ARUA .Government has secured a major infrastructure boost after the African Development Bank (AfDB) approved nearly €156 million (about Shs 650 billion) to transform Arua Airport into an international-standard facility.
The a move ,according to sector players will unlock trade, tourism and investment opportunities across the West Nile region and neighbouring countries like DRC and South Sudan.
The financing, approved by the Board of Directors of the African Development Bank Group, will fund Phase I of the Uganda Airports Development Programme, which aims to upgrade Arua Airport into a modern regional aviation hub.
The project, valued at €157.76 million (approximately Shs 657 billion), will see the construction of a 3.5-kilometre paved runway capable of handling wide-body aircraft such as the Boeing 777, alongside new taxiways, aprons, a passenger terminal with capacity for 700,000 travellers annually and a cargo terminal designed to handle 25,000 tonnes of cargo per year.
Additional infrastructure will include a new control tower, access roads, parking facilities and modern aviation safety systems, according to AfDB’s statement dated June 16,2026.
The Bank will provide €141.15 million (about Shs 588 billion) through its ordinary lending window and an additional €14.84 million (approximately Shs 62 billion) through the African Development Fund, while the Government of Uganda will contribute €1.77 million (around Shs 7.4 billion) in kind.
Industry observers say the investment could significantly reshape Uganda’s aviation and logistics landscape, particularly in the underserved West Nile sub-region.
“This project is about more than an airport. It is about connecting people to opportunity, opening new markets for businesses, supporting tourism, and strengthening Uganda’s role as a regional trade and logistics hub,” said Mike Salawou, Director for Infrastructure and Urban Development at the African Development Bank Group.
Strategically located about 450 kilometres northwest of Kampala, Arua serves as a gateway to Uganda’s West Nile region and neighbouring markets in South Sudan and the Democratic Republic of the Congo.
According to the Uganda Civil Aviation Authority, Arua is currently the country’s second-busiest airport after Entebbe and has significant growth potential.
“The airport will strengthen aviation infrastructure and regional connectivity, and is expected to stimulate social and economic transformation for the region,” said UCAA Director General Fred Bamwesigye.
Bamwesigye added that the airport’s expansion would not only improve passenger movement but also catalyse investment in agriculture, trade, logistics and mineral development across West Nile.
More than 500,000 residents in Arua City and District are expected to benefit directly from the programme, while the wider West Nile region, home to over 3.3 million people, is projected to gain from improved connectivity and increased economic activity.
The construction phase is expected to create about 500 direct jobs and more than 1,400 indirect jobs in sectors such as tourism, agriculture and trade.Currently , Uganda has only Entebbe as the only international airport but plans are underway to finalise one in Hoima and construct three more in Arua , Mbarara and Karamoja.