financing includes $330.06 million from the Bank Group’s resources and $12.86 million from the African Development Fund, the concessional arm of the Bank Group. These loans will support the implementation of the fourth phase of the Transport Sector Support Program, focusing on the reconstruction of the Ngaoundéré-Garoua section of the Douala-N’Djamena trade route. This route, spanning over 2,100 kilometres, is a crucial economic lifeline for both countries.
The Douala-N’Djamena trade route accounts for nearly 35% of Cameroon’s GDP and supports the livelihoods of a significant portion of the population in both countries—approximately 35% of Cameroonians and 20% of Chadians. The program will address critical infrastructure deficits, particularly in the heavily deteriorated Ngaoundéré-Garoua section.
Serge N’Guessan, the African Development Bank’s Director General for Central Africa, emphasised the critical significance of the route, stating,“The Cameroonian authorities’ commitment to enhancing the 2,100 km Douala-Ndjamena corridor reflects its significance, accounting for nearly 35% of Cameroon’s GDP and serving 35% and 20% of the populations of Cameroon and Chad, respectively.”
N’Guessan added, “Rehabilitating the severely deteriorated Ngaoundéré-Garoua section will boost the performance of Cameroon’s road network, fostering private investment and participation in agro-industrial, transport, and logistics sectors along the corridor. Additionally, it will facilitate cross-border trade.”
Phase Four of the program builds on the success of earlier stages, adopting an integrated approach to transform the Douala-Ndjamena trade route. The initiative addresses infrastructure gaps, enhances climate resilience in vulnerable communities, and supports national development goals.
The Key objectives of the program include empowering youth, promoting gender equality, and fostering the growth of local industries in agriculture, livestock, and agro-industry. This initiative also prioritises the development of critical infrastructure to support Cameroon’s future agro-industrial expansion plans in the northern region.
