Uganda’s Parliament is reviewing loan requests worth about US\$399 million, equivalent to Shs1.4 trillion, that are intended to support major projects in health, agriculture, and infrastructure.
The requests were formally presented on Wednesday, 03 September 2025, by the Minister of State for Finance, Planning and Economic Development (General Duties), Henry Musasizi, during a plenary session chaired by Speaker Anita Among.
According to Musasizi, the package of loans seeks to address urgent national priorities.
A total of US\$47.5 million has been earmarked for constructing and equipping oncology centres in Mbale and Arua, facilities that are expected to improve cancer diagnosis and treatment in Eastern and Northern Uganda.
A further US\$99.56 million from the International Fund for Agricultural Development (IFAD) is intended to finance the Resilient Livestock Value Chain Project, which will strengthen livestock production, processing, and market access across the country.
Another US\$252 million will be borrowed from the African Development Bank (AfDB) and the African Development Fund (ADF) to finance the construction of the Busega–Mpigi Expressway, a critical transport link that will ease traffic congestion and improve trade routes.
While laying the health sector loan proposals before the House, Musasizi explained the specific sources of financing. He said: “I beg to lay the proposal to borrow up to euros 9.4 million from Unicredit Bank Austria for the construction and equipping of Mbale Oncology Centre and US\$36.5 million from Islamic Development Bank for the construction of Arua Oncology Centre and radiotherapy equipment for the Mbale Oncology Centre.”
If approved, these centres are expected to reduce the long distances patients currently travel to Kampala for cancer treatment. They will also help address Uganda’s rising cancer burden by increasing access to modern diagnostic and radiotherapy equipment.
Turning to agriculture, the proposed US\$99.56 million IFAD loan is designed to improve resilience in Uganda’s livestock value chain.
Officials say this will cover areas such as disease control, animal breeding, feed improvement, and support to smallholder farmers.
The project will also enhance dairy and meat production, enabling Ugandan farmers to compete better in regional and international markets.
The largest share of the loan package, US\$252 million, has been allocated to the completion of the Busega–Mpigi Expressway.
This road, once complete, will link Kampala to western Uganda more efficiently, cut travel times, reduce transport costs, and support trade and tourism.
The expressway is also expected to reduce traffic accidents on the current narrow and congested road.
Presiding over the session, Speaker Anita Among reminded Members of Parliament about the constitutional requirements that govern the approval of loans, cautioning against delays in processing and stressed that one of the loan requests carried a time-sensitive deadline.
“The deadline of signing this loan is on 12 September 2025… failure to have it processed before that would call for a cancellation.
This loan has an aspect of a grant,” she said, in reference to the IFAD loan. She directed the Committee on National Economy to examine the requests and report back to Parliament by Tuesday, 07 September 2025.
Her guidance underscored the importance of timely decisions, especially where loans contain grant elements that could ease Uganda’s debt burden.
All three loan requests have now been referred to the Committee on National Economy, which will scrutinize the technical details, assess the repayment terms, and weigh the economic benefits before Parliament makes a final decision.
If approved, the Shs1.4 trillion financing is expected to boost Uganda’s capacity to deliver essential health services, modernize agriculture, and expand transport infrastructure.
Analysts say this could have a ripple effect on job creation, poverty reduction, and long-term economic growth.
