After building a road between two cities, the road appeared the caravans started their trek... however, the option to build a road to the first city remains on in the second city.

Alas, said city (Etiyavi) is hidden under the build-a-road panel. You can just make out a loop of the road reaching Acira.

Unfortunately, I could not test this further as the game crashed when I alt-tabbed out to save the screenshot (I know, I know, I should have used the in-game screenshot button or something). I will try to duplicate it and see if Acira also doesn't recognize the road.