Abu Dhabi Fund for Development (ADFD) has signed a loan agreement with the Ugandan government worth AED 91.8 million (US$25mn) to support a road project connecting four key districts in the eastern part of the country
The road spans four areas, including Kumi, Ngora, Serere and Kagwara.
The project aims to enhance the country’s transport infrastructure, to boost economic growth and improve access to essential services and commercial centres, ADFD said in a statement.
It involves the upgrading of a 98.3 km road, creating a seven-metre-wide roadway with two-metre-wide shoulders on each side.
The roads project is being is co-financed by ADFD, the Islamic Development Bank and the Ugandan government.
ADFD’s financing will cover civil works, bridge construction and related infrastructure development.
The project is expected to enhance road safety, reduce travel time and transportation costs, and strengthen commercial activity, particularly in the Kagwara region near Lake Kyoga.
“Our strategic partnership with Uganda underscores ADFD’s commitment to advancing comprehensive development,” said Mohammed Saif Al Suwaidi, ADFD’s director general.
“It also aligns with our broader objective of strengthening the transport sector, which plays a critical role in promoting sustainable economic growth within developing nations.”
Uganda’s Minister of Finance, Planning and Economic Development, Matia Kasaija, said the project would enhance infrastructure, improve connectivity, bolster regional trade and reinforcing the development of communities around Lake Kyoga.
He also highlighted Uganda’s growing partnership with the UAE and look forward to expanding future cooperation.
This roads project builds on a partnership between ADFD and the Republic of Uganda, that began in 1977.
Since then, ADFD has financed three major development projects across key sectors, with a total value of AED 79.3mn.
“Financing this road project represents a major step towards enhancing the quality of life in eastern Uganda,” added Al Suwaidi.
“By enhancing connectivity within the national transport network, the project will facilitate better access to essential services and unlock new economic opportunities, including job creation during construction and operational phases.”
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Boosting eastern Uganda's roads network. (Image source: ADFD)
