Uganda has secured UGX681.5 billion (€157.76 million) from the African Development Bank Group to transform Arua airstrip into an international-standard airport, in a deal approved by the Bank’s Board of Directors.
The financing covers Phase 1 of the Uganda Airports Development Programme, under which the African Development Bank will extend a loan of UGX609.9 billion (€141.15 million), with an additional UGX64.1 billion (€14.84 million) coming from the African Development Fund, the Bank Group’s concessional lending arm. The Ugandan government will contribute UGX7.6 billion (€1.77 million) in kind, bringing the total programme cost to UGX681.5 billion.
Arua, located roughly 450 kilometres from Kampala, serves as a strategic gateway to Uganda’s West Nile region and neighbouring markets in South Sudan and the Democratic Republic of Congo. The region’s growth, however, has long been held back by limited domestic and international air-travel infrastructure.
Under the upgrade, the airstrip will be transformed with a 3.5-kilometre paved runway capable of handling large aircraft such as the Boeing 777, alongside new taxiways and aprons. A passenger terminal with capacity for 700,000 travellers annually and a cargo terminal designed to handle 25,000 tonnes a year are also planned. The project will further include a new control tower, access roads, car parking and modern safety systems.
Mike Salawou, the Bank Group’s Director for the Infrastructure and Urban Development Department, said the project goes beyond simply building an airport. He said it is about connecting people to opportunity, opening new markets for businesses, supporting tourism, and strengthening Uganda’s role as a regional trade and logistics hub.
The Uganda Civil Aviation Authority, operating under the Ministry of Works and Transport, will implement the project. The Authority’s Director General, Fred Bamwesigye, called the upgrade a significant development for Uganda’s aviation sector, one expected to strengthen infrastructure and regional connectivity while driving social and economic transformation in the West Nile region.
Bamwesigye noted that Arua airstrip is currently the second busiest in the country after Entebbe International Airport, with strong growth potential. He added that the upgraded airport will also serve as an alternative to Entebbe during emergencies, and thanked the African Development Bank for its continued partnership on the project.
West Nile, of which Arua is the regional capital, is endowed with mineral wealth and holds strong potential in agriculture, tourism, culture, trade, regional integration and logistics. As the farthest major city from Kampala, Arua stands to benefit significantly from the connectivity improvements. Faster and cheaper air access is expected to help farmers and businesses move perishable goods to regional and international markets, while also improving access to the region’s tourist attractions.
More than half a million people in Arua City and District are expected to benefit directly from the programme, while the wider West Nile region, home to over 3.3 million people, stands to gain from improved transport links and new investment opportunities.
The project is projected to create about 500 direct jobs during construction and more than 1,400 indirect jobs in tourism, agriculture and trade. It will also provide skills training for at least 100 young people, including women, in engineering, construction and equipment operation.
The initiative is aligned with the Bank’s Ten-Year Strategy 2024-2033 and the transport and infrastructure priorities of the Uganda Country Strategy Paper 2022-2026, both of which emphasise the development of well-maintained, sustainable infrastructure to improve market access and competitiveness in support of industrialisation.
Note: UGX figures are based on prevailing exchange rates at the time of writing and may vary slightly depending on the source used.
