By Business Insider Reporter
The African Development Bank Group (AfDB) has approved an additional €217.37 million to complete the Busega–Mpigi and Kagitumba–Kayonza–Rusumo Roads Project, a major transport infrastructure initiative expected to reshape East Africa’s regional trade landscape and strengthen Tanzania’s role as a key logistics hub.
The financing targets two crucial cross-border routes – Uganda’s Busega–Mpigi Expressway and Rwanda’s Kagitumba–Kayonza–Rusumo road – both forming vital links between the Northern Corridor and the Central Corridor. Together, they will seamlessly connect Kampala, Kigali, and Dar es Salaam, reducing transport costs and cutting travel time between Uganda and Rwanda by more than half.
A Boost for Tanzania’s transport competitiveness
For Tanzania, the benefits of this upgraded corridor are strategic. The Rusumo border, located between Rwanda and Tanzania, is a gateway for Rwandan and Ugandan exports heading to the Dar es Salaam port, which has recently expanded its cargo-handling capacity under the Port Modernisation Programme.
Once completed, the improved roads will divert more freight to the Central Corridor, offering a faster and more reliable route for importers and exporters from Rwanda, Burundi, Uganda, and eastern DRC. This shift is expected to ease pressure on the congested Northern Corridor (which runs from Mombasa through Kampala to Kigali) and increase Tanzania’s trade volumes.
“Tanzania stands to benefit immensely,” said a transport economist at the University of Dar es Salaam. “With Dar es Salaam port’s improved efficiency and growing investment in logistics parks and inland container depots, this project will attract more regional cargo traffic through Tanzanian territory.”
Industry observers note that Tanzania’s trucking and fuel distribution sectors could also gain from increased cross-border movements. Freight companies based in Mwanza, Kahama and Dodoma are likely to expand their fleets to meet higher demand along the Rusumo–Kigali–Kampala axis.
Infrastructure that connects economies
The Busega–Mpigi section, spanning 27.3 kilometres, will include new interchanges, toll plazas, and bridges to ease chronic congestion near Kampala. In Rwanda, the upgraded Kagitumba–Kayonza–Rusumo road will strengthen connectivity from Kigali to the Tanzanian border, reducing transit delays and boosting trade efficiency.
The AfDB’s funding package comprises an ADB loan of €188.18 million, an ADF loan of €28.31 million, and a NEPAD IPPF grant of US$1 million, with Uganda contributing an additional €30.98 million.
“This project is more than a road; it’s a lifeline for communities and a gateway for trade,” said George Makajuma, the Bank’s Principal Transport Engineer. “The additional financing ensures that the Busega–Mpigi Expressway delivers safer, faster, and more inclusive transport for millions, unlocking the region’s economic potential.”
Empowering communities
Beyond trade facilitation, the project emphasizes inclusive growth. At least 30 percent of the 1,200 jobs to be created during construction and operations will go to women and youth, while roadside communities will receive entrepreneurship and vocational training to tap into roadside business opportunities.
The funding also covers the construction of seven new bridges, 54 kilometres of lined drainage channels, and major road safety upgrades – measures that enhance climate resilience and road durability.
Regional integration and long-term impact
The East African Community (EAC) has identified the Busega–Mpigi and Kagitumba–Rusumo routes as critical arteries for economic integration. They form part of a broader effort to align regional infrastructure with the African Continental Free Trade Area (AfCFTA) framework, making cross-border movement of goods and services faster and more efficient.
Construction is set to resume in January 2026 and conclude by December 2029, with full completion expected by 2030.
As the Central Corridor grows in strategic importance, Tanzania’s position as East Africa’s logistics backbone – anchored by Dar es Salaam port, the Standard Gauge Railway (SGR), and expanding road networks – will be further solidified. “The Kampala–Kigali–Dar es Salaam route will become one of Africa’s most efficient inland trade corridors,” said the UDSM economist. “It’s not just a road project; it’s a catalyst for a more connected, competitive, and prosperous East Africa.”
