Kampala, 8 November 2024 – The African Trade & Investment Development Insurance (ATIDI) has successfully provided a political risk insurance cover of a €126 million term loan extended to the Government of the Republic of Uganda, represented by the Ministry of Finance, Planning and Economic Development. This financing will support the design and development of the Lusalira – Nkonge – Sembabule Road (97km) upgrading road project from gravel to paved standard. This project is an integral part of Uganda’s national infrastructure enhancement initiative, aiming to improve connectivity, promote trade, and ensure better access to key economic areas.
The loan, which is structured as a multi-party syndicated facility, was coordinated by Citi, acting as the sole Mandated Lead Arranger and Lender. The syndicate also includes Absa Bank (Mauritius) Limited, with additional backing from the Development Bank of Southern Africa (DBSA), a prominent development financial institution in the region.
A well developed and efficient transport infrastructure is vital for economic and social development of a country. Once completed, this road is expected to significantly reduce transportation costs, provide direct employment opportunities during the construction phase, further supporting government efforts to eradicate poverty and spur economic development while enhancing regional trade links and stimulate economic growth in the region. Additionally, the route’s proximity to a significant cultural Bigo Byamugenyi archaeological site enhances tourism potential, promoting access to economic opportunities and fostering local growth.
Quote from Manuel Moses, ATIDI CEO
“We are proud to partner with Citi, Absa and DBSA to support the Government of Uganda with this critical infrastructure project. The Lusalira to Sembabule road is more than just a road—it is a lifeline for local communities, farmers and businesses in Uganda and the broader East African region. At ATIDI, we remain committed to enabling sustainable development and economic growth through strategic, high-impact investments. This financing is a testament to our belief in the transformative power of infrastructure development.”
Quote from Sarah Arapta, Citi’s Chief Executive and Banking Head
“This transaction represents Citi’s strong commitment to sustainable economic development with the goal of enhancing social progress in Uganda and the broader East African region. History has taught us that economic and social development goes hand in hand with infrastructure development and we believe that financing this transformative project represents an opportunity for us to be part of facilitating Uganda’s growth story.
