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AfDB Approves Shs650b Loan to Upgrade Arua Airport into Uganda’s Second International Gateway

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AfDB Approves Shs650b Loan to Upgrade Arua Airport into Uganda’s Second International Gateway

by Our Reporter
June 19, 2026
AfDB Approves Shs650b Loan to Upgrade Arua Airport into Uganda’s Second International Gateway
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ARUA — The African Development Bank (AfDB) Group has approved financing worth €155.99 million for the upgrade of Arua Airport into an international-standard aviation facility, a major infrastructure investment expected to strengthen regional trade, tourism and connectivity across Uganda’s West Nile region and neighbouring countries.

The funding, approved by the Bank Group’s Board of Directors, will support the first phase of the Uganda Airports Development Programme, which seeks to transform Arua Airport into a modern gateway capable of serving both passenger and cargo traffic on a regional and international scale.

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Located approximately 450 kilometres northwest of Kampala, Arua sits at the crossroads of Uganda, South Sudan and the Democratic Republic of Congo, making it a strategic hub for cross-border commerce. However, limited aviation infrastructure has constrained the region’s economic potential and accessibility.

Under the project, Arua Airport will undergo a comprehensive modernization programme, including the construction of a 3.5-kilometre paved runway capable of accommodating large aircraft such as the Boeing 777, new taxiways and aprons, a passenger terminal with an annual handling capacity of 700,000 travellers, and a cargo terminal designed to process 25,000 tonnes of freight annually.

Additional works will include the construction of a new control tower, access roads, parking facilities and upgraded aviation safety systems.

The total programme cost stands at €157.76 million, with the African Development Bank providing a loan of €141.15 million and the African Development Fund contributing €14.84 million. The Government of Uganda will make an in-kind contribution valued at €1.77 million.

Speaking after the approval, Mike Salawou, Director of Infrastructure and Urban Development at the African Development Bank Group, said the project’s impact extends far beyond aviation. “This project is about more than an airport. It is about connecting people to opportunity, opening new markets for businesses, supporting tourism, and strengthening Uganda’s role as a regional trade and logistics hub.”

Implementation of the project will be overseen by the Uganda Civil Aviation Authority (UCAA) under the supervision of the Ministry of Works and Transport.

UCAA Director General Fred Bamwesigye described the investment as a transformative milestone for Uganda’s aviation sector and regional development.

“Arua Airport is currently the second busiest in the country after Entebbe International Airport and has immense growth potential,” Bamwesigye said. “The airport will also serve as an alternative to Entebbe International Airport during emergencies. We are highly grateful to the African Development Bank for its invaluable partnership and support in this transformative project.”

He added that the upgraded airport is expected to significantly improve regional connectivity while accelerating social and economic transformation across the West Nile sub-region.

The region is widely regarded as one of Uganda’s emerging economic frontiers, endowed with rich agricultural resources, mineral deposits, tourism attractions and growing trade links with neighbouring countries.

Improved air transport infrastructure is expected to facilitate faster movement of people and goods, particularly high-value and perishable agricultural products destined for regional and international markets. The project is also expected to boost tourism by improving access to the region’s cultural and natural attractions.

According to project estimates, more than 500,000 residents of Arua City and Arua District will directly benefit from the programme, while the wider West Nile region, home to more than 3.3 million people, will gain from increased investment, improved mobility and expanded economic opportunities.

The construction phase is projected to create approximately 500 direct jobs, while an additional 1,400 indirect jobs are expected to emerge in sectors such as tourism, agriculture, logistics and trade.

The programme also includes a skills development component that will provide training opportunities for at least 100 young people, including women, in engineering, construction and equipment operations.

The investment aligns with the African Development Bank’s Ten-Year Strategy 2024–2033 and Uganda’s Country Strategy Paper for 2022–2026, both of which prioritize sustainable infrastructure development as a catalyst for industrialisation, market access and economic competitiveness.

Once completed, the upgraded Arua International Airport is expected to position the West Nile region as a key trade and logistics hub, enhancing Uganda’s connectivity with regional markets while supporting the country’s broader economic transformation agenda.

 

Tags: Africa Development BankArua International AirportFred BamwesigyeMike SalawouSoftPowerSoftPower NewsTop Uganda NewsUganda

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