Kampala –
Uganda’s Parliament has approved a loan of US$18.09 million (UGX 66 billion) from the African Development Fund to support the expansion of the Uganda Cancer Institute (UCI). This funding is expected to significantly reduce the UGX 1.094 trillion that Ugandans spend annually on cancer treatment abroad, particularly in India and the United States.
The loan approval followed a request from the Ministry of Finance during a parliamentary session on March 5, 2025. The funding will support the East Africa Centres of Excellence for Skills and Tertiary Education in Biomedical Sciences Project – Phase I, which focuses on enhancing Uganda’s cancer treatment capacity.
Justification for the Loan
Minister of State for Finance, Henry Musasizi, emphasized the need for the expansion, citing Uganda’s rising cancer burden.
“Uganda records 60,000 new cancer cases annually. Many patients seek treatment abroad, costing the country between US$100 million and US$300 million per year. This project will help reduce that expenditure, and the introduction of bone marrow transplant (BMT) treatment will be a milestone in blood cancer treatment,” Musasizi stated.
He further explained that the loan comes with favorable repayment terms.
“The total amount to be borrowed from the African Development Fund is US$18.09 million, repayable over 50 years with a 10-year grace period. This loan has no interest but carries a 1% annual service charge on the disbursed balance.”
Parliamentary Debate and Concerns
Several Members of Parliament (MPs) supported the loan, highlighting its importance in strengthening Uganda’s healthcare system. Emmanuel Otaala (West Budama South) commended the initiative, stating that building local healthcare capacity is crucial.
“We have highly skilled Ugandan doctors working abroad. This loan will help us create a robust healthcare system at home,” Otaala said.
However, concerns were raised about Uganda’s increasing reliance on loans. Seth Wambede (Mbale City North) questioned the sustainability of continuous borrowing for essential services, while Richard Gafabusa (Bwamba County) stressed the urgency of improving cancer care.
“In the past three years, I have lost four close relatives to cancer. This is a loan we should have secured earlier. Cancer affects all of us, so we must act now,” Gafabusa stated.
Other MPs, including Santa Alum (Oyam DWR), shared personal experiences of inadequate facilities at UCI, urging Parliament to expedite funding approval.
Project Background and Challenges
The East Africa Centres of Excellence for Skills and Tertiary Education in Biomedical Sciences Project was first approved in 2015, with funding from the African Development Bank and the Ugandan government. However, the project has faced delays due to challenges such as COVID-19 disruptions and financial difficulties faced by contractors.
Minister Musasizi acknowledged these setbacks, noting that delays in construction had affected key project components, including procurement of laboratory and imaging equipment, ICT systems, and furniture installation.
“The demand for cancer treatment is growing, yet our infrastructure remains inadequate. Over 500 adult patients are currently on the waiting list for nuclear medicine. Expanding UCI is a government priority,” Musasizi emphasized.
The Way Forward
Despite concerns over poor planning and reliance on loans, Parliament approved the additional funding, recognizing the urgent need for better cancer treatment facilities. Once completed, the expanded UCI will also serve as a training center for medical students from Makerere University, Mbarara University of Science and Technology (MUST), and Gulu University.
With this approval, Uganda moves closer to improving local cancer care and reducing dependency on costly medical referrals abroad.