Afdb Approves Shs870Bn for Uganda-Rwanda Road Project

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Afdb Approves Shs870Bn for Uganda-Rwanda Road Project
Afdb Approves Shs870Bn for Uganda-Rwanda Road Project

Africa-Press – Uganda. The African Development Bank Group has approved an additional €217.37 million (Shs870 billion) to complete the Multinational Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project, boosting regional connectivity and trade between Uganda and Rwanda.

The Bank’s Board of Directors sanctioned the funding to reinforce Uganda’s and Rwanda’s shared vision of stronger infrastructure links along the Northern Corridor.

The additional resources will finance new interchanges, bridges, toll plazas, and service lanes, including the Busega Interchange that will connect the expressway to the Northern Bypass, addressing chronic congestion between Busega and Mpigi.

The funding will also cover land compensation, project management, and capacity enhancement for Uganda’s Ministry of Works and Transport to ensure smooth implementation following recent institutional restructuring.

The upgraded 27.3-km Uganda section of the expressway is expected to cut travel time from over two hours to under 45 minutes, improving access to markets and social services for more than one million residents and traders in Busega, Mpigi, and surrounding communities.

The total cost of the upgraded Uganda section now stands at €424.61 million, up from the original €176.26 million, reflecting a scaled-up project scope.

The African Development Bank will provide €217.37 million — comprising an ADB loan of €188.18 million, an ADF loan of €28.31 million, and a NEPAD IPPF grant of $1 million — while the Government of Uganda will contribute €30.98 million.

Additional project components include seven new bridges and 54 km of lined drainage channels.

The initiative is expected to generate over 1,200 jobs — 800 during construction and 400 in operations — with at least 30% of opportunities reserved for women and youth.

Local women will also benefit through entrepreneurship and skills development linked to roadside economic activities.

“This project is more than a road; it is a lifeline for communities and a gateway for trade,” said George Makajuma, the Bank’s Principal Transport Engineer and project task manager.

“The additional financing ensures that the Busega–Mpigi Expressway delivers safer, faster, and more inclusive transport for millions, unlocking the region’s economic potential.”

Construction under the additional financing is scheduled to resume in January 2026 and is expected to conclude by December 2029, with full project completion targeted for 2030.

The expressway is part of Uganda’s broader investment in infrastructure to stimulate economic growth, reduce transport costs, and enhance competitiveness in the East African region.

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