Business 19 June 2026 Daily Monitor (Uganda)
AfDB Approves Shs650 Billion Loan to Transform Arua Airport into Uganda's Second International Gateway
The African Development Bank (AfDB) has approved a significant loan of €155.99 million (approximately Shs650 billion) to upgrade Arua Airport, positioning it as a key international hub and Uganda's second major airport after Entebbe. Source: https://www.monitor.co.ug/uganda/news/national/afdb-approves-shs650b-loan-to-upgrade-arua-airport-into-uganda-s-second-international-hub-5502694
A landmark deal has been struck to elevate Arua Airport, a facility long recognized for its potential as Uganda’s second busiest airport, into a fully-fledged international gateway. The African Development Bank (AfDB) Group’s Board of Directors has announced a substantial funding package of €155.99 million (approximately Shs650 billion) for the initial phase of the Uganda Airports Development Programme.
This crucial investment is set to usher in a new era for regional air transport, enhancing safety standards and unlocking significant economic and tourism prospects for the West Nile region. The project’s total cost for this phase is €157.76 million, with the AfDB providing the bulk through two loans: €141.15 million from the African Development Bank and €14.84 million from the African Development Fund. The Ugandan government will contribute in-kind worth €1.77 million.
The ambitious upgrade will see Arua Airport transformed into a climate-resilient, international-standard facility. Plans include a new 3.5-kilometer paved runway capable of accommodating large commercial aircraft, extended taxiways, and aircraft aprons. A modern passenger terminal designed to handle 700,000 travelers annually and a cargo terminal with a capacity of 25,000 tonnes per year are also part of the development. A new control tower, dedicated access roads, ample parking, and advanced aviation safety systems will complete the transformation.
“This project is about more than an airport,” stated Mike Salawou, AfDB’s Director for Infrastructure and Urban Development. “It is about connecting people to opportunity, opening new markets for businesses, supporting tourism, and strengthening Uganda’s role as a regional trade and logistics hub.”
Dr. Fred Bamwesigye, Director General of the Uganda Civil Aviation Authority (UCAA), hailed the development as a monumental milestone, noting Arua Airport’s immense growth potential and its future role as a vital alternative to Entebbe International Airport during emergencies.
The strategic location of Arua Airport, situated close to the borders of the Democratic Republic of Congo and South Sudan, positions it as a critical transit point for trade and logistics in the region. The upgrade is anticipated to stimulate economic growth in the West Nile region, fostering industries such as manufacturing, mineral processing, and light industries targeting the Congolese and South Sudanese markets. Furthermore, the construction phase is expected to create around 500 direct jobs and over 1,400 indirect jobs in sectors like tourism, agriculture, and trade, with specific training opportunities provided to local youth.
This initiative aligns with the AfDB’s strategic goals for sustainable infrastructure development aimed at boosting industrialization and competitiveness in regional markets.