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The Board of Directors of the African Development Bank Group (AfDB) has approved a loan of $252.83 million to Uganda, to fund the construction of the Laropi-Moyo-Afoji and Katuna-Muko-Kamuganguzi road.

The financial support consists of two loans: $179.68 million from the bank and $73.15 million from the African Development Fund, the bank group's concessional loan window.

"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," said Augustine Ngafuan, AfDB's Country Manager in Uganda.

"Building this infrastructure will enable economic operators along this route to reduce costs and lead times while improving the efficiency of transport logistics," added Ngafuan.

In addition to the two main roads, the project will also support social and economic initiatives including non-motorised traffic facilities (walkways and cycle tracks), street lighting, market stalls complete with cold storage facilities, support for women traders who currently operate on the roadsides.

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