The Government of Uganda, in partnership with the African Export-Import Bank (Afreximbank), has successfully secured a €270 million 10-year term loan facility to finance critical development and infrastructure projects outlined in the FY 2024/25 national budget. The loan agreement, signed recently, underscores the growing collaboration between Uganda and African development financial institutions in driving sustainable economic growth.
According to Matia Kasaija, Minister of Finance, Planning and Economic Development, the facility is earmarked for investments in infrastructure and human capital development, aimed at supporting Uganda’s social-economic transformation and long-term growth objectives. The funds will directly finance government programs in several key sectors:
- Agriculture: Promoting value addition and enhancing the competitiveness of Uganda’s agricultural exports.
- Oil and Gas Sector: Supporting upstream and downstream development initiatives.
- Energy: Expanding generation, transmission, and distribution networks to ensure reliable power supply.
- Industrial Development: Financing special export processing zones, industrial parks, and manufacturing hubs to stimulate job creation.
- Transport Infrastructure: Construction and maintenance of road, rail, and port facilities, critical to improving trade and regional connectivity.
The financing demonstrates the capability of Afreximbank, a pan-African development financial institution, to support member countries in achieving their development strategies. By providing tailored financial solutions, Afreximbank reinforces its relevance to Uganda and the African continent, offering both financial backing and technical expertise to ensure project success.
Minister Kasaija noted that the loan is not only a financial endorsement but also a symbol of Afreximbank’s confidence in Uganda’s development trajectory and governance structures.
“This facility is an affirmation of the Bank’s confidence in delivering solutions aligned with the specific requirements of its member countries,” he said.
In addition to the financing, Afreximbank has chosen Uganda to host its East African regional office, currently under construction in Kampala’s central business district along Yusuf Lule Road. This office will house the Afreximbank Africa Trade Centre (AATC) and serve as a hub for trade and trade-related financing activities in the region. The establishment of the regional office is expected to boost trade facilitation, provide technical assistance, and strengthen financial partnerships across East Africa.
The €270 million loan is expected to accelerate the implementation of Uganda’s development budget, fostering sustainable growth, job creation, and improved socio-economic outcomes. By targeting sectors such as energy, agriculture, industry, and transport, the funding aligns with Uganda’s broader Vision 2040 goals, which emphasize infrastructure-led development, economic diversification, and enhanced competitiveness in regional and global markets.
The partnership between Uganda and Afreximbank highlights the importance of intra-African financial collaboration, demonstrating how African institutions can catalyze development by providing accessible financing for projects that directly impact communities and drive economic transformation.
Minister Kasaija affirmed that the facility and the regional office signify a shared vision between Uganda and Afreximbank of promoting trade, industrialization, and sustainable development across the continent.
“These investments reflect strong confidence in the Government of Uganda and our mutual commitment to fostering economic growth and prosperity in Africa,” he said.
With the loan now secured and the regional office under construction, Uganda is set to accelerate its infrastructure agenda, expand regional trade opportunities, and strengthen its position as a key economic hub in East Africa.
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