The European Investment Bank announced on 14 November a €95.5 million loan, combined with a €43.1 million European Union grant, for the renovation of the principal M1 road across Malawi, after signing its largest ever investment deal in the southeastern African landlocked country.
The upgraded road will improve safety, reduce transport costs, cut travel time and facilitate exports. It will improve links to the neighboring countries and will directly benefit local communities as all priority routes are located in agricultural areas and are used for foreign trade to the border points.
Over the last decade, the EU bank has provided more than €2.2 billion for road projects in Africa. Some €4.5 million of the EU grant funding is planned for the technical assistance and monitoring once the construction is complete.