The Ugandan government has secured €110.5 million (approximately Shs481 billion) in financing for the long-awaited 115.8-kilometre Kitgum–Kidepo Highway, a landmark infrastructure project expected to transform Northern Uganda by boosting tourism, trade, agriculture and industrial development.
The financing agreement, signed between Finance Minister Henry Musasizi and Standard Chartered Bank Uganda Chief Executive Officer Sanjay Rughani, marks another major step in government’s ambitious infrastructure expansion programme aimed at improving regional connectivity and unlocking economic opportunities in the Karamoja sub-region.
Once completed, the highway will provide an all-weather road linking Kitgum to the world-renowned Kidepo Valley National Park, while also strengthening Uganda’s transport links to neighbouring South Sudan and Kenya. The project is expected to stimulate investment, lower transport costs and improve access to markets for farmers and businesses across Northern Uganda.
Speaking during the signing ceremony, Finance Minister Henry Musasizi described the agreement as far more than a financing arrangement, saying it represents an investment in Uganda’s long-term economic transformation.
“Today’s signing is not simply about financing a road. It is about investing in Uganda’s future. It is about connecting farmers to markets, industries to raw materials, tourists to destinations and businesses to opportunity. Together with our partners, we are laying another foundation for a more productive, competitive and prosperous Uganda,” Musasizi said.
The minister noted that the Kitgum–Kidepo Highway is a strategic project under the government’s Fourth National Development Plan (NDP IV) and aligns with the country’s broader vision of modernising transport infrastructure to support industrialisation, trade and regional integration.
According to Musasizi, reliable transport infrastructure remains one of the most important ingredients for accelerating Uganda’s economic growth.
“This road will strengthen tourism, trade and investment in Karamoja and Northern Uganda. It will reduce the cost of doing business, improve regional competitiveness and create new economic opportunities for our people,” he said.
He added that the road also supports the objectives of Uganda Vision 2040, which identifies modern transport infrastructure as a key driver of socio-economic transformation and national competitiveness.
For decades, travellers heading to Kidepo Valley National Park have relied on a gravel road that becomes difficult to navigate during the rainy season. The poor condition of the road has increased transport costs, discouraged private investment and slowed tourism growth in one of Uganda’s most scenic but least accessible regions.
The new bitumen-standard highway is expected to dramatically reduce travel times while making year-round access to the national park possible.
Boost tourism
Tourism officials believe the improved road will complement the recently launched US$72 million Kidepo International Airport project, positioning the region as one of East Africa’s fastest-growing tourism destinations.
Beyond tourism, government expects the highway to become a major economic corridor supporting agriculture, mining and manufacturing.
The road will provide improved access to major investments, including the more than US$300 million Yaobai Cement and Clinker Factory in Moroto, while creating better transport links for agricultural produce from Northern Uganda to national and regional markets.
The project is also expected to strengthen Uganda’s participation in the African Continental Free Trade Area (AfCFTA) by improving cross-border movement of goods to South Sudan and Kenya.
Officials say reduced transport costs will increase the competitiveness of businesses operating in Northern Uganda while attracting fresh investment into sectors such as agro-processing, logistics and mineral development.
The financing also reflects the growing role of commercial banks in supporting major public infrastructure projects at a time when governments across Africa are seeking innovative ways to bridge infrastructure financing gaps.
Speaking after signing the agreement, Standard Chartered Bank Uganda Chief Executive Officer Sanjay Rughani said the bank remains committed to supporting projects that generate long-term economic growth and national development.
“The signing underscores our continued commitment to supporting government priorities that are both economically viable and developmentally impactful. The Kitgum–Kidepo Road is a strategic investment that reinforces our long-term role as a trusted Corporate and Investment Bank,” Rughani said.
Economic growth
He said infrastructure remains one of the strongest catalysts for inclusive economic growth because it improves productivity, creates employment and attracts private capital.
“At Standard Chartered, we believe financing transformative infrastructure is about creating opportunities for businesses, communities and future generations. This project will improve connectivity, unlock investment and contribute meaningfully to Uganda’s long-term development agenda,” Rughani added.
Industry observers say the transaction demonstrates increasing confidence by international financial institutions in Uganda’s infrastructure programme despite global economic uncertainties.
The signing ceremony attracted senior government officials and development partners, highlighting the strategic importance attached to the project.
Among those present were Works and Transport Minister Fred Byamukama, Trade, Industry and Cooperatives Minister Sanjay Tanna, Tourism, Wildlife and Antiquities Minister Tom Butime, British High Commissioner Lisa Chesney, and senior representatives from government ministries and the banking sector.
Their attendance reflected the cross-cutting impact expected from the project across tourism, agriculture, trade, manufacturing and regional development.For local communities, the benefits extend beyond faster travel.
Improved road connectivity is expected to reduce post-harvest losses by enabling farmers to transport produce to markets more quickly and at lower cost. Businesses will benefit from reduced logistics expenses, while improved accessibility is expected to enhance the delivery of health, education and other social services in remote communities.
Construction itself is also expected to create hundreds of direct and indirect jobs, providing employment opportunities for local residents and boosting incomes across the region.
The project aligns with Uganda’s National Transport Master Plan, which prioritises upgrading strategic road corridors to improve mobility, strengthen regional competitiveness and support economic resilience.
It also advances the constitutional objective requiring government to promote agricultural, industrial and technological development through strategic public investment.
Analysts, however, caution that securing financing is only the first step.
They say successful delivery of the highway will depend on timely implementation, effective supervision of contractors and strict adherence to environmental and social safeguards, particularly given the ecological sensitivity of the Kidepo ecosystem.
Environmental experts have called for careful planning to ensure construction activities protect wildlife habitats while safeguarding the livelihoods of surrounding communities.
Equally important will be ensuring that local businesses and residents benefit from procurement opportunities, employment and improved access to public services arising from the investment.If implemented on schedule, the Kitgum–Kidepo Highway could become one of Uganda’s most transformative infrastructure projects in recent years.
Market Linkage
By linking farmers to markets, tourists to one of Africa’s most spectacular wilderness destinations, industries to raw materials and border communities to regional commerce, the highway promises to reshape the economic landscape of Northern Uganda.
For a region that has endured decades of conflict, underinvestment and isolation, the project signals a new chapter—one in which modern infrastructure serves as the foundation for inclusive growth, expanded trade and sustainable development.
With financing now secured, attention will shift to implementation as government and its partners seek to turn the long-awaited road into a catalyst for prosperity across Northern Uganda and the Karamoja sub-region.
Author Profile
- Charles Gazza Kodili is a seasoned journalist with over 20 years of experience in the media industry. He holds a Bachelor of Arts degree in Mass Communication. He’s currently the Chief Editor at the Investigator.
Charles can also be reached via; Tel: +256 774 108978
Email: [email protected]
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