Uganda has signed a $800 million Country Engagement Framework (CEF) with the Islamic Development Bank (IsDB) to drive infrastructure growth, human capital development, and economic resilience from 2025 to 2027.
The agreement was signed by the Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, and IsDB Vice-President Dr. Rami Ahmed during the 50th Annual Meetings of the Islamic Development Bank Group in Algiers, Algeria.
"This framework supports our national goals of building a resilient economy and enhancing inclusive development," said Ggoobi after the signing.
The CEF outlines two main strategic pillars. The first focuses on climate-resilient infrastructure, prioritizing investment in transport, energy, and agriculture to fast-track Uganda’s structural transformation and strengthen food security and exports.
The second pillar emphasizes human capital development, targeting improvements in health outcomes and skills training in agriculture, ICT, hospitality, health, and the petroleum sector.
Six cross-cutting focus areas will support both pillars. These include:
- Infrastructure and skills development in tourism
- Advancing digitalization and innovation
- Climate change mitigation and adaptation
- Empowering women and youth
- Promoting Islamic finance
- Enhancing private sector competitiveness
Of the total $800 million package, the IsDB will provide $500 million, while the Islamic Corporation for the Development of the Private Sector (ICD) and the International Islamic Trade Finance Corporation (ITFC) will each contribute $150 million. Additionally, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has earmarked $400 million for investment and export insurance.
Key priority projects under the framework include:
- Construction of Regional Oncology Centers in Arua and Mbale
- Bukedea Water Works Project
- Second Drylands Integrated Development Project in Karamoja (DIDPK-II)
- Standard Gauge Railway Project
- Expansion of Katakwi General Hospital and establishment of Lwengo General Hospital
- Rural Electrification & Connectivity Project
- Upgrading of roads in Nakapiripirit, Amudat, Namalu, Nabilatuk, and Lokapel
- Water Supply and Sanitation Program III
The CEF aligns with Uganda’s national development goals and the 10-fold Growth Strategy, and complements this year’s IsDB meeting theme, “Diversifying Economies, Enriching Lives.”
During the meetings, the IsDB Board of Executive Directors also approved $1.32 billion in development financing for various member countries, focusing on sectors such as health, transport, vocational training, food security, and climate resilience.
This strategic partnership is expected to unlock long-term impact and economic transformation across Uganda by integrating inclusive development, innovation, and sustainability.
