Overview:

Uganda and the Islamic Development Bank commit to scaling up the Local Economic Growth Support project from 17 to 55 districts after a successful first phase.

KAMPALA, Uganda — The Ugandan government and the Islamic Development Bank have affirmed their commitment to a key development partnership, announcing that a successful economic growth project will be dramatically scaled up to reach 55 districts across the country.

The Local Economic Growth Support project, or LEGS, funded by the IsDB, has concluded its initial phase, delivering significant investments across 17 districts in agriculture, infrastructure, and financial inclusion. Following the positive outcomes, both parties confirmed that LEGS Phase II will expand economic opportunities and strengthen local development far more broadly.

During a project closure workshop in Kampala last week, Local Government Ministry Undersecretary Haji Sewante M. Kaliphan praised the project’s visible impact and teamwork. He reaffirmed that all newly created assets must remain under the ownership of local governments, who will assume responsibility for their long-term maintenance.

Key Investments Drive Local Economy

The initial phase of LEGS focused on improving basic services and bolstering agricultural value chains:

  • Water Infrastructure: Eight piped water systems, including gravity flow schemes, were completed in districts like Alebtong, Kumi and Ntoroko. These systems now provide safe water access to more than 63,000 residents, reducing water shortages.
  • Climate Resilience: Five major irrigation and water-for-production facilities were established in districts including Gomba and Katakwi. These facilities, such as the Palam Multipurpose Irrigation Scheme, now serve over 57,600 people, ensuring year-round water for crops and livestock to combat climate variability.
  • Value Addition: Nine modern agro-processing plants were constructed to strengthen key agricultural chains. These facilities include oilseed extraction factories, rice processing units in Bunyangabu and coffee factories in Nakaseke and Ntoroko, helping farmers generate greater income.
  • Dairy Sector: Six fully equipped milk collection centers were established across districts like Kumi and Kyenjojo. Featuring high-capacity coolers, these centers support over 28,000 dairy farmers by reducing spoilage and professionalizing the dairy value chain.

Representing the Islamic Development Bank, Country Operations Manager Mouchili Moyoua commended LEGS for its performance, labeling it a “human dignity project” due to the strong collaboration witnessed across all levels of government and community.

Moyoua confirmed the bank’s satisfaction with the recorded achievements and reaffirmed the IsDB’s commitment to continued partnership as the project prepares to scale up to 55 districts.