The Government of Uganda has secured a major financial boost after successfully concluding a €270 million (approximately Shs1.1 trillion) 10-year loan facility with the African Export–Import Bank (Afrexim Bank) to finance a wide range of development and infrastructure projects under the 2024/25 national budget.
Announcing the loan agreement, Finance Minister Matia Kasaija emphasized its significance in bridging Uganda’s financing gaps in critical sectors.
“The facility is targeted towards financing of investments in infrastructure and human capital development in the budget, to support sustainable growth and socioeconomic transformation,” Kasaija said.
According to the Ministry of Finance, the funds will be channeled into government programs that directly drive value addition and long-term economic growth. These include agriculture modernization, support to the oil and gas sector, electricity generation and distribution, development of export processing zones and industrial parks, as well as expansion and maintenance of Uganda’s transport network, including roads, railways, and ports.
“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,” Kasaija noted.
He added, “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.”
Beyond supporting Uganda’s national development priorities, Afrexim Bank is also deepening its presence in East Africa by establishing its regional headquarters in Kampala. The East Africa Regional Office, currently under construction along Yusuf Lule Road, will host the Africa Trade Centre (ATC), a facility designed to serve as a hub for trade-related financing activities across the region.
Kasaija described this as a strong endorsement of Uganda’s role as a strategic trade gateway in the region.
“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.
The new facility will ease pressure on Uganda’s domestic resources at a time when the government is grappling with high infrastructure demands and limited fiscal space. The loan is expected to accelerate completion of key national projects, while also boosting industrialization and export competitiveness.
Officials further argue that by directing funds to high-return sectors such as energy, agriculture and manufacturing, Uganda stands to reduce its trade deficit and create more jobs for its young population.
Uganda has in recent years partnered with Afrexim Bank on several financing agreements aimed at stimulating economic transformation. The bank has emerged as one of the leading African institutions supporting large-scale infrastructure and trade financing on the continent, complementing other international lenders.
