(Ecofin Agency) - • Uganda, South Sudan, and the Central African Republic launched a 1,100 km road project.
• The corridor is intended to reduce trade costs, connect landlocked markets, and ease isolation.
• Logistics inefficiencies currently inflate transport costs to up to 70% of goods’ value in the region.

Uganda, South Sudan, and the Central African Republic (CAR) have officially launched a 1,100-kilometer road corridor project designed to strengthen regional integration and cross-border trade. The announcement, made last week, reflects growing efforts to bridge logistical gaps in a region that remains poorly interconnected and geographically isolated.

Though the project's total cost has not yet been disclosed, the three countries emphasized that the corridor will address key structural constraints, including the lack of maritime access, high logistics costs, and limited infrastructure. By improving road links, the initiative aims to serve as a strategic trade route between East and Central Africa, potentially offering a viable alternative to corridors running through Mombasa, Kenya or Dar es Salaam, Tanzania.

The future corridor is expected to reduce transportation distances, expand market access, and support the movement of goods such as agricultural products and minerals from northern Uganda and southern CAR. Uganda, which already has road and rail connections with Kenya, is poised to act as a regional hub within the project.

The road initiative also aligns with the broader objectives of the African Continental Free Trade Area (AfCFTA), which depends heavily on improved physical connectivity to facilitate intra-African trade. Officials hope the corridor will enable more fluid customs procedures, increase competitiveness, and attract logistics providers to areas previously neglected by major infrastructure projects.

Currently, trade in this part of the continent is severely constrained by logistics inefficiencies. According to the African Development Bank, in regions such as CAR, Chad, northern DRC, and parts of South Sudan, transport and handling costs can account for up to 70% of the value of goods. The new corridor could help reduce these costs by enhancing road quality, streamlining cross-border procedures, and decreasing reliance on longer, costlier routes.

However, the project's success will depend on financing commitments from development partners and international donors. Persistent security challenges in parts of South Sudan and the Central African Republic also pose risks for investment and project delivery.