Uganda has signed two loan agreements worth USD 150 million with the Arab Bank for Economic Development in Africa (BADEA) to strengthen private sector investment across key sectors of the economy.
The signing took place on Thursday during the 41st Board of Governors meeting of the Trade and Development Bank Group (TDB Group) in Kigali, Rwanda. The agreements were signed by Uganda’s Minister of Finance, Planning and Economic Development, Matia Kasaija, and BADEA President, Abdullah ALMUSABEEH.
Two-thirds of the funding—USD 100 million—will be channeled through Uganda Development Bank Limited (UDB) to support private sector players involved in agro-processing, infrastructure, manufacturing, health, and education.
ALMUSABEEH described the deal as a model for how countries can leverage regional financing mechanisms to stimulate economic transformation.
“Today’s loan agreement with the Government of Uganda is an outstanding example of how governments can leverage from BADEA’s available financial instruments from both the public and private sectors as well as from trade finance windows to empower the private sector and advance countries’ social and economic development agenda,” he said.
The remaining USD 50 million will further enhance national development priorities by enabling access to long-term, affordable credit for enterprises in strategic sectors.
The financing is part of Uganda’s broader strategy to unlock inclusive economic growth through industrialization and increased local value addition.