The African Development Bank Group (AfDB) has approved two loans to Cameroon, amounting to €318.24 million and €12.24 million, to enhance transport co
The African Development Bank Group (AfDB) has approved two loans to Cameroon, amounting to €318.24 million and €12.24 million, to enhance transport connectivity with Chad through the fourth phase of the Transport Sector Support Programme (PAST 4).
This initiative focuses on the reconstruction of the Douala-N’Djamena Economic Corridor, specifically the Ngaoundéré-Garoua section, which is critical for economic integration and cross-border trade between the two nations.
Funding sources include €318.24 million from the AfDB Group and €12.24 million from the African Development Fund, the concessional lending arm of the AfDB. The 2,100 km Douala-N’Djamena corridor contributes 35% of Cameroon’s GDP and supports 35% of Cameroon’s and 20% of Chad’s populations.
Cross-border trade
The renovation of the deteriorated Ngaoundéré-Garoua section aims to enhance the corridor’s efficiency, fostering private investment and agro-industrial growth while promoting cross-border trade. PAST 4 builds on the success of earlier phases, employing a holistic strategy to boost infrastructure and regional economic development.
The project focuses on Adamaoua and Nord regions, impacting 5.68 million people, with women comprising 51% of the population and youth under 20 years old exceeding 50%. According to Serge N’Guessan, Director General for Central Africa at the AfDB, the project reflects Cameroon’s strategic focus on enhancing the service quality of this vital corridor to unlock economic potential for both Cameroon and Chad.
Economic and Social Benefits of the project include; Improved road network performance, increased agro-industrial, transport, and logistics investments, enhanced cross-border trade and economic integration and greater opportunities for women and young people, who form a significant part of the population.