AfDB approves $252 million for Uganda’s rural infrastructure 

The African Development Bank Group’s board of directors has approved a loan worth $252.38 million to Uganda, a move aimed at advancing rural connectivity and fostering regional integration.

The loan is for the construction of the Laropi-Moyo-Afoji and Katuna-Muko-Kamuganguzi roads, which are pivotal infrastructure in facilitating the smooth movement of goods and services in the regions where they are located.

The financial support comprises $179.68 million from the African Development Bank and $73.15 million from the African Development Fund, focusing on improving transport connectivity in the districts of Kabale, Rubanda and Moyo.

According to Augustine Ngafun, the African Development Bank’s country manager in Uganda, the Laropi-Moyo-Afoji and Katuna-Muko-Kamuganguzi roads project is designed to enhance rural transport connectivity, facilitating regional integration in Kabale, Rubanda and Moyo.

“It will boost incomes, deepen regional integration and facilitate trade while opening up an alternative transport corridor linking Uganda with South Sudan,” Ngafun emphasized.

Beyond road construction, the project includes a suite of social complementary initiatives to improve overall mobility and economic conditions. This encompasses the construction of five kilometers of roads in small towns, non-motorized traffic facilities, street lighting and a regional bus terminus.

Additionally, market stalls equipped with cold storage facilities will be established in key areas, supporting women traders and enhancing earnings from perishable products such as fish and vegetables.

Addressing climate change concerns, flood protection works in Laropi will strengthen the region’s resilience to drastic weather patterns and reduce disruptions to commercial activities. A one-stop border post in Afoji/Jale on the Uganda-South Sudan border is also planned, aiming to boost trade and transport activities by facilitating customs harmonization and coordination of border-crossing operations and supply chains.

The Laropi-Moyo-Afoji road, situated in northwestern Uganda’s district of Moyo, holds strategic importance, providing access to several refugee camps hosting more than 500,000 refugees from the Democratic Republic of the Congo and South Sudan. With 80 per cent of the districts’ land being arable, the road is expected to support agricultural communities in Kabale and Rubanda districts, benefiting approximately 460,000 inhabitants.

The African Development Bank Group’s active commitment to Uganda now totals $1.9 billion across 23 projects as of November 2023.