Uganda plans to borrow €500 million ($568 million) from three lenders, including the African Export-Import Bank (Afreximbank), to fund infrastructure development, according to Finance Minister Matia Kasaija
Parliament approved the loan plan despite objections from opposition members that raised concerns about rising debt levels in the country.
From the total amount, 170 million of Cairo’s 270 million will come from after bank based in Cairo, while the remaining 230 million will come from Ecobank Uganda and the South African Development Bank. However, if funds are paid, they are not specified.
The state recently signed a more than US$800 million contract with the Islamic Development Bank to fund projects for rail, health, transportation and energy infrastructure projects. Uganda’s public debt rose to $29.1 billion last year, to 18% last year, according to the Ministry of Finance. This is primarily due to an increase in domestic loans. Due to the installation, the loan rating was given in 2024.
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Nevertheless, the government argues that loans are needed to support economic growth through infrastructure expansion.
A few days ago, the East African country joined South Sudan and the Central African Republic (CAR) to launch a pioneering 1,800-kilometre regional road project, increasing trade, connectivity and economic integration in East and Central Africa.
Bad road networks and frequent border delays are currently affecting trade in the region, increasing costs and slowing down business activities. The new corridor is expected to reduce delivery times, reduce logistics costs and improve trade efficiencies for both small retailers and large businesses.
