June 20, 2026
Uchumi Daily > News > Economics > Tanzania Obtains $65 Million World Bank Loan to Rehabilitate Roads Damaged by El Niño

Tanzania Obtains $65 Million World Bank Loan to Rehabilitate Roads Damaged by El Niño

Tanzania has secured a concessional loan worth $65 million from the World Bank to support the rehabilitation of roads and transport infrastructure damaged by the severe El Niño rains that affected the country in 2024.

The funding will be used to restore critical road networks that were heavily impacted by flooding and extreme weather conditions, which disrupted transportation, trade activities, and access to essential public services in several regions.

According to officials overseeing the rehabilitation programme, repair works are already underway in different parts of the country, with significant progress reported. Authorities aim to complete the remaining projects by September 2026 as part of a broader effort to strengthen transport connectivity and improve resilience against future climate-related disasters.

The road restoration initiative is considered vital for Tanzania’s economy, as road transport remains the primary means of moving goods and people across the country. Damaged infrastructure had created challenges for businesses, farmers, and local communities, affecting the movement of products to markets and limiting access to healthcare, education, and other services.

The concessional nature of the World Bank financing offers Tanzania favourable repayment terms, allowing the government to undertake the reconstruction programme while reducing pressure on public finances.

The investment is expected to improve mobility, support economic recovery in affected areas, and enhance the reliability of key transport corridors that play an important role in domestic and regional trade.

Government officials have emphasized that restoring the damaged infrastructure is essential not only for economic growth but also for protecting communities from the long-term impacts of increasingly frequent extreme weather events.