Overview:
The meeting came as Uganda and the EU mark 50 years of bilateral relations, with the partnership increasingly moving beyond traditional development assistance to areas such as trade, energy, infrastructure, climate finance and private-sector development.
Uganda and the European Union have pledged to deepen economic cooperation by shifting their 50-year partnership towards increased investment, trade, infrastructure development and private-sector growth.
Finance Minister Henry Musasizi said Uganda values the EU partnership and wants closer cooperation to translate into more investment, jobs, exports and sustainable economic growth.
“We value the European Union’s longstanding partnership with Uganda and look forward to strengthening cooperation that translates into investment, jobs, exports and sustainable economic growth,” Mr Musasizi said on Friday after meeting a delegation led by the EU Ambassador to Uganda, Mr Jan Sadek.
The meeting came as Uganda and the EU mark 50 years of bilateral relations, with the partnership increasingly moving beyond traditional development assistance to areas such as trade, energy, infrastructure, climate finance and private-sector development.
Mr Sadek said the EU remains committed to working closely with the Ministry of Finance, which he described as the bloc’s primary counterpart for development cooperation.
He said the EU-Uganda bilateral development cooperation envelope for 2021-2027 stands at €539 million, while Team Europe—the EU and its member states and financial institutions—provides more than €750 million annually in development assistance to Uganda.
According to Mr Sadek, the cooperation focuses on sustainable and inclusive growth and jobs, governance and social inclusion, and connectivity, in line with the EU’s Global Gateway investment strategy.
He said the partnership is also evolving towards a broader financing model combining grants, loans, guarantees and blended finance to mobilise more private investment.
Under Global Gateway, Team Europe is investing about €1.4 billion in Uganda’s private-sector development, including about €300 million in grants targeting access to finance, skills development, the business environment and productive infrastructure.
Mr Sadek said the EU is also supporting productive sectors and value chains with potential to drive Uganda’s long-term economic growth, including coffee, forestry, tourism and critical raw materials.
The support also covers energy, transport and digital connectivity.
“Our portfolio is broad and designed to deliver practical results while supporting Uganda’s own priorities,” Mr Sadek said.
Energy investment
Energy was among the key areas discussed, with the rehabilitation of the Nalubaale and Kiira hydropower plants highlighted as one of the flagship Team Europe projects in Uganda.
The project has a €170 million financing package comprising €30 million in EU grants and concessional loans from the European Investment Bank and the French Development Agency.
The rehabilitation is intended to extend the lifespan of the two strategic renewable-energy assets by at least another 30 years.
“The rehabilitation of the Nalubaale and Kiira hydropower plants is one of our flagship Team Europe initiatives in Uganda,” Mr Sadek said.
The EU and Uganda also discussed climate finance, including Uganda’s preparations to issue its first sovereign green bond.
Mr Sadek said the EU is interested in supporting Uganda’s preparedness and exploring how the planned bond could help attract international private capital into sustainable investments.
Trade growth
Trade between Uganda and the EU has also expanded significantly over the past decade.
Mr Sadek said Uganda’s exports to the EU increased from €377 million in 2015 to €1.8 billion in 2025.
Uganda recorded a trade surplus of about €950 million with the EU in 2025, according to the ambassador.
The figures point to the growing importance of the European market for Ugandan exports as the two sides seek to deepen commercial ties.
For Uganda, the focus on investment, value addition and private-sector financing could help move the relationship beyond aid towards a partnership that supports production, exports and job creation.
The discussions also come as Uganda seeks to attract more long-term capital to finance infrastructure, energy and productive sectors as part of its broader economic transformation agenda.