Uganda has secured €110.5 million (about Shs480 billion) in financing to construct the 115.8-kilometre Kitgum–Kidepo Road, a major infrastructure project expected to improve connectivity, boost tourism and unlock economic opportunities in Northern Uganda and the Karamoja sub-region.
The financing agreement was signed on Tuesday by Minister of State for Finance (General Duties) Henry Musasizi and Standard Chartered Bank Uganda Chief Executive Officer Sanjay Rughani.
The project forms part of the government’s wider infrastructure development agenda aimed at improving transport networks, reducing business costs and supporting industrialisation and regional trade.
Speaking at the signing ceremony, Musasizi said the financing demonstrated a strong partnership between the government and Standard Chartered Bank, adding that the road would play a key role in transforming the economic prospects of communities in Northern Uganda and Karamoja.
“The financing package demonstrates our shared commitment to improving connectivity and unlocking the economic potential of Northern Uganda and the Karamoja sub-region,” Musasizi said.
More Read
The Kitgum–Kidepo Road is expected to reduce travel times, lower the cost of transporting goods and services, improve road safety and strengthen access to markets for communities and businesses.
Officials said the road will also support Uganda’s participation in the African Continental Free Trade Area (AfCFTA) by improving links to regional markets and facilitating cross-border commerce with neighbouring countries.
Improved transport infrastructure is central to Uganda’s long-term development plans, including the government’s ambition to transform the economy into a US$500 billion economy by 2040.
More Read
Beyond trade and transport, the project is expected to have a major impact on tourism by improving access to Kidepo Valley National Park, one of Uganda’s most important wildlife destinations.
The government hopes better road connectivity will increase tourist arrivals, raise tourism revenues and encourage investment in hotels, hospitality services and other tourism-related businesses.
The road project is also expected to complement the planned US$72 million Kidepo International Airport, which officials say will position the region as a growing tourism and investment hub.
Northern Uganda and Karamoja have significant economic potential in agriculture, mining, tourism and manufacturing, but poor transport links have historically limited investment and market access.
The new road is expected to support major developments planned for the region, including the US$300 million Yaobai Cement and Clinker Factory in Moroto, which is projected to create thousands of jobs and increase Uganda’s cement production capacity.
Musasizi described the project as more than a transport investment, saying it represented a broader effort to connect communities, industries and markets.
More Read
“Today’s signing is not simply about financing a road. It is about investing in Uganda’s future. It is about connecting farmers to markets, industries to raw materials, tourists to destinations and businesses to opportunity,” he said.
He added that improved road access would help reduce logistics costs, minimise post-harvest losses and allow farmers and businesses in the region to access larger markets.
Standard Chartered Bank Uganda CEO Sanjay Rughani said the financing reflected the bank’s commitment to supporting infrastructure projects with both commercial and national development benefits.
“The Kitgum–Kidepo Road is a strategic investment that reinforces our long-term role as a trusted Corporate and Investment Bank,” Rughani said.
The signing ceremony was attended by senior government officials, including Works and Transport Minister Fred Byamukama, Trade, Industry and Cooperatives Minister Sanjay Tanna, and Tourism, Wildlife and Antiquities Minister Tom Butime.
Once completed, the Kitgum–Kidepo Road is expected to become a key economic corridor linking communities, businesses and tourism destinations while strengthening Northern Uganda and Karamoja’s role in regional trade.
The project is seen as a major step toward reducing regional inequalities, improving economic inclusion and creating new opportunities in areas that have historically faced infrastructure challenges.
