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East Africa Frontline News

NextFrontier Africa is a media platform spotlighting Africa’s emerging opportunities in technology, tourism, aviation, agriculture, health, logistics, real estate, trade, education, and e-commerce.

August 04.2025

2 Minutes Read

Funding Crisis in Uganda: 27 Major Road Projects Suspended, Impacting Trade Routes

Complex highway interchange highlights Uganda road projects funding shortfall.

Funding Crisis Halts 27 Vital Road Projects in Uganda

In a dramatic development impacting transportation and logistics in Uganda, at least 27 major road and bridge projects have been suspended or slowed down due to a significant funding shortfall of Shs2.472 trillion for the financial year 2025-2026. This shortfall has resulted in only Shs682 billion being allocated of the required Shs3.153 trillion, leaving many crucial projects without the necessary financial backing.

Key Projects Affected by Funding Gaps

Among the suspended projects, crucial routes include the Masindi-Biiso and the Kabale-Kiziranfumbi oil roads, along with the Kampala-Mpigi Motorway and the Kampala-Jinja Highway. The Minister of Works and Transport, Gen. Edward Katumba Wamala, shared with Parliament that 18 projects funded by the government have faced complete suspension or slow progress due to payment delays, alongside nine externally financed projects hindered by the government’s inability to provide timely counterpart funding.

The Ripple Effect on Uganda's Economy and Logistics

The consequences are dire. With a growing backlog of Shs1.071 trillion in arrears from previous years and an additional Shs443 billion needed for land compensation, projects face substantial financial claims and deterioration risks. Notably, over 1,993 kilometers of Uganda's road network requires urgent maintenance, and 260 kilometers need complete rehabilitation. Failure to act not only risks fiscal losses up to Shs180 billion but also threatens service delivery for logistics and trade routes vital for business and economic growth.

Urgent Call for Financial Intervention

Minister Katumba's plea for immediate financial intervention aims to safeguard the integrity of the road network, essential for sustainability in trade and logistics sectors, particularly for businesses and airlines relying on efficient transportation routes. However, the Parliament was unable to address these urgent needs due to the absence of necessary financial ministers, prolonging uncertainty over Uganda's infrastructure future.

As these infrastructural projects stand at a critical juncture, stakeholders in the aviation and logistics sectors must advocate for solutions that ensure continued investment in Uganda’s transport network, preserving the essential lifeline for trade routes and economic connectivity.

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Funding Crisis in Uganda: 27 Major Road Projects Suspended, Impacting Trade Routes

Funding Crisis Halts 27 Vital Road Projects in Uganda

Key Projects Affected by Funding Gaps

The Ripple Effect on Uganda's Economy and Logistics

Urgent Call for Financial Intervention

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