Uganda has secured €85 million (approximately UGX 340 billion) in development aid from France to enhance water infrastructure and support urban development in the Greater Kampala Metropolitan Area (GKMA).
The funding agreement, signed on March 12, 2025, by Finance Minister Matia Kasaija and AFD Regional Director Jean-François Arnal at the Ministry of Finance, Planning, and Economic Development, marks a significant step in addressing Kampala’s growing infrastructure needs.
The partnership between Uganda and the French Development Agency (AFD) aims to improve critical infrastructure in the rapidly expanding capital region, where urbanisation and industrial growth have strained water services and urban facilities.
Of the total funding, €45 million (approximately UGX 180 billion) will support the second phase of the Kampala Water Lake Victoria Water and Sanitation Project. This phase will expand the water supply network, building on previous efforts to upgrade the Ggaba water treatment complex and establish a new treatment plant at Katosi.
“This funding will allow us to extend the water supply network, improve downstream infrastructure, and enhance access to safe water for residents of the Greater Kampala Metropolitan Area,” Minister Kasaija stated. He reaffirmed Uganda’s commitment to achieving 100% piped water access by 2040.
The €45 million soft loan will specifically fund the rehabilitation and extension of the water distribution network in North Kampala, benefiting an additional one million people. It will also include the installation of 2,600 prepaid meters in informal settlements to improve water accessibility.
The remaining €40 million (approximately UGX 160 billion) will fund the Greater Kampala Metropolitan Area Urban Development Program. This initiative aims to strengthen the Ministry of Kampala Capital City and Metropolitan Affairs and the Kampala Capital City Authority, enhancing their capacity to deliver coordinated infrastructure and services. The program will address broader urban development needs beyond water infrastructure.
Minister Kasaija emphasized that this financing aligns with Uganda’s long-term economic ambitions.
“This funding is timely and aligns with our vision of expanding Uganda’s economy tenfold, from the current GDP of $53 billion to $500 billion by 2040,” he said. He also assured full accountability, pledging that the funds would be used strictly for designated projects, with regular progress reports submitted to development partners.
Beatrice Anywar Atim, Minister of State for Environment, highlighted the importance of ensuring water reaches end-users while protecting water sources.
“We have water, but how do we ensure it reaches those who need it?” she asked. She also urged Ugandans to refrain from activities that contaminate or degrade water sources, stressing the need to protect vital resources like Lake Victoria. “Our water sources are national assets that must be safeguarded by all Ugandans,” she added.
In addition, the Ugandan government has requested an additional €150 million to extend clean water services to other regions, including Masaka and beyond.
French Ambassador to Uganda, Xavier Sticker, reaffirmed France’s dedication to strengthening Uganda’s water infrastructure.
“This project is a testament to the enduring and strong friendship between our two countries,” he said, emphasizing France’s commitment to improving Uganda’s water supply through strategic investments and technical expertise.
AFD Regional Director Jean-François Arnal highlighted the importance of climate-resilient urban infrastructure.
“Given Uganda’s geographical position, climate change is expected to bring more frequent and intense rainfall, often leading to flooding. The €40 million co-financing from AFD prioritizes infrastructure investments that will strengthen urban resilience,” he noted.
The project will increase water production capacity from 160 million litres per day to 240 million litres. The loan will be on-granted to the National Water and Sewerage Corporation (NWSC), which will oversee implementation.
NWSC Managing Director Eng. Dr. Silver Mugisha outlined future expansion plans, pending presidential approval €80 million for Kampala, €34 million for Masaka and €44 million for Bara.
He stressed that the project would address water supply challenges, particularly in underserved areas like Kawempe.
“This project will ensure that everyone—especially residents in the northeastern parts of Kampala—has sufficient water,” he said.