The African Development Bank Group (AfDB) has approved a $144.89m loan for a road improvement project in Uganda to increase mobility in the country.

The road project is financed by $110.49m from the African Development Fund (ADF) and a $34.40m contribution from the Ugandan Government.

Set to provide quality road transport services to the western regions of the country, the project involves the construction of a 135km road, connecting Kigumba and Kabwoya via Masindi and Hoima.

It includes civil engineering works, the study and strengthening of the road sub-sector, and the compensation and relocation of people affected by the project in accordance with the relocation plans.

"The road project is financed by $110.49m from the African Development Fund (ADF) and a $34.40m contribution from the Ugandan Government."

The scheme is expected to lower transportation costs, improve access to social and economic infrastructure, and raise mobility, thereby contributing to the improvement of the standards of living of the citizens.

More than 870,000 people are expected to benefit from this project, which aims to create nearly 1,200 jobs, of which 80% will be reserved for local communities.

The bank’s effort is in line with the country’s plans to improve road transportation with the engagement of other development partners in the sub-region.

AfDB Group recently approved grants and loans amounting to $73m to finance irrigation and road rehabilitation projects in Malawi.

AfDB Group, established in 1964 and headquartered in Tunisia, is a multilateral development finance institution formed to contribute to the economic development and social progress of African countries.