The European Commission, the executive body of the European Union (EU), said Wednesday it would grant Tanzania 30 million euros (about 38 million U.S. dollars) to modernize the country's primitive roads.
According to a statement from the commission, the grant would be used to improve the link between the biggest city Dar es Salaam and Mwanza.
The statement said the project, to be completed before the end of 2007, would reduce transport costs in East Africa and develop the regional market.
Mwanza falls in a major East Africa corridor and links Tanzania with Uganda, Rwanda, Burundi and Kenya and through these countries to Ethiopia as well as the Democratic Republic of the Congo.
The EU has already provided over 170 million euros (about 216 million dollars) in road funding since 2002. Despite these efforts, Tanzania's road network remained primitive and quite limited, even by African standards.