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Kampala, Uganda | Agencies | Africa’s multi-lateral lender, African Development Bank (AfDB) has approved an additional €217.37 million ($250.78 million) in financing to the Ugandan government for the completion of the Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project, a critical transport corridor linking Uganda and Rwanda.
The new funding is expected to ease major traffic bottlenecks and enhance regional trade under the Northern Corridor, which connects Kampala to Kigali.
“This project is more than a road; it is a lifeline for communities and a gateway for trade,” said George Makajuma, AfDB’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.”
According to the Bank, construction is set to resume in January 2026 and is projected to conclude by December 2029, with full completion expected in 2030. The funding is drawn primarily from the European Union–Africa Infrastructure Trust Fund, managed by the AfDB as part of a wider initiative to promote continental integration. Since 2007, the Trust Fund has supported infrastructure projects across Africa worth over €11 billion.
A consortium of Chinese firms — China Civil Engineering Construction Corporation (CCECC) and China Railway 19th Bureau Group Co. Ltd — first secured the construction contract in 2019. The latest round of financing will fund additional works, including new interchanges, bridges, toll plazas, and service lanes, notably the Busega Interchange linking the expressway to Kampala’s Northern Bypass.
Busega–Mpigi Expressway
The upgraded 27.3-kilometre Busega–Mpigi Expressway is expected to reduce travel time from over two hours to under 45 minutes, significantly improving access to markets and social services for more than one million residents and traders in central Uganda.
Beyond easing congestion, the project aims to cut vehicle-operating costs and travel times, enhance road safety, and streamline customs processing for imports and exports along the Northern Corridor. It will also support land compensation, project management, and institutional strengthening within Uganda’s Ministry of Works and Transport following its recent restructuring.
The total cost of the Uganda component now stands at €424.61 million, up from the initial €176.26 million, reflecting the expanded project scope. The AfDB Group’s contribution of €217.37 million comprises an ADB loan (€188.18 million), an ADF loan (€28.31 million), and a NEPAD-IPPF grant ($1 million). The Ugandan government will provide €30.98 million in counterpart funding.
The additional financing also covers seven new bridges, 54 kilometres of lined drainage channels, and capacity-building programmes for local communities. More than 1,200 jobs are expected to be created — 800 during construction and 400 in operations — with at least 30% reserved for women and youth.
Genesis of the project
Originally conceived a decade ago, the broader project spans both Uganda and Rwanda. In Uganda, it involves upgrading the 24-kilometre Kampala–Mpigi section into a dual carriageway, while in Rwanda it includes rehabilitating the Kagitumba–Kayonza–Rusumo roads that connect to Uganda at Mirama Hills and Tanzania along the Central Corridor.
The AfDB said the upgraded transport link will serve as a strategic artery for trade and integration across the Great Lakes region, supporting long-term growth and regional competitiveness.
