Uganda is moving ahead with plans to borrow €270 million (about $290 million) from the African Export-Import Bank (Afreximbank) to fund critical agriculture and transport projects, Finance Minister Matia Kasaija confirmed during a public briefing. The loan will support value addition in farming, upgrades in transport infrastructure, and the development of export processing zones, as reported by Reuters.
The funds are expected to bolster Uganda’s infrastructure drive, particularly road, rail, and port projects outlined in the 2024/25 budget. They will also be directed toward the oil and gas sector to fast-track upstream and downstream investments, as highlighted by Watchdog Uganda.
In parallel, Uganda has secured an $800 million financing agreement with the Islamic Development Bank (IsDB). The three-year package will support transport links, including a project to connect Uganda to Kenya’s Standard Gauge Railway, alongside health and energy programs, the Finance Ministry revealed in a statement published by Reuters.
Analysts suggest the new financing could ease fiscal pressures while reinforcing Uganda’s economic transformation agenda. However, they caution that debt sustainability will remain under close scrutiny as the country expands its borrowing profile.
