Kampala, Uganda | Agency | Africa’s multilateral financial institution, the African Development Bank (AfDB), has approved an additional €217.37 million ($250.78 million) in financing to the Government of Uganda for the completion of the Busega-Mpigi Road and Kagitumba-Kayonza-Rusumo Road projects, important transport corridors connecting Uganda and Rwanda.
The new funding is expected to ease major transport bottlenecks and enhance regional trade under the Northern Corridor linking Kampala and Kigali.
“This project is more than just a road; it is a lifeline for local communities and a gateway to trade,” said George Makajuma, AfDB’s Principal Transport Engineer and Project Task Manager. “The additional financing will ensure that the Busega-Mpigi Expressway will provide safer, faster and more inclusive transport for millions of people and unlock the economic potential of the region.”
Construction is expected to resume in January 2026 and be completed by December 2029, with full completion expected in 2030, the World Bank said. Funding comes primarily from the European Union-Africa Infrastructure Trust Fund, which is managed by the AfDB as part of broader efforts to promote continental integration. Since 2007, the Trust Fund has supported over €11 billion of infrastructure projects across Africa.
A consortium of Chinese companies, China Civil Engineering Construction Corporation (CCECC) and China Railway No. 19 Group Co., Ltd. signed their first construction contract in 2019. This round of funding will fund additional works including new interchanges, bridges, toll plazas and service lanes, particularly the Busega Interchange linking the expressway to Kampala’s Northern Bypass.
Busega-Mpigi Expressway
The improved 27.3km Busega-Mpigi Expressway is expected to reduce travel times from more than two hours to less than 45 minutes, significantly improving access to markets and social services for more than one million residents and traders in central Uganda.
In addition to easing congestion, the project aims to reduce vehicle operating costs and travel times, enhance road safety, and streamline customs procedures for imports and exports along the Northern Corridor. It will also support land compensation, project management and organizational strengthening within Uganda’s Ministry of Labor and Transport following its recent restructuring.
The total cost of the Uganda part is now €424.61 million, up from an original €176.26 million, reflecting the expansion of the project scope. The AfDB Group’s contribution of €217.37 million consists of an ADB loan (€188.18 million), an ADF loan (€28.31 million) and a NEPAD-IPPF grant ($1 million). The Ugandan government will provide counter-funding of 30.98 million euros.
Additional financing also includes seven new bridges, 54 kilometers of upgraded drainage channels and a capacity building program for local communities. More than 1,200 jobs are expected to be created, of which 800 are under construction and 400 in operation, with at least 30% reserved for women and youth.
Origin of the project
Originally conceived 10 years ago, the project is a broader project spanning both Uganda and Rwanda. In Uganda, this includes converting 24 kilometers between Kampala and Mpigi into a dual carriageway, while in Rwanda it includes upgrading the Kagitumba-Kayonza-Rusumo road, which connects Uganda with Tanzania along the Central Corridor at Mirama Hills.
The AfDB said the improved transportation links will serve as a strategic artery for trade and integration across the Great Lakes region, supporting long-term growth and regional competitiveness.
