The government of Uganda and the Islamic Development Bank (IsDB) have signed a new deal to fund infrastructure projects worth $4800million (about 2.9trillion ) .
The agreement which will also support human capital development for three years was signed by Uganda’s Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, and Dr Rami Ahmed, Vice-President of IsDB ,
The signing took place during the 50th Annual Meetings of the Islamic Development Bank Group in n Algiers, Algeria. , underscoring a shared commitment to strengthen the country’s infrastructure and human capital base.
Among the major projects to be financed under the CEF are the construction of Regional Oncology Centers in Arua and Mbale, the Bukedea Water Works Project, and the Second Drylands Integrated Development Project in Karamoja (DIDPK-II).
Other priority investments include the Standard Gauge Railway Project, the rehabilitation and expansion of Katakwi General Hospital, the establishment of Lwengo General Hospital, the Rural Electrification & Connectivity Project, and critical road upgrades such as the Isingiro-Kigarama-Kashumba-Tanzania Border Road.
The framework is anchored on two strategic pillars:
Pillar one: Supporting climate-resilient infrastructure development
This focuses on developing transport and energy infrastructure to drive structural transformation and strengthen interventions in agriculture to boost food security and expand Uganda’s export base.
Pillar two:
Enhancing human capital for inclusive development
This pillar will prioritize health outcomes and skills development, particularly in agriculture, hospitality, ICT, petroleum, and health sectors.
“These pillars will also be supported through six cross-cutting areas,” said Ggoobi, “including tourism development, promotion of digitalization, climate change mitigation and adaptation, empowerment of women and youth, Islamic finance promotion, and enhancing private sector competitiveness.”
The total resource envelope for the three-year framework is $800 million. Of this, $500 million will be provided by the Islamic Development Bank. The Islamic Corporation for the Development of the Private Sector (ICD) and the International Islamic Trade Finance Corporation (ITFC) will each contribute $150 million. Additionally, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has pledged $400 million for insurance and reinsurance services.
The Islamic Development Bank has a track record of supporting Uganda, including its funding of the Muyembe-Nakapiripirit Road upgrade to Bitumen standard at a cost of Shs399 billion.