The government of Uganda has secured a loan of more than UGX1.23 trillion from the Islamic Development Bank Group (IsDB) for the construction of vital roads in the country.
According to a statement by the Finance Minister, Matia Kasaija, who is attending the 2024 Islamic Development Bank Group Annual Meetings in Riyadh, Saudi Arabia, from April 27–30, 2024, the government signed a financing agreement with the president of the bank group, H.E. Dr. Muhammad Al Jassar, worth USD 295 million (approximately UGX 1.13 trillion) on April 29, 2024, for the upgrading of national roads.
This development follows parliament’s approval during the plenary session that took place on December 13, 2023, which was chaired by Speaker Anita Annet Among. The Parliament gave the government permission to borrow USD 325 million (worth UGX 1.23 trillion) where USD 295 million was supposed to be got from IsDB while USD 30 million (over UGX 114 billion) from the OPEC Fund for International Development. The government is as well, expected to provide USD 22 million (over UGX 83 billion) for land acquisition.
The finance ministry said that the funding will go towards the construction of the Masindi-Port Bridge, where the ferry crosses the Nile and connects to the Renkunye-Apac-Lira road.
The other road project highlighted is the Kyenjojo-Kihura-Bwizi-Rwamwanja-Kahunge (68 km)/Mparo-Bwizi (37km) road, which connects Kamwenge town to the Kampala-Fort Portal highway.
The finance minister, on behalf of the government of Uganda, extended gratitude to IsDB for the cordial cooperation that exists with them and also appreciated them for establishing a regional hub in Kampala.
The group was further given assurances by Kasaija that the agreement’s terms would be fulfilled.
“I want to affirm that we shall fulfill our obligations under the agreement,” Kasaija said.
IsDB is the 3rd largest multilateral donor to Uganda, contributing over 20% support in areas of roads, energy, and education (skills development).
Kasaija also signed a framework agreement with the Islamic Trade Finance Corporation (ITFC) arm of the ISDB group to facilitate trade in Uganda.
