Funding for Malawi-Zambia road link

Extra funding will help improve the road link connecting Malawi and Zambia. The African Development Fund (ADF) is providing a loan worth US$73.6 million for the fourth phase of the Multinational Nacala Road Corridor Development project. This route connects Malawi and Zambia and is of major economic importance to both nations, but particularly for Malawi as its transport connections with its neighbours are not well developed. The ADF is providing loans of $7.7 million to Zambia and a loan of $65 million to Malawi, reflecting the relative condition of their economies. Zambia’s copper mining industry has provided steady income in recent years while Malawi’s economy is far more restricted. In addition Malawi will receive a further $900,000 grant from the ADF for the Nacala Road Corridor Development project, reflecting its importance for the country’s future growth.