African Development Bank funds €217 million for Rwanda-Uganda highway

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The Board of Directors of the African Development Bank Group has approved an additional €217.37 million (US$250.5 million) for the Multinational Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project. 

The additional resources will finance the construction of new interchanges, bridges, toll plazas, and service lanes, including the Busega Interchange linking the 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. Once completed, the 27.3-km expressway is expected to cut 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 the surrounding communities.

The total cost of the upgraded Uganda section now stands at €424.61 million (US$489 million), up from the original €176.26 million, reflecting a scaled-up project scope. 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. Construction under the additional financing is scheduled to resume in early January 2026 and conclude by December 2029, with full project completion expected in 2030.

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