Rwanda and Uganda are set to deepen regional trade and connectivity following the African Development Bank Group’s (AfDB) approval of an additional €217.37 million for the Multinational Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project.
The new financing aims to accelerate progress on a key transport corridor linking Kigali and Kampala, a route vital to the movement of goods and people between the two countries.
The additional funds will support the construction of interchanges, bridges, toll plazas, and service lanes, including the major Busega Interchange, which will connect the expressway to Kampala’s Northern Bypass.
The upgrades are expected to ease long-standing congestion between Busega and Mpigi, one of Uganda’s busiest routes on the Northern Corridor, which serves as the main gateway to Rwanda.
The financing package also covers land compensation, project management, and capacity enhancement for Uganda’s Ministry of Works and Transport, ensuring smoother implementation following recent institutional restructuring.
Once completed, the 27.3-kilometre expressway will cut travel time from more than two hours to under 45 minutes, improving access to markets, schools, and health services for more than one million residents and traders across the Busega–Mpigi area and beyond.
With the expanded scope, the total cost of the Uganda section now stands at €424.61 million, up from €176.26 million. AfDB will provide the bulk of the funds — an ADB loan of €188.18 million, an ADF loan of €28.31 million, and a NEPAD IPPF grant of $1 million — while the Government of Uganda contributes €30.98 million.
The project also includes the construction of seven new bridges and 54 kilometres of lined drainage channels, which will improve safety and climate resilience. Additionally, the initiative will generate more than 1,200 jobs, with at least 30% reserved for women and youth, and will support local women entrepreneurs through skills and business development opportunities along the corridor.
“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 AfDB’s approval reflects continued commitment to regional integration and economic growth across East Africa. Once completed, the road network will play a critical role in reducing transport costs, boosting cross-border trade, and creating sustainable jobs for both Rwandans and Ugandans.
Construction under the new financing is scheduled to begin in January 2026 and conclude by December 2029, with full project completion expected in 2030, marking a major milestone in East Africa’s pursuit of shared prosperity and stronger regional connectivity.
