Uganda, Korea sign $500m loan agreement

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Uganda and the Republic of Korea have signed a framework agreement for loans from the Korean Economic Development Cooperation Fund for the years 2024 through 2028.

"In accordance with the existing agreement between the Government of the Republic of Korea and the Government of the Republic of Uganda concerning loans from the Economic Development Cooperation Fund, signed on April 13, 2012, the Ugandan Minister of Finance Matia Kasaija, together with the Korean Minister of Foreign Affairs Hon. Cho Tae-yul, have, today 5th June 2024, signed the Framework Agreement for a US$500m loan from Korea EXIM Bank," read a statement released on Wednesday by the Ministry of Foreign Affairs.

The signing ceremony took place at the Korean Ministry of Foreign Affairs in Seoul on the sidelines of the First Korea-Africa Summit which concluded on Wednesday.

Amb. Elly Kamahungye Kafeero, Director for Regional and International Cooperation and Ms. Lenina M. Rukikaire, First Secretary at the Ministry of Foreign Affairs attended the events.

Ugandan Minister of Finance Matia Kasaija with Korean Minister for Foreign Affairs Cho Tae-yul signing the framework agreement for a $500m loan from Korea EXIM Bank. (Credit: Ministry of Finance, Republic of Korea)

Under the terms of the Framework Agreement, the Korean Government shall enable the Ugandan Government to obtain loans from the Economic Development Cooperation Fund (EDCF) up to a maximum commitment amount in Korean Won not exceeding the equivalent of $500m for the year 2024 through 2028 to finance EDCF loan projects in the Republic of Uganda.

Kasaija is part of Uganda’s team led by the Vice President, Jessica Alupo who are in Seoul for the first Korea-Africa Summit held at the Ministry of Foreign Affairs of Korea in Seoul, which opened on June 2nd, 2024.

 The Summit ran from 4-5 June 2024, under the theme “The Future We Make Together: Shared Growth, Sustainability, and Solidarity.

Others on the Kampala team are ministers Chris Baryomunsi, ICT, Henry Okello Oryem, Minister of State for Foreign Affairs, Monica Jane Musenero of Science, Technology and Innovation, State for Works, Musa Francis Ecweru and Davinia Esther Anyakun, Minister of State for Gender, Labor and Social Development and Vice Chair of the Parliamentary Committee on Foreign Affairs, Fred Opolot. 

On Monday while meeting Chung Byung-won, Deputy Minister of Foreign Affairs of the Republic of Korea, minister Oryem said that the Kampala and Seoul government delegations had fruitful discussions on several topics including sustainable development, with a focus on tackling global challenges such as climate change, food security, supply chain stability, and health security.

Against the backdrop of ten (10) existing MoUs between Uganda and Korea, Oryema said that an additional two would be signed during the Summit, including a Trade and Investment Promotion Framework Agreement and another in Loan Financing.

Such a framework provides the Korean Investors predictability and stability in the cooperation that serves also as a channel to resolve difficulties faced by companies of the two nations investing and advancing into each other’s markets.