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The African Development Bank (AfDB) has approved a $92.9 million financing package to support the construction of a network of roads in South Ethiopia, according to a statement released on Thursday.

The Abidjan-based multilateral lender said its financing package – which includes a $57.6 million-grant and $35.3 million loan – will fund the upgrade of 240 kilometres of gravel road sections to all-weather asphalt concrete surfaced road. The road sections are in Oromia and in Southern Nations, Nationalities and Peoples Region (SNNPR).

“Because of this project, Sawla people will no longer be excluded from the mainstream social economy,” said Mumina Wa-Kyendo, AfDB’s Chief Transport Engineer. “Faster travel on all-weather asphalt concrete road will open access to trading activities. Furthermore, this project will empower vulnerable women by improving their entrepreneurial skills and capabilities.”

The two road sections will connect the towns of Jimma and Chida (80km) as well as Sawla and Sodo (160km), facilitating access to remote hinterland to the main trunk road network and providing social and economic opportunities in Addis Ababa and the rest of the country. The project will serve the 1.4 million population living in 8 woredas (districts) and contribute to the transformation of rural economies and moving up the agricultural value chain.

Besides road construction, the project also includes activities such as enhancement of emergency response capacity of the Sawla Hospital, technical assistance programme to train women in entrepreneurial skills and support them in trading, and also capacity building in research and skills development at the Ministry of Transport and the Ethiopian Roads Authority on topics such as transport sector policies, climate change and disaster management.

The total cost of the project is $264.3 million, and is co-financed by the Government of Ethiopia, the Japan International Cooperation Agency (JICA) and the Nordic Development Fund (NDF).