The African Development Bank (AfDB) will spend $105 million to support infrastructure development in East Africa. The finance institution seeks to upgrade a 73-km road transport network linking Kenya and Uganda to facilitate their trading activities and economic growth. The bank has heavily invested in many African countries propelled by its mission to alleviate poverty level and improve the living standards of Africans.
Rural road, Kapchorwa – Suam is an important transport network, especially for agricultural produce. Its devastated condition has hampered the transportation of goods and people, compelling AfDB to financially support its revamp. Its poor condition has influenced the quality of commodities transported, affecting the on-time delivery of the goods. Such has been the barrier to rural development, with many businesses preferring regions with better infrastructure to cut on the operation cost. This has led to congestion in the urban areas, and limited growth in the rural grounds.
Kenya and Uganda have enjoyed healthy bilateral ties over the years catapulted by improved trading relations. Trade has been a paramount ingredient in supporting economic growth and opening investment opportunities as well as the creation of employment opportunities. East African countries highlighted the need to develop infrastructure in their new financial year review to facilitate the growth of imports and exports. Foreign investors are understood to be keen to invest in business environments with better infrastructure to affect their businesses.