Uganda has secured a €270 million loan facility from the African Export–Import Bank (Afrexim Bank) to support major development priorities in the Financial Year 2024/25 budget.
The loan, equivalent to about UGX 1.1 trillion, will run for 10 years and is expected to bolster infrastructure, industrial growth, and energy expansion.
Finance Minister Matia Kasaija confirmed the financing on Wednesday, August 20, saying it would be directed toward projects with direct impact on economic transformation.
“The facility is targeted towards financing of investments in infrastructure and human capital development in the budget, to support sustainable growth and socioeconomic transformation. These funds will support various government projects/programs, including value addition to agriculture, support to the oil and gas sector, energy generation, transmission, & distribution, special export processing zones and industrial parks, and construction and maintenance of existing road, rail, and port infrastructure,” Minister Kasaija explained.
He stressed that the agreement reflects the strength of African-led financial institutions in addressing continental development challenges.
“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. 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,” he added.
Beyond the loan, Uganda is also set to host Afrexim Bank’s East African regional office.
Minister Kasaija revealed that the regional office is already under construction in Kampala’s central business district along Yusuf Lule Road.
The facility will include the Afrexim Bank Africa Trade Centre (AATC), which will house the bank’s operations in the region and coordinate trade financing activities within Uganda.
Kasaija described the development as a significant endorsement of Uganda’s stability and role in Africa’s trade agenda.
“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 government expects that with Afrexim Bank’s financing and regional presence, Uganda will be better positioned to accelerate industrialization, boost agricultural exports, and strengthen its role as a trade hub in East Africa.
