Parliament Approves Loans for Infrastructure Development in West Nile and Other Regions.

Parliament has approved government requests to borrow US$15.22 million and US$73.15 million from the African Development Bank Group for the construction of the Laropi-Moyo-Afoji Road and Katuna-Muko-Kamuganguzi Road, with a significant focus on boosting development in the West Nile region.

The Laropi-Moyo-Afoji Road project, which falls within the West Nile region, aims to enhance regional connectivity by providing an all-weather road, a permanent bridge at Laropi, and a one-stop Uganda-South Sudan border post. 

These improvements are expected to stimulate economic growth in the region by facilitating trade, improving access to mines, and boosting tourism flows. Presenting the motion during the plenary session chaired by Speaker Anita Among on Thursday, 09 January 2025, the Minister of State for Finance, Planning, and Economic Development (General Duties), Hon. Henry Musasizi, highlighted the favorable loan terms. 

“The US$73.15 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,” Musasizi stated.

Additionally, Parliament approved a request to borrow over Shs171.63 billion from Agence Française de Développement (AFD) for the Lake Victoria Water and Sanitation Project, which aims to expand access to clean water in the Greater Kampala Metropolitan Area.

Musasizi assured Parliament that while these loans increase Uganda's external debt exposure by US$252.83 million and raise the public debt share of GDP by 0.13 per cent, the debt remains manageable under the Charter of Fiscal Responsibility. The Chairperson of the Committee on National Economy, Hon. John Bosco Ikojo, emphasized the national importance of the loan facility, particularly its focus on the West Nile region.

 “This loan is beneficial because it not only improves infrastructure in the West Nile but also strengthens Uganda’s regional connectivity and economic growth potential,” he said.

Hon. Ikojo

The approved projects align with the government’s long-term objectives to enhance infrastructure development and improve service delivery across the country, with the Laropi-Moyo-Afoji Road serving as a critical development pillar in the West Nile region.

Via Uganda Parliament.