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African Development Bank to Provide Over $252 Million for Rural Transport and Regional Integration in Uganda

On December 1st in Abidjan, the Board of Directors of the African Development Bank Group (www.AfDB.org) gave the green light to a $252.83 million loan to Uganda for the construction of the Laropi-Moyo-Afoji and Katuna-Muko-Kamuganguzi road.

This financial support consists of two loans: $179.68 million from the African Development Bank and $73.15 million from the African Development Fund, the Bank Group’s concessional loan window.

According to Augustine Ngafuan, the African Development Bank’s Country Manager in Uganda, the intended purpose of the Laropi-Moyo-Afoji/Katuna-Muko-Kamuganguzi road project is to improve rural transport connectivity and facilitate regional integration in the districts of Kabale, Rubanda, and Moyo, in Uganda. He also added that it will boost incomes, deepen regional integration, and facilitate trade while opening up an alternative transport corridor linking Uganda with South Sudan.

Mr. Ngafuan also mentioned that building this infrastructure will enable economic operators along this route to reduce costs and lead times while improving the efficiency of transport logistics.

In addition to the main roads, the project will include various social complementary initiatives such as the construction of 5 kilometres of roads in small towns, non-motorized traffic facilities, street lighting, regional bus terminus, and market stalls with cold storage facilities. The project also provides for flood protection works, and the construction of a one-stop border post in Afoji/Jale on the Uganda-South Sudan border.

The Laropi-Moyo-Afoji road is located in northwestern Uganda, in the district of Moyo, which has a population of about 140,000. The road will provide vital access to several refugee camps and support agricultural communities in Kabale and Rubanda districts, with a combined population of about 460,000 inhabitants.

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

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media contact:
Alexis Adélé
Communication and External Relations Department
media@afdb.org

About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org

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