Uganda has secured a €110.5 million ($126 million) financing agreement with the Ugandan subsidiary of Standard Chartered to accelerate road infrastructure development in the country’s mineral-rich northeast.

The funding will support the construction of a 115.8-kilometre highway in the Karamoja sub-region, a strategic corridor expected to improve logistics efficiency, lower transport costs and strengthen cross-border trade with neighboring Kenya.

Strategic bet on trade and mining

Uganda’s Ministry of Finance said the project is designed to support a wave of new investments flowing into Karamoja, a region increasingly viewed as one of East Africa’s emerging mining frontiers.

Among the flagship projects expected to benefit from the road are a $300 million cement manufacturing facility and a $72 million international airport currently under development.

Karamoja has attracted growing investor attention in recent years due to its substantial deposits of gold and other minerals, positioning the region as a future industrial and export hub for Uganda.

Improved transport infrastructure is expected to reduce travel times, lower freight expenses and enhance access to regional markets, creating new opportunities for businesses and local communities.

Roads remain Uganda’s economic lifeline

Road transport remains the backbone of Uganda’s economy, accounting for more than 90% of cargo and passenger movement across the country.

Uganda’s road network stretches beyond 150,000 kilometres, although only a relatively small share is paved. Approximately 87% of the system consists of District, Urban and Community Access Roads, which are critical for rural connectivity but remain vulnerable to seasonal weather disruptions.

The country’s major economic corridors, including routes connecting the capital city of Kampala to the Kenyan port city of Mombasa, continue to serve as essential arteries for regional trade despite increasing congestion and heavy freight traffic.

Standard Chartered deepens African infrastructure push

The deal further strengthens the role of Standard Chartered in financing strategic infrastructure projects across emerging markets.

Headquartered in London, Standard Chartered employs more than 83,000 people globally, has maintained a strong presence across Africa, Asia and the Middle East, supporting governments and corporations with trade finance, project funding and investment solutions.

For Uganda, the agreement represents more than a road project. It is a strategic investment aimed at unlocking mining potential, expanding regional commerce and supporting long-term economic growth in one of the country’s most underserved regions.