KAMPALA, July 1 – Uganda has signed a €110.5 million (US$126.1 million) financing agreement with the local subsidiary of Standard Chartered to fund the construction of a strategic road in the country’s northeastern Karamoja region, strengthening transport infrastructure and supporting economic development.
According to Uganda’s Ministry of Finance, the funding will support the construction of a 115.8-kilometre road that is expected to improve connectivity in one of the country’s most remote regions, which borders Kenya.
Announcing the agreement in a post on X, the ministry said the project will “reduce transport costs and strengthen regional trade.”
Karamoja has attracted growing investor interest in recent years due to its significant mineral resources, including gold, with improved infrastructure viewed as essential to unlocking the region’s economic potential and facilitating cross-border commerce.
The Ministry of Finance said the new road will also support several major investments currently underway in the region, including a US$300 million cement factory and a US$72 million international airport, both of which are expected to stimulate industrial activity and create employment opportunities.
The project forms part of Uganda’s broader infrastructure development strategy, which seeks to improve transport networks, lower logistics costs and strengthen regional integration through enhanced road connectivity.
Once completed, the road is expected to improve the movement of goods and people, support mining and industrial investments, and reinforce trade links between Uganda and neighbouring Kenya, contributing to long-term economic growth in the East African nation.
