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Home » AfDB Allocates €217 Million for Uganda-Rwanda Expressway, Totaling €424 Million

AfDB Allocates €217 Million for Uganda-Rwanda Expressway, Totaling €424 Million

by kevin Atamba
November 14, 2025
in General News
Uganda Rwanda expressway project

Uganda Rwanda expressway project-Credits afdb

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The African Development Bank (AfDB) has committed an additional €217 million to the Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project, bringing the total investment in the Uganda-Rwanda expressway to €424 million. The project aims to significantly reduce the travel time between Kampala, Uganda’s capital, and Kigali, Rwanda’s capital, from over two hours to just 45 minutes.

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This major infrastructure development is designed to improve access to markets, social services, and reduce congestion in Busega and Mpigi, areas that currently serve as bottlenecks between the two capitals. The new financing will help fund the construction of crucial elements, including interchanges, bridges, toll areas, and service lanes, particularly the Busega Interchange.

The €217 million funding includes a €188 million loan, with additional contributions from the Ugandan government and the AfDB’s subsidiary, the African Development Fund. This project is expected to create 1,200 jobs—800 during the construction phase and 400 during the expressway’s operation.

Originally, the project’s cost was estimated at €176 million, but with the expanded scope, the new cost of €424 million reflects the broader infrastructure requirements. The AfDB’s contribution in 2016 included €210 million in loans and grants to the Governments of Uganda and Rwanda for the Busega to Mpigi section of the expressway.

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The 25.7km Busega to Mpigi Expressway will be constructed by a Chinese state-owned joint venture, consisting of China Civil Engineering Construction Cooperation and China Railway 19th Bureau Group, with construction set to restart in January 2026. The project is due for completion by December 2029, with full operations expected by 2030.

George Makajuma, the AfDB’s principal transport engineer, emphasized the broader impact of the project, stating, “This project is more than a road; it is a lifeline for communities and a gateway for trade.” He added, “The additional financing ensures that the Busega–Mpigi Expressway delivers safer, faster, and more inclusive transport for millions, unlocking the region’s economic potential.”

This landmark development is set to improve regional connectivity, foster trade, and reduce travel time, contributing to East Africa’s growing infrastructure network and supporting sustainable economic growth across the region.

Tags: AfDBAfrican Development BankBusega Mpigi roadEast Africa transportexpressway financinginfrastructure projectregional tradeUganda Rwanda expressway
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