Economy
Uganda Secures €270 Million Afreximbank Loan to Fund Development and Infrastructure Projects
The Government of Uganda has successfully concluded a €270 million, 10-year Term Loan Facility with the African Export-Import Bank (Afreximbank) to finance key development and infrastructure projects outlined in the FY 2024/25 national budget. The announcement was made in an official press statement by Hon. Matia Kasaija, Minister of Development Finance, Planning and Economic Development.
The financing is aimed at supporting investments in critical infrastructure and human capital development, providing a boost to Uganda’s efforts towards sustainable economic growth and socio-economic transformation. These funds are expected to contribute to a wide array of government projects, including: Agricultural value addition to enhance the productivity and competitiveness of Uganda’s key commodities. Oil and gas sector support, focusing on exploration, development, and sector infrastructure.
Energy sector development, covering power generation, transmission, and distribution projects to improve access and reliability. Special Export Processing Zones and industrial parks, aimed at promoting trade, industrialisation, and job creation. Transport infrastructure, including construction, rehabilitation, and maintenance of road, rail, and port facilities to enhance regional connectivity and trade efficiency.
Minister Kasaija emphasised that the loan reflects the capacity of African development financial institutions like Afreximbank to support national and continental development objectives. “This facility is a clear demonstration of the Bank’s relevance to Uganda and the African continent, and an expression of its confidence in delivering solutions tailored to the requirements of its member countries,” he said.
In a further demonstration of confidence in Uganda, Afreximbank has selected the country to host its East African Regional Office, currently under construction along Yusuf Lule Road in Kampala’s central business district. The office will also house the Afreximbank Africa Trade Centre (AATC), which will serve as a hub for the Bank’s trade finance and trade-related activities in Uganda and the broader East African region.
The establishment of this regional office signifies Afreximbank’s long-term commitment to Uganda, reflecting the country’s strategic position as a trade and investment gateway in East Africa. It is expected to facilitate increased trade financing, technical support, and capacity-building initiatives, benefiting both public and private sector stakeholders.
The €270 million loan will enable the Government of Uganda to accelerate the implementation of its development agenda, fostering infrastructure growth, job creation, and industrialisation. Projects supported by this financing are projected to:
- Enhance export capacity and trade competitiveness across key sectors.
- Improve energy reliability and accessibility, enabling industrial and commercial growth.
- Strengthen transport networks, reducing logistical bottlenecks and enhancing regional integration.
- Support human capital development through education, skills training, and capacity-building initiatives.
Minister Kasaija hailed the partnership with Afreximbank as a model of continental collaboration, emphasising that such support is crucial for achieving Uganda’s long-term economic transformation goals. “These investments signify the Bank’s strong confidence in the Government of Uganda and our shared vision of promoting trade and development in Africa,” he said.
With the Afreximbank loan, Uganda is set to reinforce its position as a key player in regional trade and infrastructure development, while leveraging financial partnerships that strengthen both national growth and continental integration. The funds are expected to catalyse significant improvements across multiple sectors, laying the foundation for sustainable economic growth and social development in line with Uganda’s Vision 2040 and broader African development objectives.
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