Uganda gets sh1.1 trillion AFREXIM Bank loan for projects support

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Uganda Government has received €270 million (about sh1.1 trillion) loan from the AFREXIM Bank to finance various development and infrastructure projects.

According to a press release signed by Finance Minister Matia Kasaija, the 10-year term Loan Facility is targeted towards financing investments in infrastructure and human capital development that were budgeted for in the financial year 2024/25 budget.

According to Kasaija, the funds will support sustainable growth and social economic transformation.

“These funds will support various government projects/programs including value addition to agriculture, support to the oil and gas sector, energy generation, transmission, and distribution, special export processing zones and industrial parks, construction and maintenance of existing road, rail and port infrastructure,” Kasaija said.

“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,” Kasaija added.

He said the loan extension to Uganda 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.

Kasaija said in addition to supporting Uganda's development objectives, the Afrexim Bank has chosen Uganda to host its East African regional office, which is currently under construction in Kampala's central business area along Yusuf Lule Road.

The East African Regional Office will host the Afrexim Bank Africa Trade Centre (AATC), the Bank's business in the region and other trade and 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,” Kasaija said.