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African Development Fund approves US$71.5mn for road upgrades in Uganda

Roughly 86% of the project will be financed by the African Development Fund. (Image source: Adobe Stock)

The board of the African Development Fund (ADF) has approved a loan of US$71.5mn to pave sections of two roads in southwestern Uganda, a project expected to boost livelihoods, school attendance and rural connectivity

The financing will be sourced under ADF-15, the most recent replenishment of the Fund, which is the concessional lending window of the African Development Bank (AfDB). The loan represents roughly 86% of the project’s total costs and the government of Uganda will fund the remaining US$11.9mn.

34km of the Kabale-Lake Bunyonyi-Kabeho circuit and the Kisoro-Mgahinga Park Gates road will be upgraded and paved, alongside the construction of two roadside markets, farm produce holding facilities and four ferry landing sites on Lake Bunyonyi.

The funds will also underwrite the provision of two ferries with navigational aids and the provision of technical assistance to the government to strengthen road safety regulations and support implementation of inland water transport aspects of the project. The project also makes provision for relocation and compensation of those affected.   

The intervention’s complementary approach – blending investment in road renewal with investment in farming and other infrastructure – aims to increase market access for farm produce, increase productivity in a rural part of the country, and strengthen social welfare.

The loan aligns with the government of Uganda’s third National Development Plan under its Vision 2040. It is also consistent with the AfDB’s 10-year Strategy, Pillar I of ADF-15 Strategic Priorities as well as two of the High-5s operational priorities: Feed Africa and Improve the Quality of Life for the People of Africa.

“This innovative and integrated infrastructure development project is poised to increase market development, widen business opportunities and scale up food productivity, enhancing income levels in South-western Uganda,” said Amadou Oumarou, AfDB director of Infrastructure and Urban Development.