Published on 10/01/2025
Parliament approved government plans to secure US$15.22 million and US$73.15 million loans from the African Development Bank Group.
These funds will finance the construction of two critical road projects: Laropi-Moyo-Afoji Road and Katuna-Muko-Kamuganguzi Road.

The motion was tabled by Hon. Henry Musasizi, Minister of State for Finance, Planning, and Economic Development (General Duties), during a plenary session held on January 9, 2025. Speaker Anita Among presided over the proceedings, emphasizing the transformative potential of these projects for regional connectivity and economic growth.
The decision originated from a government proposal presented on 18 September 2024, seeking additional funding from the African Development Fund for the same projects. The proposal was referred to the Committee on National Economy for further scrutiny.
Musasizi said that the project aims to provide all-weather roads to boost tourism flows from Southwestern Uganda and improve access to mines. It will also enhance regional connectivity through a permanent bridge at Laropi and a one-stop Uganda-South Sudan border post.
“The project scope remains the same as initially approved in August 2020. It includes four components; road and bridge civil works, project implementation support services, institutional support, and compensation for project-affected persons,” Musasizi stated.
The Chairperson of the Committee on National Economy, Hon. John Bosco Ikojo described the loan facility as beneficial due to its national reach covering three regions of the country.

“The US$73 million loan from the African Development Fund will be repaid over 50 years with a 10-year grace period. It carries no interest but includes a 0.1 per cent annual service charge on the disbursed balance” he said.
Parliament also approved a government request to borrow over Shs171.63 billion from Agence Française de Development (AFD) for the Lake Victoria Water and Sanitation Project.
Musasizi said the funding aims to expand the distribution network, enhance the New Katosi Water System and increase clean water access in the Greater Kampala Metropolitan Area (GKMA).
The loan approval increases Uganda’s external debt exposure by US$252.83 million and raises the public debt share of GDP by 0.13 per cent
However, Musasizi assured Parliament that the debt remains manageable under the Charter of Fiscal Responsibility.