Cameroon to ratify loan agreement with IBRD for the rehabilitation of the Douala-Bangui economic corridor
Paul Biya, President of Cameroon, signed this October 2nd, a decree authorizing the Minister of Economy, Planning and Regional Development to sign the 228 billion FCFA loan agreement with the International Bank for Reconstruction and Development (IsDB) for the rehabilitation of the Douala-Bangui economic corridor.
Approved on June 12th by the World Bank’s Board of Directors, this agreement provides for the release of an initial phase of $525 million focused on the rehabilitation of priority infrastructure, road safety, and maintenance reforms in Cameroon, the Central African Republic (CAR), and the CEMAC region, the Bretton Woods institution stated.
Stretching over 1,400 kilometers, the Douala-Bangui corridor is a crucial artery for the Cameroonian economy and a vital artery for the Central African Republic, through which more than 80% of the country’s foreign trade passes.
Despite its strategic importance, the corridor suffers from deteriorating roads, transport costs that can reach $270 per ton (approximately 160,000 FCFA), travel times of 9 to 12 days under normal conditions, and 38 checkpoints in Cameroon alone, 17 of which involve informal payments.
These obstacles hinder trade, increase consumer prices, compromise food security, and keep millions of people out of economic opportunities. By rehabilitating infrastructure, particularly bottlenecks, and experimenting with sustainable maintenance systems, the program will reduce transport costs, improve market access, and support inclusive growth along one of Central Africa’s most vital trade routes, thus contributing directly to the World Bank’s goals of ending poverty and promoting shared prosperity.
