KAMPALA.The African Development Bank Group (AfDB) Board of Directors has finally approved an additional €217.37 million (Shs 910bn) to finance the ultinational Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project.
The move the Bank said will enforce Uganda’s and Rwanda’s shared vision of stronger regional connectivity and trade.”
In a statement issued from Abidjan, the Bank said the additional resources will finance the construction of new interchanges, bridges, toll plazas, and service lanes, including the Busega Interchange linking the Kampala–Mpigi Expressway to the Northern Bypass.
“These improvements will address chronic traffic congestion between Busega and Mpigi, a key bottleneck along the Northern Corridor connecting Kampala to Kigali,” the AfDB said.
The four-lane, 23.7 km expressway has been under construction since 2020 ,but has suffered repeated setbacks.
The project’s completion date has been pushed from 2023 to at least the end of 2026, following a string of challenges.
Officials said the Busega–Mpigi Expressway faced multiple obstacles, including complex disputes over property ownership and cultural sensitivities such as the Nabukalu tree, difficulties in securing rights of way, and disruptions from the COVID-19 pandemic which caused lengthy lockdowns and stalled contractor mobilisation. The project was also redesigned to reduce costs and limit displacement of communities, but this slowed progress and increased expenses.
An Auditor General’s report revealed that the initial contract was signed without detailed designs, leading to major revisions and cost escalations.
The AfDB said the funds will also cover land compensation, project management, and capacity enhancement for Uganda’s Ministry of Works and Transport “to ensure smooth execution following recent institutional restructuring.”
Once completed, the 27.3-kilometre expressway is expected to reduce travel time from over two hours to under 45 minutes, improving access to markets and social services for more than one million residents and traders in Busega, Mpigi, and neighbouring districts.
“The total cost of the upgraded Uganda section now stands at €424.61 million (about Shs1.7trillion) up from the original €176.26 million(about 715.6billion) , reflecting a scaled-up project scope,” the statement read.
“The Bank Group will provide €217.37 million — comprising 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 will contribute €30.98 million.”
The AfDB said the additional financing will also support “the construction of seven new bridges and 54 kilometres of lined drainage channels,” and will generate over 1,200 jobs — 800 during construction and 400 during operations — “with at least 30% of opportunities reserved for women and youth.”
It added that women will benefit from entrepreneurship and skills development programs linked to roadside economic opportunities.
“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 decision, the statement continued, “comes as Uganda continues to invest heavily in infrastructure to stimulate economic growth and enhance competitiveness.”
Construction under the additional financing is scheduled to resume in January 2026 and conclude by December 2029, with full completion expected in 2030.