ADFD Finances Strategic Road Project To Enhance Connectivity In Eastern Uganda

The Abu Dhabi Fund for Development (ADFD) has entered into a loan agreement with Uganda's government, valued at AED91.8 million (US$25 million). This funding supports a strategic road project in Eastern Uganda, connecting Kumi, Ngora, Serere, and Kagwara districts. The initiative aims to boost transport infrastructure, fostering economic growth and improving access to essential services and commercial hubs.

Mohammed Saif Al Suwaidi, Director-General of ADFD, and Matia Kasaija, Uganda's Minister of Finance, Planning and Economic Development, signed the agreement through correspondence. The project involves upgrading a 98.3-kilometre road to include a 7-metre-wide roadway with 2-metre-wide shoulders on each side. ADFD’s financing will cover civil works, bridge construction, and related infrastructure development.

The road project is expected to improve road safety, reduce travel time and transportation costs, and boost commercial activity in the Kagwara region near Lake Kyoga. This will contribute to broader economic and social development. Mohammed Saif Al Suwaidi commented on the agreement: "Our strategic partnership with Uganda underscores ADFD’s commitment to advancing comprehensive development."

Al Suwaidi further stated that financing this road project is a significant step towards enhancing life quality in Eastern Uganda. By improving connectivity within the national transport network, the project will facilitate better access to essential services and unlock new economic opportunities. These include job creation during construction and operational phases.

Matia Kasaija expressed gratitude for ADFD’s ongoing support. He reaffirmed the project's crucial role in enhancing infrastructure in Eastern Uganda by improving connectivity and boosting regional trade. Additionally, he noted that this collaboration reflects the growing partnership between the two nations.

Kasaija also expressed interest in expanding future cooperation with ADFD across various economic and development sectors. This collaboration builds on the enduring partnership between ADFD and Uganda that began in 1977. Over the years, ADFD has financed three major development projects across key sectors with a total value of AED79.3 million.

Commitment to Sustainable Development

This cooperation reaffirms ADFD’s dedication to supporting sustainable development goals of partner nations while fostering lasting social and economic impact. The joint effort between ADFD and Uganda highlights their shared commitment to advancing infrastructure projects that benefit communities around Lake Kyoga.

The road project's co-financing involves contributions from ADFD, the Islamic Development Bank, and the Government of Uganda. This collaborative approach ensures comprehensive support for enhancing transport infrastructure in Eastern Uganda.

With inputs from WAM