AfDB Commits €217m to Ease Congestion and Boost Uganda–Rwanda Trade
The African Development Bank Group has approved an additional €217.37 million to complete the Multinational Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project, bolstering regional connectivity and cross-border trade between Uganda and Rwanda.
The new financing will support the construction of interchanges, bridges, toll plazas, and service lanes, including the Busega Interchange that connects the expressway to the Northern Bypass. These works are expected to ease chronic congestion between Busega and Mpigi, a major bottleneck along the Northern Corridor linking Kampala to Kigali.
Part of the funding will also cater for land compensation, project management, and capacity enhancement within Uganda’s Ministry of Works and Transport to ensure smooth implementation following recent institutional restructuring.
When completed, the 27.3-kilometre expressway will reduce travel time from more than two hours to under 45 minutes, improving access to markets and essential services for over one million residents and traders in Busega, Mpigi and neighbouring communities.
The expanded scope has increased the total cost of Uganda’s section to €424.61 million, up from the original €176.26 million. Of this, the Bank Group will provide €217.37 million through an ADB loan of €188.18 million, an ADF loan of €28.31 million, and a NEPAD-IPPF grant of $1 million. The Government of Uganda will contribute €30.98 million.
The additional funding will also cover the construction of seven new bridges and 54 kilometres of lined drainage channels. The project is set to generate more than 1,200 jobs – 800 during construction and 400 in operations – with at least 30 percent reserved for women and young people. It will also support women’s economic empowerment through entrepreneurship and skills development initiatives tied to roadside business opportunities.
“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 Board’s approval comes as Uganda continues to prioritise infrastructure investment to drive growth and enhance competitiveness. Once complete, the expressway will reduce transport costs, stimulate regional trade, and create jobs across multiple sectors.
Construction under the additional financing is expected to resume in early January 2026 and conclude by December 2029, with full project completion anticipated in 2030.
