The Government of Uganda, through the Ministry of Finance, Planning and Economic Development, has secured a $800 million (UGX 2.92 trillion) financing agreement from the Islamic Development Bank (IsDB) to support economic resilience and sustainable human development from 2025 to 2027.
The Country Engagement Framework (CEF) was signed by Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, and Rami Ahmed, Vice-President of the Islamic Development Bank, during the 50th IsDB Group Annual Meetings in Algiers, Algeria.
The CEF outlines strategic areas of engagement between Uganda and the IsDB, paving the way for targeted investments in critical sectors.
According to Ggoobi, the first strategic pillar under the CEF is Supporting Climate-Resilient Infrastructure Development, with a strong emphasis on transport and energy infrastructure. These investments aim to accelerate structural transformation and boost agricultural productivity to enhance food security and expand Uganda’s export base.
The second pillar focuses on Enhancing Human Capital for Inclusive Development, targeting improvements in health outcomes and skills development. Priority sectors include agriculture, hospitality, health, ICT, and petroleum.
Six cross-cutting themes will support these pillars:
- Development of tourism infrastructure and human capital
- Promotion of digitalization, ICT, and innovation
- Climate change mitigation and adaptation
- Women and youth empowerment
- Promotion of Islamic finance
- Private sector development and competitiveness
The IsDB will provide $500 million (UGX 1.825 trillion)
- The Islamic Corporation for the Development of the Private Sector (ICD) and the International Islamic Trade Finance Corporation (ITFC) will each contribute $150 million (UGX 547.6 billion)
- The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has earmarked $400 million (UGX 1.46 trillion) for insurance and reinsurance
Key projects to be funded include:
- Regional Oncology Centers in Arua and Mbale
- Bukedea Water Works Project
- Second Drylands Integrated Development Project in Karamoja (DIDPK-II)
- Standard Gauge Railway Project
- Rehabilitation and expansion of Katakwi General Hospital and establishment of Lwengo General Hospital
- Rural Electrification and Connectivity Project
- Road upgrades in Nakapiripirit-Amudat and Namalu-Lolachat-Nabilatuk-Lokapel
- Isingiro-Kigarama-Kashumba-Kasheshe-Tanzania Border Road
- Water Supply and Sanitation Program III
At the 360th Meeting of the IsDB Board of Executive Directors, held during the ongoing Annual Meetings, the Bank approved over $1.32 billion in development financing across its member countries. The funding supports inclusive growth, climate resilience, and economic opportunity, focusing on transport, health, water, food security, vocational training, and rural livelihoods.
These initiatives underscore the IsDB’s commitment to impactful, inclusive development across its member states.
This year’s Annual Meetings are themed “Diversifying Economies, Enriching Lives,” aligning well with Uganda’s 10-Fold Growth Strategy.