Kampala, Uganda | The African Development Bank (AfDB) has approved an additional €217.37 million ($250.78 million) in financing to Uganda for the completion of the Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project, a key transport corridor linking Uganda and Rwanda.
The new funding aims to ease traffic congestion, enhance trade, and promote regional integration along the Northern Corridor, which connects Kampala to Kigali.
“This project is more than a road; it is a lifeline for communities and a gateway for trade,” said George Makajuma, AfDB’s Principal Transport Engineer. “The additional financing ensures safer, faster, and more inclusive transport for millions, unlocking the region’s economic potential.”
Construction is expected to resume in January 2026 and conclude by December 2029, with full completion anticipated in 2030. The funding comes through the EU–Africa Infrastructure Trust Fund, managed by AfDB, which has supported African infrastructure projects worth over €11 billion since 2007.
A consortium of Chinese firms China Civil Engineering Construction Corporation (CCECC) and China Railway 19th Bureau Group Co. Ltd initially secured the construction contract in 2019. The additional financing will fund new interchanges, bridges, toll plazas, and service lanes, including the Busega Interchange linking the expressway to Kampala’s Northern Bypass.
The 27.3-kilometre Busega–Mpigi Expressway will reduce travel time from over two hours to under 45 minutes, benefiting more than a million residents and traders in central Uganda. It is also expected to lower vehicle operating costs, improve road safety, and streamline customs processes for imports and exports.
The project’s total cost now stands at €424.61 million, up from €176.26 million, reflecting an expanded scope. The AfDB’s contribution includes an ADB loan (€188.18 million), an ADF loan (€28.31 million), and a NEPAD-IPPF grant ($1 million), while the Ugandan government will provide €30.98 million in counterpart funding.
Beyond roadworks, the financing supports seven new bridges, 54 kilometres of lined drainage, and capacity-building programs for local communities. It is expected to create over 1,200 jobs, with 30% reserved for women and youth.
Originally conceptualized a decade ago, the broader Uganda–Rwanda road network seeks to strengthen regional trade routes through the Great Lakes region. By improving the Kampala–Mpigi and Kagitumba–Kayonza–Rusumo corridors, the project reinforces Uganda’s role as a key trade hub and supports the long-term goals of the African Continental Free Trade Area (AfCFTA).