The Government of Uganda has successfully secured a EUR 270 million loan facility from the African Export-Import Bank (Afreximbank) to finance priority development and infrastructure projects under the 2024/25 national budget.
The 10-year term loan facility is aimed at accelerating investments in infrastructure and human capital development, in line with the government’s broader agenda to foster sustainable economic growth and drive socio-economic transformation.
Announcing the financing, Hon. Matia Kasaija, the Minister of Finance, Planning and Economic Development, described the facility as a milestone in Uganda’s development journey.
“This facility will accelerate our efforts to implement transformative projects that are critical to Uganda’s growth,” Kasaija said. “It demonstrates our commitment to investing in infrastructure and human capital development, which remain central pillars of our socio-economic transformation.”
Financing Key Strategic Sectors
The funds will support several government projects and programs spanning multiple sectors. These include value addition to agriculture, support for the oil and gas sector, energy generation, transmission and distribution, and the establishment of special export processing zones and industrial parks.
Significant allocations will also go toward the construction and maintenance of roads, railways, and port infrastructure, reinforcing the government’s strategy to enhance connectivity and open up new economic opportunities.
Kasaija emphasized that the loan will directly benefit Ugandans through improved infrastructure and increased productivity across critical sectors.
“Our focus is on creating a solid foundation for economic growth. Investments in roads, energy, and industrialization will stimulate trade, create jobs, and enhance the competitiveness of Uganda’s economy,” he noted.
Afreximbank’s Confidence in Uganda
The deal underscores Afreximbank’s strong confidence in Uganda’s economic prospects and its development agenda. As one of Africa’s premier development financial institutions, the Bank’s support reflects its broader strategy of backing projects that align with African countries’ growth objectives.
“This financing demonstrates the capacity of African institutions like Afreximbank to deliver solutions tailored to the needs of their member countries,” Kasaija remarked. “It is a clear signal of the Bank’s relevance to Uganda and the continent at large.”
In addition to extending the loan facility, Afreximbank has chosen Uganda to host its East African regional office, further strengthening its partnership with the country.
Establishing a Regional Trade Hub
Currently under construction in Kampala’s central business district along Yusuf Lule Road, the regional office will house the Afreximbank Africa Trade Centre (AATC). The state-of-the-art facility is expected to serve as the Bank’s operational hub for the region, coordinating trade-related financing and supporting cross-border business activities.
It is noted that the establishment of the AATC will place Uganda at the heart of regional trade facilitation, positioning Kampala as a gateway for investment and financial services in East Africa.
According to Kasaija, the decision by Afreximbank to set up its regional office in Kampala represents a vote of confidence in Uganda’s economic stability and growth potential.
“Hosting Afreximbank’s East African office reinforces our shared vision of promoting trade and development in Africa this partnership underscores Uganda’s growing role as a regional investment hub,” Kasaija said.
Driving Sustainable Transformation
The government has reaffirmed its commitment to ensuring that the funds are strategically invested in projects that deliver long-term benefits for Ugandans. With infrastructure and industrialization at the forefront of the 2024/25 budget priorities, officials believe this financing will catalyze inclusive development.
Kasaija stressed that the goal is not just economic growth but transformation. “By prioritizing investments in key sectors, we are laying the foundation for a stronger, more resilient, and more competitive economy.”
The government views this partnership with Afreximbank as a strategic opportunity to align Uganda’s development objectives with Africa’s broader economic agenda. By focusing on infrastructure, energy, industrialization, and trade facilitation, the initiative is expected to enhance Uganda’s role in regional and continental markets.
Looking Ahead
With the Afreximbank loan secured, Uganda is poised to implement critical projects aimed at unlocking new opportunities for trade, investment, and industrial growth. The funding, coupled with the upcoming Africa Trade Centre, is expected to strengthen Uganda’s position as a driver of economic integration within East Africa.
“The Afreximbank facility is not just a loan it is an investment in Uganda’s future; it signifies our resolve to accelerate transformation and secure a prosperous future for our people,” Kasaija concluded.