The African Development Bank Group has approved $500 million in funding for two major transport infrastructure projects in Tanzania, targeting critical gaps in the Trans-African Highway network.

The first allocation — a $179.97 million loan and $10 million grant from the African Development Fund — will finance the multinational Dodoma-Babati Road and Transport Facilitation Project. Spanning 257 kilometres, the corridor will connect Dodoma to Babati and onward to Arusha, creating an upgraded road link between Tanzania and Kenya. The project is expected to benefit approximately 3.5 million people and reduce vehicle operating costs by an estimated 25 percent.

The second project, backed by a $310 million loan, will construct a 42-kilometre bypass around Arusha City and upgrade the 17-kilometre Sakina-Tengeru road to a dual carriageway. The bypass addresses chronic urban congestion while improving connectivity to regional destinations, including major tourist circuits.

"These two projects will be transformative for Tanzania and the wider East African region," said AfDB Director General for East Africa Nnenna Nwabufo. "They will not only improve the quality of transport infrastructure but also enhance trade competitiveness and create sustainable livelihoods for communities along the corridors."

Both projects are scheduled for implementation over six years, with construction beginning in 2026. The funding includes provisions for environmental and social safeguards, institutional capacity building, and the development of roadside facilities.

Tanzania's Minister for Works and Transport, Prof. Makame Mbarawa, said the funding demonstrates confidence in Tanzania's development agenda and complements ongoing government efforts to modernise the national road network.