This funding encompasses a $179.68m loan from the AfDB alongside $73.15m from the African Development Fund, the bank group’s concessional lending window.
AfDB Uganda country manager Augustine Ngafuan said: “The Laropi-Moyo-Afoji/Katuna-Muko-Kamuganguzi road project is intended to improve rural transport connectivity and facilitate regional integration in the districts of Kabale, Rubanda, and Moyo, in Uganda.
“It will boost incomes, deepen regional integration, and facilitate trade while opening up an alternative transport corridor linking Uganda with South Sudan.
“Building this infrastructure will enable economic operators along this route to reduce costs and lead times while improving the efficiency of transport logistics.”
This project will aid some complementary social projects aside from the two main roads.
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These projects include the construction of 5km of roads in small towns and non-motorised transportation infrastructure within Moyo and Laropi in north-western Uganda to enhance mobility, as well as street lighting to boost the business setting for traders, and a regional bus terminal in Moyo.
It also includes the development of market stalls with cold storage facilities in Kashasha/Katuna, Moyo, and Laropi to assist female merchants who now operate on the roadside to increase their income.
Flood protection measures will be carried out in Laropi to increase resilience to the effects of climate change and prevent interruptions of commercial activity.
Additionally, on the Uganda-South Sudan border, a one-stop border station will be built in Afoji/Jale to promote commerce and transport activities while facilitating customs harmonisation and coordination of border-crossing operations and supply chains.