Uganda, Germany seek stronger economic ties to drive Shs1,875t growth target

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Uganda and Germany have renewed their commitment to strengthening bilateral economic cooperation, with increased investment, technology transfer, industrialisation and skills development identified as key priorities in accelerating Uganda’s economic transformation.

The renewed partnership comes as the government seeks to align development cooperation with the Fourth National Development Plan (NDP IV) and its Tenfold Growth Strategy, which aims to expand Uganda’s economy to $500 billion by 2040.

Opening the Uganda-Germany Government-to-Government Negotiations, Permanent Secretary and Secretary to the Treasury (PSST) Ramathan Ggoobi called on Germany to increase its investment in Uganda, particularly in sectors that can stimulate production, create jobs and improve household incomes.

Ggoobi said the two countries needed to move beyond traditional development assistance and establish stronger economic partnerships capable of delivering measurable results.

“Uganda seeks deeper economic cooperation that supports industrialisation, technology transfer, skills development, increased investment and enterprise growth, particularly in the priority sectors identified under the ATMS framework,” Ggoobi said.

The ATMS framework focuses on Agro-Industrialisation, Tourism Development, Mineral Development, and Science, Technology and Innovation, alongside supporting sectors that enable economic growth.

Ggoobi emphasised that Uganda wanted its cooperation with Germany to translate into increased domestic production, value addition, export earnings, employment opportunities and improved livelihoods.

He welcomed Germany’s proposed interventions in water security, particularly investment in River Enyau, expanded electricity access in the West Nile sub-region, climate-resilient agribusiness and local economic development.

He also highlighted the SCALE programme in Northern Uganda as an important intervention in strengthening local economies and supporting communities to participate in productive economic activities.

On refugee management, Ggoobi called for more predictable international financing and equitable sharing of responsibilities, saying Uganda continued to shoulder substantial humanitarian responsibilities as a host country.

Uganda was hosting approximately 2.05 million refugees and asylum-seekers as of September 2026, according to figures presented during the negotiations.

He said sustained international support was necessary to enable Uganda to maintain its refugee-hosting policy while addressing pressure on public services, infrastructure and resources in host communities.

The Head of the German delegation, Joachim Schmitt, who also heads the Central and East Africa Division at Germany’s Federal Ministry for Economic Cooperation and Development, reaffirmed Berlin’s commitment to strengthening cooperation with Kampala.

Schmitt said Germany wanted the partnership to be guided by mutual accountability, measurable development outcomes and greater participation of the private sector.

He commended Uganda for its refugee-hosting policy and contribution to regional stability but acknowledged the increasing humanitarian pressures facing the country.

Germany also reaffirmed its continued engagement in climate resilience, regional health security and sustainable development, including the construction of six valley tanks in Karamoja to support water access and resilience among communities.

Schmitt said sustainable development cooperation required strong institutions, transparency, accountability, respect for human rights and a predictable environment for investors.

“Good governance, transparency, accountability, respect for human rights and a predictable investment environment remain important foundations for sustainable cooperation,” Schmitt said.

He further called for stronger trade, technology and private-sector partnerships, arguing that development financing alone would not be sufficient to deliver the scale of economic transformation Uganda is targeting.

Both delegations agreed on the need to mobilise private capital alongside development financing to support productive investments, expand business opportunities and accelerate economic growth.

The negotiations come against the background of longstanding economic and development ties between the two countries, with diplomatic relations established in 1962, shortly after Uganda attained independence. Their formal development cooperation dates back to 1964.

Germany’s support to Uganda has traditionally focused on agriculture and rural development, renewable energy, energy efficiency, good governance, refugee-hosting communities and job creation.

The two countries also have established trade relations. Bilateral trade was valued at approximately US$335 million in 2024, with Uganda exporting coffee, tea and fish to Germany while importing mainly machinery and chemical products.

Earlier, Uganda’s Finance Minister Henry Musasizi disclosed that Germany’s development cooperation portfolio with Uganda stood at €470.5 million across 30 projects, with €241.1 million already disbursed and €229.4 million remaining to be disbursed.

The latest negotiations are expected to help shape the next phase of bilateral cooperation, with discussions focusing on existing commitments, project implementation and how available resources can contribute more directly to Uganda’s economic priorities.

The two delegations emphasised the importance of regional cooperation, mutual respect and constructive dialogue in addressing differences while pursuing shared development objectives.

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