On 18 June 2022, the towns of Bezavona and Fort-Dauphin in the south of Madagascar hosted the launch of major road works financed by the European Union, the European Investment Bank (EIB), the African Development Bank Group and the Republic of Madagascar.
In 2021, the European Union set up the Global Gateway, a new strategy to develop smart, clean and secure links in the digital, energy and transport fields and to strengthen health, education and research systems worldwide. The strategy aims at reducing the global investment deficit and chimes with the commitment made by G7 leaders in June 2021 to set up a value-based infrastructure partnership with high and transparent standards to cater for global infrastructure needs.
The investment package will facilitate mobility and trade through strategic corridors both within Africa and between Africa and Europe. The package will be used to develop international transport infrastructure by supporting investment in sustainable, efficient and secure connectivity between the two continents, and update and harmonise regulatory frameworks.
The launch of work on two trunk roads (RN13 and RNT12A) marks a major step forward in relations between Madagascar and the European Union on the one hand, and between the European Investment Bank and the African Development Bank Group on the other.
Rehabilitating RN13
The rehabilitation work on trunk road RN13 between Ambovombe and Fort-Dauphin is part of an overall project to modernise Madagascar’s road network. This project also involves the rehabilitation of trunk road RN6 between Antsiranana and Ambanja. This project has received €235.5 million in financing with a €116 million subsidy from the European Commission, a loan and grants totalling €114.7 million from the European Investment Bank, and €4.8 million in financing from the Republic of Madagascar. This project will enable 348 km of roads to be modernised in Madagascar.
EU-funded technical assistance will also be provided to support the construction of these new road links, ensuring that best global environmental and social engineering practice is followed.
Rehabilitating RNT12A
The rehabilitation work on RNT12A between Fort-Dauphin and Ebabika and between Masianaka and Vangaindrano is part of phase I of the Corridor Development and Trade Facilitation Project which also includes the development work on RN9 between Analamisampy and Manja. This project is worth over €183 million and will make it possible to build and rehabilitate 240.9 km of roads.
It is financed by €39 million in grants from the European Commission, a loan and grants totalling €78.6 million from the African Development Bank, and financing from other partners. The project involves modernising RNT12A and RN9 to connect them to the port of Tulear. Creating this infrastructure will strengthen integration in the region and open it up to the markets in the continent and beyond.
RNT12A was significantly rehabilitated by the European Union under the tenth European Development Fund’s backing of the project to support rural populations by developing trunk roads and rural tracks through an employment-intensive approach. This project was worth €50 million and facilitated work on RNT12A and RN5.
Opening up the south of the country
The rehabilitation of RN13 and RNT12A is essential to improving access to the south of Madagascar, particularly between the two key centres of Anosy, Fort-Dauphin, and Androy, Ambovombe. It will shorten the time and lower the costs involved in transporting products to the south of the country.
These positive effects will be felt by the local population and households living off subsistence farming and cash crops, as well as businesses and traders who will be able to transport their goods under more advantageous and secure conditions. This could act as a magnet to new economic players who will be able to invest more at less prohibitive costs and help sell products from the south in other parts of the country.
Finally, this work will also contribute to the faster and cheaper delivery of any emergency aid to the more vulnerable populations affected by the drought.
From a sustainability vantage point, the importance of road maintenance, in terms of both human and financial resources, must not be forgotten. Sustainable solutions must be found to maintain and extend trunk roads using national funding. To protect roads from excessively rapid deterioration, ensuring the smooth operation of weigh stations is also key, particularly by making sure that staff are paid on time.
Other EU funding for roads
The European Union has also contributed €47 million to repairing infrastructure damaged by storms and cyclones, making it possible to open roads up again quickly.
The African Development Bank Group in Madagascar
In Antananarivo on 8 June 2022, the African Development Bank Group and the Madagascar government signed financing agreements totalling $16.9 million. This financing will be used to implement the first phase of the agricultural and agro-industrial growth cluster programme in South Madagascar.
At 20 June 2022, the African Development Bank Group's active portfolio in Madagascar consists of 18 operations totalling €655 million. Agriculture, energy infrastructure and transport infrastructure are the main sectors making up the portfolio.
Background information
About the EIB
Since 1970, the EIB has lent €893 million to support long-term investments in Madagascar.
EIB Global is the EIB Group's new specialised arm dedicated to increasing the impact of international partnerships and development finance. It is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices around the world.
About the African Development Bank Group
The African Development Bank Group is the main development finance institution in Africa. It consists of three separate entities: the African Development Bank, the African Development Fund and the Nigeria Trust Fund. The Bank is represented in 41 developing countries in Africa and has an external office in Japan. It contributes to the economic development and social advancement of its 54 regional member states.
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