AfDB Injects €217M into Uganda-Rwanda Road Project to Boost Trade, Cut Travel

The project is not just a road upgrade — it is part of a strategic regional agenda to improve transport efficiency, reduce logistical bottlenecks, and enhance mobility across Uganda and Rwanda.

In a bold move to accelerate regional integration and unlock East Africa’s economic potential, the Board of Directors of the African Development Bank Group (AfDB) has approved an additional €217.37 million in financing for the Multinational Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project. The project, jointly implemented by Uganda and Rwanda, is a cornerstone in the development of the Northern Corridor, a critical trade route that connects Kampala to Kigali and links the Great Lakes Region to the port of Mombasa in Kenya.

The new financing, comprising a combination of loans and a grant, is a direct response to both escalating infrastructure needs and the increased ambition of the project’s scope, aimed at tackling traffic congestion, boosting trade, creating jobs, and enhancing community development.

A Game-Changer for Uganda’s Infrastructure and Regional Trade

The project is not just a road upgrade — it is part of a strategic regional agenda to improve transport efficiency, reduce logistical bottlenecks, and enhance mobility across Uganda and Rwanda. The expressway forms a segment of the Northern Corridor, which is vital for the movement of goods and people in East and Central Africa.

The 27.3-km Busega–Mpigi Expressway, a key component of the Uganda section, is set to reduce travel time from over two hours to under 45 minutes, offering major benefits for commuters, traders, and transporters.

More than one million people, including residents of Busega, Mpigi, and the broader Kampala metropolitan region, are expected to benefit from improved access to markets, jobs, health services, and education.

Expanded Scope: Interchanges, Bridges, Drainage, and More

The latest round of funding will support several scaled-up project elements, ensuring that the corridor meets modern infrastructure standards. These include:

• Construction of the Busega Interchange, providing seamless access to the Kampala Northern Bypass

• Seven new bridges to enhance road safety and resilience during heavy rains

• 54 kilometers of lined drainage channels to mitigate flood risks and improve road longevity

• Toll plazas and service lanes to improve traffic management and long-term maintenance

• Upgraded land acquisition and compensation mechanisms to ensure a smooth resettlement process for affected residents

The project also allocates resources for capacity enhancement within Uganda’s Ministry of Works and Transport, especially critical after the ministry’s recent institutional restructuring. This will help strengthen project oversight, ensure timely execution, and enhance long-term maintenance strategies.

Financing Breakdown: A Continental and Local Partnership

The total cost of Uganda’s upgraded road section now stands at €424.61 million, up from the original €176.26 million. The newly approved €217.37 million in AfDB financing includes:

• An ADB (African Development Bank) loan of €188.18 million

• An ADF (African Development Fund) loan of €28.31 million

• A NEPAD Infrastructure Project Preparation Facility (IPPF) grant of $1 million

In addition, the Government of Uganda will contribute €30.98 million, reaffirming its strong commitment to infrastructure-led growth.

Economic and Social Impact: Jobs, Trade, and Inclusion

Beyond infrastructure, the project is expected to generate broad socioeconomic benefits:

• Over 1,200 jobs will be created — 800 during construction and 400 in operations

• At least 30% of job opportunities will be reserved for women and youth, helping to bridge gender and generational gaps in economic participation

• Local women entrepreneurs will benefit from targeted skills development programs and roadside economic initiatives, fostering community resilience and empowerment

This multifaceted approach ensures that the road serves not just as a conduit for trade but also as a platform for inclusive development.

Timeline and Next Steps

Construction under the additional financing is slated to resume in January 2026 and conclude by December 2029, with full project completion expected by 2030. This timeline reflects the complexities involved in implementing a multinational, high-capacity transport project in a rapidly urbanizing region.

According to George Makajuma, the AfDB’s Principal Transport Engineer and project task manager:

“This project is more than a road; it is a lifeline for communities and a gateway for trade. The additional financing ensures that the Busega–Mpigi Expressway delivers safer, faster, and more inclusive transport for millions, unlocking the region’s economic potential.”

Paving the Way for East Africa’s Future

The approval of this financing underscores the African Development Bank’s commitment to regional connectivity, economic integration, and inclusive growth. As Uganda continues to invest heavily in road, rail, and energy infrastructure, projects like the Busega–Mpigi Expressway are redefining East Africa’s logistics and trade architecture.

When completed, the road will serve not only as a vital trade artery but also as a symbol of how multinational cooperation, visionary planning, and inclusive development models can combine to transform a region’s future.