In abid to foster foreign relations Minister of Finance Matia Kasaija together with the Korean Minister of Foreign Affairs, Cho Tae-yul, have signed the aframework Agreement for a US$500 million (Shs1.89 trillion) loan from Korea EXIM Bank.
The ceremony took place at the Korean Ministry of Foreign Affairs in Seoul on the sidelines of the First Korea-Africa Summit.
The newly signed Framework Agreement falls under the existing Economic Development Cooperation Fund (EDCF) Agreement between the two governments, initially established on April 13, 2012.
The loan agreement will enable Uganda to access up to $500 million in financing from the EDCF over the next four years, from 2024 to 2028.
“These funds will be directed towards various development projects aimed at enhancing Uganda’s infrastructure and socio-economic landscape.” Kasaija noted
The First Korea-Africa Summit provided a platform for meaningful dialogue and collaboration between Korea and African nations, addressing key areas of mutual interest such as trade, investment, and development cooperation.
This is in accordance with the existing agreement between the Government of the Republic of Korea and the Government of the Republic of Uganda concerning loans from the Economic Development Cooperation Fund, signed on April 13, 2012.
Under the terms of the Framework Agreement, the Korean Government shall enable the Ugandan Government to obtain loans from the Economic Development Cooperation Fund (EDCF) up to a maximum commitment amount in Korean won not exceeding the equivalent of five hundred million US dollars (US$ 500,000,000) for the years 2024 through 2028 to finance EDCF loan projects in the Republic of Uganda.
The Ministry of Finance recently revealed plans to hit the credit market and procure 29 more loans valued at over Shs18.7Trillion in the near future to fund various public projects amidst reports that Uganda’s public debt has grown to US$24.60 Billion (Shs93.38trillion) as at end December 2023.
Uganda and South Korea have agreed to bolster their bilateral relations in 10 key areas after both countries signed memoranda of understanding today at State House, Entebbe.
The agreements were signed by different Ministers of the two countries at a ceremony where President Yoweri Museveni hosted his visiting South Korean counterpart, Park Geun-Hye. The South Korean leader arrived in Uganda yesterday on a 3-day State visit at the invitation of President Museveni
The ten areas of cooperation are: policy consultation (foreign affairs), health care and medical science, information and communication technology, energy (industry and plant construction), science and technology, community credit cooperatives, social welfare, defence, agriculture and rural development.
Prior to signing the memoranda, President Museveni officially welcomed Ms. Park Guen-Hye on her first State visit to Uganda. Upon her arrival at State House Entebbe at 10.00 a.m. President Park Guen-Hye received a bouquet of flowers from five year-old Meghan Makanga before shaking hands with President Museveni. She then inspected a guard of honour mounted by the Officers and men of the Uganda’s People Defense Forces (UPDF). She also received a 21-gun salute.
In a meeting with his guest President Museveni, the two leaders outlined four major areas that the two countries can partner on. These, he said, are investment, trade access, tourism and human resource development
With Uganda’s abundant natural resources, President Museveni noted that Korea could establish processing industries in Uganda which would not only create jobs but also add value to exports hence fetch higher returns.
“One of the problems of African countries is not having enough entrepreneurs. We have some entrepreneurs but the spectrum is very big and they are few. They are now busy in trade, real estate but few in manufacturing. That is why we need help from South Korea,” said Mr. Museveni.
