The government has signed a pound 110.5 million, about Shs481 billion, financing agreement with Standard Chartered Bank Uganda to upgrade the 115.8-kilometre Kitgum-Kidepo Road, a project officials say will open up Northern Uganda and Karamoja to markets, tourism and industry.
Finance Minister Henry Musasizi and Standard Chartered Uganda Chief Executive Sanjay Rughani signed the deal on Tuesday in Kampala. The road runs from Kitgum Town to Kidepo Valley National Park, one of the country’s most remote but high-potential tourism corridors.
‘This financing package demonstrates our shared commitment to improving connectivity and unlocking the economic potential of Northern Uganda and the Karamoja sub-region,’ Musasizi said during the signing.
According to the Ministry of Finance, the project will cut transport costs, reduce travel time, and strengthen cross-border trade with South Sudan. Musasizi added that it will also support the implementation of the Agro-Industrialisation and Tourism, Manufacturing and Services [ATMS] programme under NDP IV.
Linking mines, factories and parks The minister said the road is designed to serve more than commuter traffic. It will connect major new investments in the region, including the Yaobai Cement and Clinker Factory, a $300 million, about Shs1.14 trillion, plant in Moroto. It will also improve access to Kidepo Valley National Park and complement the planned $72 million, Shs273.6 billion, Kidepo International Airport.
Rughani said the bank’s involvement reflects confidence in government priorities that are ‘both economically viable and developmentally impactful’.
‘The Kitgum-Kidepo Road is a strategic investment that reinforces our long-term role as a trusted Corporate and Investment Bank,’ he said.
Ministers Fred Byamukama of Works and Transport, Mwanja Ndege of Trade, Tom Butime of Tourism, and British High Commissioner Lisa Chesney witnessed the signing.
‘Economics of distance’ set to change For communities in Kitgum, Kotido and Moroto, the road is expected to change the economics of distance. Farmers who currently lose margins to poor roads and high transport fares will have a faster route to Gulu, Kampala and South Sudan markets. Cement, livestock and tourism operators will face lower logistics costs, making Karamoja more competitive for investors who have previously cited poor access as a barrier.
Experts noted that tourism is the immediate winner. Kidepo, often ranked among Africa’s best-kept safari destinations, receives far fewer visitors than Murchison or Queen Elizabeth largely because of access. A paved link to Kitgum and an upgraded airport nearby could increase visitor numbers, park revenue, and jobs in hospitality.
Yet at a macro level, the project ties into Uganda’s push to integrate Karamoja into the formal economy after years of underinvestment. By linking mines, factories and conservation areas with one corridor, government is betting that infrastructure will do what subsidies alone could not: attract private capital north of Gulu.
The Shs481 billion loan adds to Uganda’s road debt, but officials argue the return will come through increased trade volumes, tax from new factories, and tourism receipts.
For Northern Uganda, it is a test of whether connectivity can finally translate into income.