(Kampala) – Citibank has extended a EUR 126 million loan, approximately UGX 470 billion, to the Ugandan government to support the construction of the 97-kilometer Lusalira to Sembabule road. This road project is expected to improve access to key agricultural zones and urban markets, stimulating economic activity in the central region.
The loan was arranged by Citi and backed by the African Trade and Investment Development Insurance (ATIDI), the Development Bank of Southern Africa (DBSA), and Absa Bank (Mauritius) Limited. The project was officially signed on November 8 in Kampala, with Minister of State for Finance (General Duties) Henry Musasizi representing the Ugandan government at the event.
According to Minister Musasizi, the 10-year loan will cover the entire construction period and aims to provide better connectivity, reduce road maintenance expenses, and cut travel time between local communities and urban centers. “This road project will support local economic activities by enhancing access to social and economic facilities,” he stated.
Ebru Pakcan, Citibank’s Head of Middle East and Africa, highlighted Citibank’s pride in supporting Uganda’s infrastructure development. “This is our first project of this kind with the Ugandan government. The Lusalira to Sembabule road will have a significant impact by connecting the western regions to the national road network, which will greatly improve accessibility and mobility for local communities,” Pakcan noted.
The Lusalira-Sembabule road project is seen as a transformative effort to enhance economic connectivity within Uganda’s central region, benefiting both local communities and the national economy.
| Loan Details | Amount |
|---|---|
| Loan Amount | EUR 126 million |
| Equivalent in UGX | UGX 470 billion |
| Loan Duration | 10 years |
| Road Length | 97 kilometers |
| Project Goal | Improved access, reduced travel time, economic stimulation |
