AfDB Backs Uganda Airport Upgrade with €156 Million Financing

Mike Salawou, Director of Infrastructure and Urban Development at the African Development Bank Group, said the project extends beyond aviation infrastructure.

The African Development Bank Group has approved financing of €155.99 million to support the transformation of Arua Airport into an international-standard aviation hub, a move expected to strengthen regional connectivity and create new economic opportunities across northwestern Uganda. The funding will support Phase 1 of the Uganda Airports Development Programme, which seeks to modernise aviation infrastructure and improve access to domestic and regional markets.

Located about 450 kilometres from Kampala, Arua serves as a key gateway to Uganda's West Nile region and neighbouring countries, including South Sudan and the Democratic Republic of Congo. Despite its strategic position, limited air transport infrastructure has restricted the area's economic potential and cross-border connectivity.The project is designed to improve the movement of people and goods while supporting safer, more efficient and climate-resilient air transport services.

New facilities to support passengers and cargo growth

The airport upgrade will include the construction of a 3.5-kilometre paved runway capable of accommodating large aircraft such as the Boeing 777. New taxiways, aircraft aprons, and modern aviation safety systems will also be developed as part of the expansion.

Plans include a passenger terminal with capacity to handle up to 700,000 travellers annually, alongside a cargo terminal capable of processing 25,000 tonnes of freight each year. Additional infrastructure will feature a new control tower, access roads, and expanded parking facilities.

Of the total programme cost of €157.76 million, the African Development Bank will provide a €141.15 million loan, while the African Development Fund will contribute €14.84 million. The Government of Uganda will provide an in-kind contribution valued at €1.77 million.

Mike Salawou, Director of Infrastructure and Urban Development at the African Development Bank Group, said the project extends beyond aviation infrastructure. He noted that improved connectivity would open new markets for businesses, support tourism growth, and strengthen Uganda's position as a regional trade and logistics centre.

Jobs, trade and tourism expected to benefit

Officials expect the upgraded airport to deliver significant economic benefits across the West Nile region. Improved air access will help farmers and businesses transport perishable goods more quickly and efficiently to regional and international markets, reducing costs and improving competitiveness.

The project is also expected to enhance access to tourist attractions in northwestern Uganda, supporting growth in the tourism sector and related industries. More than 500,000 residents of Arua City and District are expected to benefit directly from the development, while the wider West Nile region, home to more than 3.3 million people, stands to gain from increased investment and improved transport links.

Construction activities are projected to create around 500 direct jobs, with more than 1,400 indirect jobs expected in tourism, agriculture, logistics, and trade. The programme will also provide technical skills training for at least 100 young people, including women, in fields such as engineering, construction, and equipment operations.

Uganda Civil Aviation Authority Director General Fred Bamwesigye described the project as a transformative investment that will strengthen regional connectivity while providing an important alternative airport to Entebbe International Airport during emergencies.