Overview:
According to the Ministry of Finance, the funding will support Uganda’s economic resilience and drive sustainable human development, with a focus on climate-smart infrastructure and human capital development.
Uganda has signed a major financing agreement worth USD 800 million (approximately UGX 3 trillion) with the Islamic Development Bank (IsDB) to support key national development projects over the next three years.
The agreement—formally known as the Country Engagement Framework (CEF) for 2025–2027—was signed on May 20, 2025, by Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury (PSST), and Dr. Rami Ahmed, Vice-President of the Islamic Development Bank. The signing took place during the 50th IsDB Annual Meetings in Algiers, Algeria.
According to the Ministry of Finance, the funding will support Uganda’s economic resilience and drive sustainable human development, with a focus on climate-smart infrastructure and human capital development.
The framework is anchored on two key pillars:
- Climate-Resilient Infrastructure Development:
This includes investments in roads, energy, and agricultural infrastructure to boost food security, improve transport systems, and strengthen Uganda’s export capacity. - Human Capital for Inclusive Development:
This focuses on better health services and skills training in agriculture, ICT, petroleum, hospitality, and healthcare, especially for youth and women.
Some of the major projects to benefit from the funding include: Construction of regional cancer treatment centres in Arua and Mbale, Bukedea Water Works Project, Drylands Development Project in Karamoja and Standard Gauge Railway (SGR) development.
Others are Upgrading Katakwi General Hospital and setting up a new general hospital in Lwengo, Rural Electrification and Connectivity Projects, Road upgrades in Nakapiripirit, Isingiro, and cross-border routes to Tanzania and Water Supply and Sanitation Program III.
Out of the USD 800 million, USD 500 million will come directly from the Islamic Development Bank and USD 150 million each from the Islamic Corporation for the Development of the Private Sector (ICD) and the International Islamic Trade Finance Corporation (ITFC).
Additionally, USD 400 million will be made available by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) to support insurance and reinsurance for the projects
The financing aligns with Uganda’s broader 10-fold Growth Strategy, which aims to diversify the economy and create more jobs through investment in infrastructure, technology, and human development.
Speaking after the signing, Ggoobi welcomed the partnership as a timely boost to Uganda’s post-COVID recovery and economic transformation drive.
“The Islamic Development Bank remains a trusted partner in our journey to improve lives and deliver inclusive development,” Ggoobi said.
At the same meeting in Algeria, the IsDB Board approved USD 1.32 billion in development financing for several member states, targeting climate resilience, rural livelihoods, water and food security, and vocational training.
The 2025 meeting’s theme, “Diversifying Economies, Enriching Lives,” closely aligns with Uganda’s current development agenda, especially its focus on agro-industrialisation, infrastructure modernisation, and job creation.