KAMPALA — Uganda has secured €110.5 million (about Shs481 billion) to finance the construction of the 115.8-kilometre Kitgum–Kidepo Road, a project expected to improve transport, boost tourism and open up economic opportunities in Northern Uganda and the Karamoja sub-region.
The financing agreement was signed on Tuesday by the Minister of State for Finance (General Duties), Henry Musasizi, and Standard Chartered Bank Uganda Chief Executive Officer, Sanjay Rughani.
The road project forms part of the government’s wider plan to improve transport infrastructure and support trade, industrial growth and regional integration.
Speaking after the signing ceremony, Musasizi said the project would play a key role in connecting communities, lowering transport costs and creating new economic opportunities.
“The financing package demonstrates our shared commitment to improving connectivity and unlocking the economic potential of Northern Uganda and the Karamoja sub-region,” he said.
According to government, the new road will reduce travel time, improve road safety and lower the cost of moving goods and services. It is also expected to increase trade with neighbouring countries and strengthen Uganda’s participation in the African Continental Free Trade Area (AfCFTA).
The improved road network is expected to support several major investments planned for the region, including the planned US$300 million Yaobai Cement and Clinker Factory in Moroto, which is expected to create thousands of jobs and increase cement production.
The road will also make it easier for tourists to access Kidepo Valley National Park, one of Uganda’s leading wildlife destinations. It will complement the planned US$72 million Kidepo International Airport, which government hopes will attract more tourists and investors to the region.
Officials believe better access to the park will increase visitor numbers, grow tourism earnings and encourage more investment in hotels, transport and other tourism-related businesses.
Musasizi described the project as an investment in Uganda’s long-term development rather than just another road.
“Today’s signing is not simply about financing a road. It is about investing in Uganda’s future. It is about connecting farmers to markets, industries to raw materials, tourists to destinations and businesses to opportunity,” he said.
He added that the road will help farmers and businesses reach markets more easily, reduce transport and logistics costs, and minimise post-harvest losses.
Standard Chartered Bank Uganda Chief Executive Officer Sanjay Rughani said the bank was proud to support infrastructure projects that deliver both business value and national development.
“The Kitgum–Kidepo Road is a strategic investment that reinforces our long-term role as a trusted Corporate and Investment Bank,” Rughani said.
The signing ceremony was attended by the Minister of Works and Transport, Fred Byamukama, the Minister of Trade, Industry and Cooperatives, Sanjay Tanna, and the Minister of Tourism, Wildlife and Antiquities, Tom Butime, among other government officials.
Once completed, the Kitgum–Kidepo Road is expected to become an important economic corridor, supporting trade, tourism, agriculture, manufacturing and cross-border business while accelerating development in Northern Uganda and the Karamoja sub-region.
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