Citi today announced a EUR 126 million loan to the Government of the Republic of Uganda to fund the design and build of the Lusalira to Sembabule road project in Uganda. Citi acted as the sole coordinating Mandated Lead Arranger and a lender. The financing was supported by African Trade and Investment Development Insurance (ATIDI) and the Development Bank of Southern Africa (DBSA). Banks in the syndicate include Absa Bank (Mauritius) Limited.
The Lusalira to Sembabule road project is expected to link the national road network to the west of the country, playing a significant role in its socio-economic development, in addition to its integration into the East African region as part of Uganda’s broader infrastructure development efforts. The project is anticipated to boost Uganda and its neighbours’ ambition to create a well-connected regional economy by reducing trade barriers, lowering transport costs and encouraging the free movement of people and goods across borders.
“This transaction represents Citi’s strong commitment to sustainable economic development to enhance social progress in Uganda and the broader East African region,” Citi’s Chief Country Officer and Banking, Head Sarah Arapta remarked. “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,” added Arapta.
The EUR 126 million, 10-year loan facility will be used to upgrade the 97-kilometre road project, that passes through key agricultural areas in Uganda and will enable the transport of farmer produce to urban markets, stimulating rural economic growth. Further, access to essential social services such as healthcare and education will increase as the project rolls out in areas with previously impassable roads.
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ATIDI’s CEO, Manuel Moses commented, “We are proud to partner with Citi 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 critical component of the country’s macroeconomic plans and will also improve access for local communities and businesses. At ATIDI, we remain committed to enabling sustainable development and economic growth through strategic, high-impact investments. This project is a testament to our belief in the transformative power of infrastructure development.”
Sub-Saharan Africa remains an important market for Citi and this deal reinforces it as the preeminent bridge for Africa’s sovereigns wishing to tap global capital markets.
