Uganda secures $800 Million IsDB financing for key development projects
By Ahmed Idriss
Uganda has secured a major boost for its development agenda after signing an $800 million (approximately Shs 2.92 trillion) Financing Agreement with the Islamic Development Bank (IsDB). The deal, finalized during the 50th IsDB Group Annual Meetings in Algiers, Algeria, will fund critical infrastructure, healthcare, water, and energy projects across the country.
The agreement was signed by Ramathan Ggoobi, Uganda’s Permanent Secretary and Secretary to the Treasury, and Rami Ahmed, IsDB Vice-President on Wednesday. It marks a step in Uganda’s efforts to enhance economic resilience and sustainable development between 2025 and 2027.
Major projects to benefit from the funding
Among the key initiatives to be supported are the construction of Regional Oncology Centersin Arua and Mbale, aimed at improving cancer treatment access in underserved regions. The Bukedea Water Works Project will expand clean water supply, while the Second Drylands Integrated Development Project in Karamoja (DIDPK-II) seeks to strengthen food security and climate resilience in the drought-prone sub-region.
Infrastructure development will also receive a major push, with funding allocated to the Standard Gauge Railway Project, a priority for regional trade and connectivity. Road upgrades, including the Nakapiripirit-Amudat and Namalu-Lolachat-Nabilatuk-LokapelRoads, as well as the Isingiro-Kigarama-Kashumba-Kasheshe-Tanzania Border Road, will improve transport networks and cross-border trade.
In the health sector, Katakwi General Hospital will undergo rehabilitation and expansion, while a new Lwengo General Hospital will be established to enhance healthcare access.
Additionally, the Rural Electrification and Connectivity Project will expand energy access to underserved communities, supporting economic growth and digital inclusion.
Strategic focus areas
The financing framework is structured under two main pillars. The first, Supporting Climate-Resilient Infrastructure Development, prioritizes transport, energy, and agricultural projects to drive structural transformation and food security.
The second, Enhancing Human Capital for Inclusive Development, focuses on healthcare, vocational training, and skills development in key sectors such as agriculture, ICT, and petroleum.
Six cross-cutting priorities will further guide implementation, including tourism development, digital transformation, climate adaptation, women and youth empowerment, Islamic finance, and private sector growth.
The $800 million package includes $500 million from the IsDB, with an additional $150 million each from the Islamic Corporation for the Development of the Private Sector (ICD) and the International Islamic Trade Finance Corporation (ITFC). The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has also committed $400 million to support insurance and reinsurance efforts.
Beyond Uganda, the IsDB approved over $1.32 billion in development financing for member countries during its 360th Board Meeting, covering transport, health, water, and climate resilience projects.
