ABU DHABI, 15th October, 2025 (WAM) -- Abu Dhabi Fund for Development (ADFD) has signed a loan agreement with the Government of the Republic of Uganda valued at AED91.8 million (US$25 million) to support the development of a strategic road project that connects four key districts in Eastern Uganda including Kumi, Ngora, Serere, and Kagwara.

The project aims to enhance the country's transport infrastructure, thereby enabling economic growth and improving access to essential services and commercial centres. It is co-financed by ADFD, the Islamic Development Bank and Government of Uganda.

The agreement was signed by correspondence between Mohammed Saif Al Suwaidi, Director-General of Abu Dhabi Fund for Development, and Matia Kasaija, Minister of Finance, Planning and Economic Development of Uganda.

The project involves the upgrading of a 98.3kilometre road, creating a 7-metre-wide roadway with 2-metre-wide shoulders on each side. ADFD's financing will cover civil works, bridge construction, and related infrastructure development. Itis expected to enhance road safety, reduce travel time and transportation costs, and strengthen commercial activity, particularly in the Kagwara region near Lake Kyoga, thereby contributing to broader economic and social development.

Commenting on the agreement, Mohammed Saif Al Suwaidi said, "Our strategic partnership with Uganda underscores ADFD's commitment to advancing comprehensive development. It also aligns with our broader objective of strengthening the transport sector, which plays a critical role in promoting sustainable economic growth within developing nations."

He added, "Financing this road project represents a major step towards enhancing the quality of life in Eastern Uganda. By enhancing connectivity within the national transport network, the project will facilitate better access to essential services and unlock new economic opportunities, including job creation during construction and operational phases.

Matia Kasaija expressed his appreciation for ADFD's ongoing support, reaffirming the project's important role in enhancing infrastructure in Eastern Uganda, improving connectivity, bolstering regional trade, and reinforcing the development of communities around Lake Kyoga.

He noted that the collaboration reflects the growing partnership between the two nations and expressed his interest in expanding future cooperation with ADFD across a broader range of economic and development sectors.

This collaboration builds on the enduring partnership between ADFD and the Republic of Uganda, which began in 1977. Over the years, ADFD has financed three major development projects across key sectors, with a total value of AED79.3 million. The cooperation reaffirms ADFD's commitment to supporting the sustainable development goals of partner nations and fostering lasting social and economic impact.