African Development Bank greenlights €217 million for border-road completion in Uganda

By: ThinkBusiness Africa

The Board of Directors of the African Development Bank Group (AFDB)  has approved €217.37 million for the completion of a key border road project linking Uganda and Rwanda. AFDB said on Thursday.

The Multinational Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project, will foster Uganda’s and Rwanda’s regional connectivity and ease trade relations between both countries.

According to the bank, the resources will finance the construction of new interchanges, bridges, toll plazas, addressing chronic traffic congestion between Busega and Mpigi, a key bottleneck along the Northern Corridor connecting Kampala to Kigali.

Once completed, the 27.3-km 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 the 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.

AFDB Group will provide €217.37 million,while the Government of Uganda will contribute €30.98 million.

The project 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.

“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.”

The East African country’s national carrier (Uganda Airlines) recently launched its first-ever direct flight to London, improving international connectivity for passengers and cargo.

Once completed, the expressway will help reduce travel time, lower transport costs, and boost regional trade and job creation.

Total Bilateral Trade Volume between Uganda and Rwanda reached $291 million in 2023; with Uganda being the major exporter.

Corn/Maize, Sugars and sugar confectionery, Unglazed Ceramics, Sorghum, Milling products, and Cereals are major traded products.

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