Gov’t, Afreximbank sign €270mln loan for infrastructure development

KAMPALA, August 22, 2025 – In a bid to improve road infrastructure and other key sectors across the country, the Government of Uganda has secured a €270 million loan [approximately Shs 1.1 trillion] from the African Export-Import Bank [ Afreximbank ].

According to Finance Minister Matia Kasaija, the 10-year loan facility will support value addition in agriculture, the oil and gas sector, energy generation, transmission & distribution, the development of industrial parks, and the construction and maintenance of roads, railways, and ports.

“The facility is targeted towards financing of investments in infrastructure and human capital development in the 2024/2025 budget, to support sustainable growth and socio-economic transformation,” Kasaija said in a recent press statement.

He further explained that the funds would support various government projects and programmes, including agricultural value addition, energy distribution, support to the oil and gas sector, and the establishment of special export processing zones and industrial parks.

The facility is also expected to ease the burden posed by dilapidated rural roads, which require substantial investment in both maintenance and new construction, as well as contribute to railway rehabilitation and port upgrades.

“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 an expression of its confidence in delivering solutions tailored to the requirements of its member countries,” Kasaija noted.

The Minister also announced that Afreximbank has selected Uganda to host its East African Regional Office, currently under construction in Kampala. This office will house the Afreximbank Africa Trade Centre [AATC], which will manage the Bank’s operations in the region and oversee trade-related financing activities in Uganda.

“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,” said Kasaija.

https://thecooperator.news/uk-funded-project-to-revamp-over-100-roads-across-kampala/

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