The Government of Uganda has secured financing worth EUR110.5 million (approximately UGX480.9 billion) from Standard Chartered Uganda to finance the upgrading of the 115.8-kilometre Kitgum–Kidepo Road, a project expected to enhance trade, tourism and economic activity in Northern and North-Eastern Uganda.
The financing agreement was signed on Tuesday at the Ministry of Finance, Planning and Economic Development. The project will see the road paved, creating a vital transport link between the Acholi and Karamoja sub-regions while strengthening connectivity to neighbouring South Sudan.
Government says the upgraded road will lower transport costs, improve access to markets, promote tourism and facilitate regional trade by providing a more reliable transport corridor.
Speaking during the signing ceremony, Finance Minister Henry Musasizi described the road project as a strategic investment that aligns with Uganda’s ambition of transforming into a USD500 billion economy by 2040. He said improved infrastructure remains central to reducing the cost of doing business, attracting private investment and stimulating growth across sectors such as agriculture, tourism, mining, oil and gas, and science and technology.
Musasizi highlighted Karamoja’s growing economic importance, citing the 2024 Uganda Bureau of Statistics livestock census, which estimates the sub-region has 2.4 million cattle and 1.8 million sheep. He noted that better road infrastructure will enable livestock farmers to access markets more efficiently while supporting major investments, including the USD300 million Ya Yobai Cement and Clinker Factory in Moroto.
He urged the contractor to commence work without delay and ensure the project is completed within the agreed timeline.
Works and Transport Minister Fred Byamukama welcomed the financing, saying the road upgrade has been a long-standing priority for residents of Kitgum and Karamoja. He said the project will improve access to Kidepo Valley National Park, complement the ongoing development of Kidepo International Airport, facilitate the movement of people and goods, and unlock opportunities in tourism, trade and mineral development.
Byamukama challenged the contractor to deliver the project ahead of schedule and assured both financiers and contractors of government support throughout implementation.
Tourism Minister Tom Butime said modern road infrastructure is essential for the growth of Uganda’s tourism industry, arguing that visitors require reliable transport networks to access the country’s attractions. He noted that upgrading the Kitgum–Kidepo Road will enhance access to Kidepo Valley National Park and support the country’s “Explore Uganda, the Pearl of Africa” tourism campaign.
Trade, Industry and Cooperatives Minister Sanjay Tanna said the improved road network will create new economic opportunities, particularly in Karamoja, by easing access to markets and encouraging investment. He also praised Standard Chartered Uganda for its continued support in financing strategic infrastructure projects that contribute to national development.
Standard Chartered Uganda Chief Executive Officer Sanjay Rughani said the financing demonstrates the bank’s long-term commitment to supporting Uganda’s development agenda through investments in transport, energy, water and sanitation, agriculture and budget financing.
He added that the bank will continue mobilising capital and providing innovative financing solutions to support the government’s Ten-Fold Growth Strategy, aimed at accelerating economic transformation and sustainable growth.
