AfDB Injects €217 Million to Complete Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads, Enhancing Uganda–Rwanda Trade
The African Development Bank Group (AfDB) has approved an additional €217.37 million to complete the Multinational Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project, a key regional infrastructure initiative aimed at strengthening connectivity and cross-border trade between Uganda and Rwanda.
The new financing will support the construction of interchanges, bridges, toll plazas, and service lanes, including the crucial Busega Interchange, which links the expressway to the Northern Bypass.
Once completed, the project is expected to significantly reduce chronic traffic congestion between Busega and Mpigi, one of the most congested sections along the Northern Corridor that connects Kampala and Kigali.
Funding will also cover land compensation, project management, and capacity-building initiatives within Uganda’s Ministry of Works and Transport to facilitate smooth implementation following recent institutional reforms.
The 27.3-kilometre expressway is projected to cut travel time from over two hours to less than 45 minutes, improving access to markets, healthcare, and other essential services for more than one million residents and traders in Busega, Mpigi, and surrounding communities.
With the expanded project scope, the total cost of Uganda’s section has risen to €424.61 million, up from the original €176.26 million.
The Bank Group’s contribution includes an ADB loan of €188.18 million, an ADF loan of €28.31 million, and a NEPAD-IPPF grant of $1 million. The Government of Uganda will provide an additional €30.98 million.
The financing will also enable the construction of seven new bridges and 54 kilometres of lined drainage channels, while generating more than 1,200 jobs — 800 during construction and 400 during operation — with at least 30% of opportunities reserved for women and youth.
The project also includes women’s empowerment initiatives focused on entrepreneurship and skills training, particularly in roadside business ventures.
“This project is more than a road; it is a lifeline for communities and a gateway for trade,” said George Makajuma, the Bank’s Principal Transport Engineer and Project Task Manager.
“The additional financing ensures that the Busega–Mpigi Expressway delivers safer, faster, and more inclusive transport for millions, unlocking the region’s economic potential.”
The Board’s approval aligns with Uganda’s ongoing commitment to infrastructure development as a driver of economic growth and regional competitiveness.
Once operational, the expressway is expected to lower transport costs, boost trade, and stimulate investment across multiple sectors.
Construction activities under the new financing package are scheduled to resume in early 2026 and conclude by December 2029, with full project completion anticipated in 2030.
