Uganda secures $500m loan from Korea EXIM Bank

Uganda has secured a $500m (sh1.9 trillion) loan from Korea EXIM Bank to finance the construction of infrastructure projects.

The Minister of Finance, Planning and Economic Development, Matia Kasaija signed the agreement on behalf of Uganda with the Korean Minister of Foreign Affairs Hon. Cho Tae-yul, on June 5, 2024, in Seoul, the Korean capital.

The 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.

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 Five Hundred Million US dollars (US$ 500,000,000) for the years 2024 through 2028 to finance EDCF loan projects in the Republic of Uganda.

Minister Kasaija was accompanied by Amb. Elly Kamahungye Kafeero, Director for Regional and International Cooperation and Lenina M. Rukikaire, First Secretary at the Ministry of Foreign Affairs, Uganda.

During the Arican-Korean summit, Korean President Yoon Suk announced billions of dollars in new aid and investment support for Africa.

Yoon pledged to double the current official development aid to Africa to $10 billion by 2030, and would also provide $14 billion of export financing to help Korean firms expand trade and investment across the continent.

"We will also actively contribute to Africa's regional economic integration efforts through the African Continental Free Trade Zone (AfCFTA), which was launched in 2019," Yoon said.