Overview:
The signing of the agreement is a significant milestone in the relationship between Uganda and South Korea, and is expected to further strengthen economic ties between the two countries.
Uganda and South Korea have signed a framework agreement for a $500 million loan to support infrastructure development projects in Uganda. The agreement was signed on Wednesday in Seoul, South Korea, on the sidelines of the First Korea-Africa Summit.
The agreement was signed by Ugandan Minister of Finance, Matia Kasaija, and South Korean Minister of Foreign Affairs, Cho Tae-yul. The loan will be provided by the Korea EXIM Bank and will be used to finance infrastructure projects in Uganda over the next five years, from 2024 to 2028.
The loan will support various infrastructure development projects, including road construction and upgrading, bridge construction, energy generation and transmission, water supply and sanitation, and telecommunications infrastructure.
The loan is part of the Economic Development Cooperation Fund (EDCF), which was established in 2012 to support economic development in partner countries. The fund has supported various projects in Uganda, including infrastructure development, energy, and agriculture.
The signing of the agreement is a significant milestone in the relationship between Uganda and South Korea, and is expected to further strengthen economic ties between the two countries.
Matia Kasaija was accompanied by Amb. Elly Kamahungye Kafeero, Director for Regional and International Cooperation, and Ms. Lenina M. Rukikaire, First Secretary at the Ministry of Foreign Affairs, Uganda.
Kasaija said the loan is expected to have a positive impact on the economy and improve the lives of Ugandans by supporting infrastructure development, promoting economic growth, and creating jobs.