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AfDB to commit US $105 m for the Kenya-Uganda road upgrade

Multilateral development bank, African Development Bank (AfDB) is committing US $105m in its attempt to support infrastructure development in East Africa. The finance institution seeks to upgrade a 73 km road transport network linking Kenya and Uganda to facilitate their trading activities and economic growth.

The bank has heavily invested in many African countries propelled by its mission to alleviate poverty level and improve the living standards of Africans.

Rural road, Kapchorwa-Suam is an important transport network, especially for agricultural produce. Its devastating state, however, has hampered the transportation of goods and people, compelling AfDB to financially support its revamp. Its poor condition has had a ripple effect on the quality of commodities transported, affecting the on-time delivery of the goods. Such has been the barrier to rural development, with many businesses preferring regions with better infrastructure to cut on the operation cost. This has led to congestion in the urban areas, and limited growth in the rural grounds.

Bilateral ties

Kenya and Uganda have enjoyed healthy bilateral ties over the years catapulted by improved trading relations. Trade has been a paramount ingredient in supporting economic growth and opening investment opportunities as well as the creation of employment opportunities.

Also read: Can expansion of Africa’s railway network boost inter-regional development?

East African countries highlighted the need to develop infrastructure in their new financial year review to facilitate the growth of imports and exports. Foreign investors are understood to be keen to invest in business environments with better infrastructure to affect their businesses.

Other factors that have crippled the robust growth of the two countries are poverty and unemployment. High level of dependency has limited the productivity of the nations slowing their growth rate. Entrepreneurship has taken centre-stage to create job opportunities and encourage independence. The agriculture sector is the mainstay of both states and youths have been encouraged to venture into the sector to increase the production of the field.

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