AfDB Allocates Shs877.7bn to Complete Busega–Mpigi & Regional Road Links

Abidjan, Côte d’Ivoire — The Board of Directors of the African Development Bank Group has approved an additional €217.37 million (approximately Shs877.77bn) for the Multinational Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project, reinforcing Uganda’s and Rwanda’s shared vision of stronger regional connectivity and trade.

The additional resources will finance the construction of new interchanges, bridges, toll plazas, and service lanes, including the Busega Interchange linking the expressway to the Northern Bypass. These improvements will address chronic traffic congestion between Busega and Mpigi, a key bottleneck along the Northern Corridor connecting Kampala to Kigali.

Funding will also cover land compensation, project management, and capacity enhancement for Uganda’s Ministry of Works and Transport to ensure smooth execution following recent institutional restructuring.

Once completed, the 27.3-km expressway is expected to cut travel time from over 2 hours to under 45 minutes, improving access to markets and social services for more than 1 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. The Bank Group will provide €217.37 million — comprising an ADB loan of €188.18 million, an ADF loan of €28.31 million, and a NEPAD IPPF grant of $1 million — while the Government of Uganda will contribute €30.98 million.

Additional components to be financed include seven new bridges and 54km of lined drainage channels. 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. It will also empower local women through entrepreneurship and skills development initiatives linked to roadside economic 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 decision comes as Uganda continues to invest heavily in infrastructure to stimulate economic growth and enhance competitiveness. Once completed, the expressway will help reduce travel time, lower transport costs, and boost regional trade and job creation.

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.