The African Development Bank Group has approved financing of €155.99 million to support the modernization of Uganda’s Arua Airport under the first phase of the Uganda Airports Development Programme. The project aims to transform the airport into an international-standard aviation facility, strengthening regional connectivity and creating new opportunities for trade, tourism, and economic development.
Located approximately 450 kilometers from Kampala, Arua serves as a strategic gateway to Uganda’s West Nile region and neighboring countries, including South Sudan and the Democratic Republic of the Congo. Despite its strategic importance, limited aviation infrastructure has constrained the region’s economic growth and access to domestic and international markets.
The project will deliver significant infrastructure improvements, including the construction of a 3.5-kilometer paved runway capable of accommodating large aircraft, new taxiways and aprons, a modern passenger terminal with an annual capacity of 700,000 travelers, and a cargo terminal capable of handling 25,000 tonnes of freight each year. Additional facilities will include a new control tower, access roads, parking areas, and upgraded aviation safety systems.
The total project cost is estimated at €157.76 million. The African Development Bank will provide the majority of the financing through a €141.15 million loan, while the African Development Fund will contribute an additional €14.84 million. The Government of Uganda will provide an in-kind contribution of €1.77 million.
The airport upgrade is expected to strengthen Uganda’s position as a regional trade and logistics hub by improving access to markets and reducing transportation costs. Farmers and businesses in the West Nile region will benefit from faster and more efficient movement of perishable goods to regional and international destinations. Improved air connectivity is also expected to increase tourism by enhancing access to the region’s cultural, natural, and historical attractions.
The development will directly benefit more than 500,000 residents of Arua City and District, while the broader West Nile region, home to over 3.3 million people, will gain from increased investment, improved transport services, and stronger economic integration. The airport will also serve as an alternative to Uganda’s main international gateway, Entebbe International Airport, during emergencies.
Beyond infrastructure improvements, the programme is expected to generate substantial employment opportunities. Around 500 direct jobs will be created during the construction phase, while more than 1,400 indirect jobs are anticipated across tourism, agriculture, trade, and related sectors. The project will also provide technical skills training for at least 100 young people, including women, in engineering, construction, and equipment operations.
The initiative aligns with Uganda’s infrastructure development priorities and the African Development Bank’s long-term strategy of promoting sustainable infrastructure, improving market access, enhancing competitiveness, and supporting inclusive economic growth across the continent.
