The Government of Uganda has signed a $150 million loan agreement with the Arab Bank for Economic Development in Africa (BADEA), equivalent to over UGX 537 billion. The funding aims to accelerate private sector development and strengthen inclusive economic growth.
The agreement was signed on July 31, 2025, in Kigali, Rwanda, during the Annual General Meeting of the Eastern and Southern African Trade and Development Bank (TDB Group). The event also marked TDB’s 40th anniversary of supporting Africa’s development financing efforts.
The TDB meeting in Kigali attracted more than 300 participants, including investors, policymakers, and decision-makers from across Eastern and Southern Africa.
Breakdown of the $150 Million Loan
The agreement was officially signed by Abdullah ALMUSABEEH, President of BADEA, and Matia Kasaija, Uganda’s Minister of Finance, Planning, and Economic Development.
- $100 million will be channeled through BADEA’s private sector lending program, targeting key sectors such as:
- Agro-processing
- Infrastructure
- Manufacturing
- Healthcare
- Education
- The remaining $50 million will support Uganda’s public sector, particularly small and medium-sized enterprises (SMEs) involved in:
- Agriculture
- Value addition
- Industry
- Educational and health infrastructure
This loan is in line with BADEA’s long-term strategy dubbed “BADEA 2030”, which focuses on:
- Enhancing infrastructure
- Empowering the private sector
- Supporting trade
- Financing small and medium enterprises (SMEs)
- Promoting inclusive economic development in Africa
Officials Commend the Strategic Partnership
Dr. Patricia Adongo Ojangole, CEO of the Uganda Development Bank (UDB), praised both the Government of Uganda and BADEA for their commitment to sustainable development.
“We are proud to partner with the Government of Uganda and BADEA in advancing the private sector through well-structured investments,” she said.
BADEA President Abdullah ALMUSABEEH highlighted the importance of collaboration:
“Today’s loan agreement with Uganda is a great example of how countries can utilize diverse financing mechanisms to stimulate private sector development and national economic goals.”
Uganda’s Finance Minister, Matia Kasaija, expressed optimism about the growing partnership:
“Our relationship with BADEA has strengthened year after year. While we have historically focused on public infrastructure, we are now shifting to include support for the private sector.”
He emphasized both parties’ commitment to promoting inclusive development.
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