Govt gets sh958b for Nile, Kigezi roads

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The African Development Bank (AfDB) says it has approved a total of $252.83m (about sh958b) for roads to Uganda.

The loan is expected to go towards the construction of the Laropi-Moyo-Afoji and Katuna-Muko-Kamuganguzi roads.

The bank on Friday said the financial support consists of two loans: $179.68m from AfDB and $73.15m from the African Development Fund, the Bank Group's concessional loan window.

"The Laropi-Moyo-Afoji/Katuna-Muko-Kamuganguzi road project is intended to improve rural transport connectivity and facilitate regional integration in the districts of Kabale, Rubanda, and Moyo, in Uganda. It will boost incomes, deepen regional integration, and facilitate trade while opening up an alternative transport corridor linking Uganda with South Sudan," AfDB country manager for Uganda Augustine Ngafuan said.

"Building this infrastructure will enable economic operators along this route to reduce costs and lead times while improving the efficiency of transport logistics," he added.

In addition to the two main roads, the project is expected to also support works on five kilometres of roads in small towns and non-motorized traffic facilities (walkways and cycle tracks) within Moyo and Laropi in northwestern Uganda to improve mobility.

It will also facilitate street lighting to improve the business environment for traders, and regional bus terminus in Moyo.

The project also provides for the construction of market stalls complete with cold storage facilities in Kashasha/Katuna, Moyo, and Laropi to support women traders who currently operate on the roadsides, to improve earnings from perishable products such as fish and vegetables.

"There will also be flood protection works in Laropi to strengthen resilience to the effects of climate change and reduce disruptions to commercial activities," the bank said. 

It added that a one-stop border post will be constructed in Afoji/Jale on the Uganda-South Sudan border to boost trade and transport activities and facilitate the harmonization of customs and co-ordination of the border-crossing. 

As of November 2023, the AfDB Group's active portfolio in Uganda comprised 23 projects with a total commitment of $1,957 million.