Emmanuel OchayiThe Board of Directors of the African Development Bank Group approved a loan amounting to $252.83 million for Uganda for the road infrastructure.
The loan is allocated to finance the construction of two vital roads – the Laropi-Moyo-Afoji and Katuna-Muko-Kamuganguzi road.
Augustine Ngafuan, the African Development Bank’s Country Manager in Uganda, highlighted the impact of this infrastructure project. He stated, “The Laropi-Moyo-Afoji/Katuna-Muko-Kamuganguzi road project is intended to improve rural transport connectivity and facilitate regional integration in the districts of Kabale, Rubanda, and Moyo in Uganda. It will boost incomes, deepen regional integration, and facilitate trade while opening up an alternative transport corridor linking Uganda with South Sudan.”
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Ngafuan emphasized the economic benefits, mentioning, “Building this infrastructure will enable economic operators along this route to reduce costs and lead times while improving the efficiency of transport logistics.”
The project’s scope extends beyond road construction. It includes initiatives such as the development of 5 kilometers of roads in small towns, non-motorized traffic facilities, street lighting, regional bus terminus, and market stalls with cold storage facilities. These additions aim to bolster local economies and enhance the trading environment.
Additionally, measures for flood protection in Laropi and the establishment of a one-stop border post in Afoji/Jale on the Uganda-South Sudan border are planned to strengthen resilience to climate change effects and boost trade activities.
The Laropi-Moyo-Afoji road, situated in northwestern Uganda, is expected to benefit a significant population, including agricultural communities and over 500,000 refugees from neighboring countries.
This loan contributes to the African Development Bank Group’s active portfolio in Uganda, comprising 23 projects, with a total commitment of $1,957 million as of November 2023.
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