Uganda has secured a €270 million loan from the African Export–Import Bank (Afrexim Bank) to finance key infrastructure and development projects under the FY 2024/25 budget.
Finance Minister Matia Kasaija confirmed this that the 10-year facility will fund critical programs including value addition in agriculture, support to the oil and gas sector, energy generation and transmission, export processing zones, industrial parks, and the construction and maintenance of road, rail, and port infrastructure.
“The facility is targeted towards financing of investments in infrastructure and human capital development in the budget, to support sustainable growth and socioeconomic transformation. These funds will support various government projects/programs, including value addition to agriculture, support to the oil and gas sector, energy generation, transmission, & distribution, special export processing zones and industrial parks, and construction and maintenance of existing road, rail, and port infrastructure”he said.
“This financing is an indication of the capacity of an African development financial institution like Afrexim Bank, among others, to support African Strategies and development objectives. This is a clear demonstration of the Bank’s relevance to Uganda and the African continent, as well as an expression of its confidence in delivering solutions tailored to the requirements of its member countries.” Kasaijja stated.
In addition to supporting Uganda’s development objectives,Kasaija said the Afrexim Bank has also chosen Uganda to host its East African regional office, which is currently under construction in Kampala’s central business area along Yusuf Lule Road.
The East African Regional Office will host the Afrexim Bank Africa Trade Centre (AATC) to house the Bank’s business in the region and other trade and trade-related financing activities in Uganda.
Kasaija described the move as a strong signal of the bank’s trust in Uganda’s leadership and its alignment with Africa’s broader trade and development agenda. “These investments signify the Afrexim Bank’s strong confidence in the Government of Uganda and our shared vision of promoting trade and development in Africa,” he said.
Uganda’s road infrastructure is has seen significant expansion and improvement in its road network, particularly with the addition of paved roads,
It also faces funding shortages that are impacting ongoing projects and maintenance efforts. A large portion of the network remains unpaved, and there are concerns about the quality of existing roads, including drainage issues and potholes