Uganda has secured €110.5 million (approximately Shs 481 billion) in financing for the construction of the 115.8-kilometre Kitgum–Kidepo Road, a major infrastructure project expected to boost tourism, reduce transport costs and stimulate economic transformation 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 is part of government’s broader infrastructure development agenda aimed at improving transport networks that support industrialisation, regional integration and private sector growth.
Speaking at the signing ceremony, Musasizi said the financing reflects a strong partnership between government and Standard Chartered Bank, adding that the road will unlock economic potential 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.
The road is expected to reduce travel time, lower the cost of transporting goods and services, improve road safety and facilitate cross-border trade with neighbouring countries.
It is also expected to strengthen Uganda’s participation in the African Continental Free Trade Area (AfCFTA) by improving access to regional markets.
Government officials say improved transport infrastructure remains central to Uganda’s long-term goal of transforming into a USD 500 billion economy by 2040.
The Kitgum–Kidepo Road is also expected to support major investments planned for the region, including the USD 300 million Yaobai Cement and Clinker Factory in Moroto, which is projected to create thousands of jobs and boost cement production capacity.
It will further improve access to Kidepo Valley National Park, one of Uganda’s leading tourism destinations, and complement the planned USD 72 million Kidepo International Airport, positioning the region as a growing tourism and investment hub.
With tourism contributing significantly to Uganda’s economy, improved access to Kidepo is expected to increase visitor arrivals, boost tourism revenues and stimulate investment in hospitality and related services.
Musasizi said the project represents more than road construction, describing it as a long-term investment in economic transformation.
“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 the road will reduce logistics costs, minimise post-harvest losses and improve market access for farmers and businesses in the region.
Standard Chartered Bank Uganda CEO Sanjay Rughani said the financing reflects the bank’s commitment to supporting infrastructure projects that deliver both commercial and national development value.
“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 Minister of Works and Transport Fred Byamukama, Minister of Trade, Industry and Cooperatives Sanjay Tanna, and Minister of Tourism, Wildlife and Antiquities Tom Butime, among other senior officials.
Once completed, the Kitgum–Kidepo Road is expected to serve as a key economic corridor, enhancing trade, supporting industrial development and strengthening Northern Uganda and Karamoja’s position as emerging hubs for tourism, agriculture, manufacturing and cross-border commerce.
