The Government of Mozambique and the African Development Bank (AfDB) have signed an agreement to finance the development of the 35km Nambungali-Roma road with $34m.

The new roadworks, which form part of the second phase of the Mueda-Negomano Road Project, are aimed at facilitating trade and promoting the social inclusion of local communities.

This project aims to improve transport infrastructure between Mozambique and Tanzania.

Agreement for the financing was signed by Mozambique Finance Minister Adriano Maleiane and Bank Country Representative Pietro Toigo.

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Along with the recently constructed Unity Bridge, the 35km road stretch will significantly reduce travel time to the ports of Pemba in Mozambique and Mtwara in Tanzania.

Furthermore, it will improve regional trade and integration between the two countries.

Maleiane said: “Bridging the infrastructure gap, particularly to increase national and regional connectivity, is key to the efforts to eradicate poverty and to accelerate economic growth.”

The road development project is expected to create job opportunities and foster social inclusion along the corridor. This will be done through sponsored vocational training and the promotion of women-led businesses.

The road project will be complemented by ancillary works with an additional $2m investment in local markets, clinics and other social facilities.

Two sector agencies, which include Administração Nacional de Estradas (ANE) and the Fundo de Estradas (FE), will receive technical assistance from the bank to improve their operations.

For resettlement and compensation, the Government of Mozambique will also contribute $536,000.

In December 2016,  AfDB approved a grant of $71.8m for construction of an asphalted 70km road section in Northern Mozambique.