The Government of Uganda has secured €110.5 million (approximately Shs481 billion) in financing from Standard Chartered Bank Uganda to fund the upgrading of the 115.8-kilometre Kitgum-Kidepo road, a strategic infrastructure project expected to strengthen trade, tourism and industrial development across Northern Uganda and the Karamoja sub-region.
The financing agreement was signed on Tuesday at the Ministry of Finance headquarters in Kampala by the Minister of State for Finance (General Duties), Henry Musasizi, and Standard Chartered Bank Uganda Chief Executive Officer, Sanjay Rughani. The project will upgrade the existing gravel road to a Class II bitumen standard highway with engineered drainage systems, culverts and structural shoulders capable of supporting heavy commercial traffic.
Government says the investment forms part of its wider strategy to accelerate economic transformation by improving connectivity between production centres, tourism destinations and regional markets.
“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 opportunities,” Musasizi said during the signing ceremony.
He said the road will directly support Uganda’s Agro-Industrialisation, Tourism, Mineral Development, and Science, Technology and Innovation (ATMS) strategy, one of the government’s flagship programmes aimed at expanding the country’s economy from approximately $50 billion to $500 billion by 2040.
The Kitgum-Kidepo corridor is widely regarded by infrastructure planners as one of Northern Uganda’s most important transport links. By replacing a seasonal gravel road with an all-weather highway, the project is expected to reduce transport costs, improve logistics efficiency and stimulate private investment in agriculture, mining, manufacturing and tourism.
Transport costs currently account for as much as 40 percent of the value of traded goods in Uganda, presenting a major competitiveness challenge for businesses operating in the country’s northern regions. Officials believe the upgraded corridor will significantly reduce these costs while improving market access for farmers and manufacturers.
The road is also expected to strengthen the viability of major industrial investments, including the $300 million (approximately Shs1.1 trillion) Yaobai Cement and Clinker Factory under development in Moroto by improving the movement of raw materials and finished products.
Tourism is another sector expected to benefit substantially from the project. The improved highway will provide reliable year-round access to Kidepo Valley National Park, one of Uganda’s premier wildlife destinations, creating new opportunities for private investment in luxury eco-lodges, hospitality facilities and tour operations.
The road project will also complement the ongoing development of the $72 million (approximately Shs267 billion) Kidepo International Airport, strengthening the region’s position as an emerging tourism and aviation hub capable of attracting higher-value international visitors.
Standard Chartered Bank Uganda said it backed the financing because of the project’s strong long-term economic impact.
“The Kitgum-Kidepo Road is a strategic investment that reinforces our long-term role as a trusted corporate and investment bank,” Rughani said. “We remain committed to financing transformative infrastructure projects that align with Uganda’s national development priorities.”
Beyond improving transport, economists say the corridor could reshape the economic geography of Northern Uganda by lowering logistics costs, encouraging industrial expansion and unlocking cross-border trade opportunities with South Sudan and Kenya.
The financing also reflects the growing role of public-private partnerships in delivering Uganda’s infrastructure programme. With the transport sector allocated nearly Shs8.79 trillion (about $2.4 billion) in the 2026/27 national budget, successful implementation of the Kitgum-Kidepo project is expected to serve as an important benchmark for future collaborations between government and private financial institutions.
The signing ceremony was witnessed by the Minister of State for Works and Transport, Fred Byamukama, the Minister of State for Trade, Sanjay Tanna, the Minister of Tourism, Wildlife and Antiquities, Tom Butime, the British High Commissioner to Uganda, Lisa Chesney, and other senior government officials.
