The Arab Bank for Economic Development in Africa (BADEA) has granted loans totalling US$45.3 million to six African countries.
The benefitting African countries are Botswana, Cape Verde, Sierra Leone, Seychelles, Mauritius and Namibia.
The loans were granted following a recent agreement at BADEA’s headquarters here.
According to the sources, the loans are aimed at assisting the six African countries to finance their development projects
Botswana, which is receiving US$10 million of the total loans, will use the money to upgrade the Sir Seretse Khama International airport.
Botswana has a period of 20 years, including a five-year grace period, within which to pay back the loan.
For Cape Verde, its US$8 million loan will go into the Ring Road project on the FOGO Island.
The loan will be repaid over 30 years, including a grace period of 10 years.
When completed, the road will link villages on the FOGO Island with air and sea ports in Sao Felipe town to facilitate the movement of passengers and goods.
Sierra Leone’s US$10 million will be used to finance the Kenema-Pendembou section of the Kenema-Koindu road project; the US$1.5 million loan to Seychelles will go to the Development Bank of Seychelles (DBS) for its credit facilities; Mauritius will finance its waste management
project with its loan of US$3.10 million while Namibia’s US$12.70 million will be for the Tandjiescoppe irrigation project.
BADEA’s total financial commitment to the six countries by the end of last year was about US$332.92 million.
Between March 1975 and December 2007, BADEA granted loans to 43 African countries to the tune of US$3.3 trillion to finance projects and as technical assistance and funds allocated through the Heavily Indebted Poor Countries Initiative (HIPC).
