Uganda secures over $2 billion in new World Bank concessional financing

Uganda has secured more than $2 billion (about UGX 7.6 trillion) in new concessional financing from the World Bank Group, following high-level engagements during the 2025 International Monetary Fund/World Bank Annual Meetings held in Washington D.C last week.

The commitment, announced by Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, marks the official return of large-scale concessional funding for Uganda and will be disbursed over the next three financial years. The new facility adds to the country’s existing World Bank investment portfolio of $4.9 billion, reflecting renewed confidence in Uganda’s fiscal reforms and development agenda.

“This is a major milestone for Uganda,” Mr. Ggoobi said. “The return of concessional financing means that the World Bank once again has confidence in our economic management and governance reforms.”

According to the Ministry of Finance, the fresh financing will be strategically directed toward high-impact sectors to drive Uganda’s tenfold growth strategy and accelerate national transformation.

Key priority areas include:

• Infrastructure development, focusing on roads, bridges, and electricity transmission and distribution.
• Human capital and skilling, through expanded investment in schools, training centers, and vocational programs.
• Productive sectors, including agriculture, irrigation, and water systems, as well as an export guarantee scheme to boost trade competitiveness.
• Technology and social protection, with new funding for IT innovation and targeted social safety programs.

These investments aim to enhance productivity, expand employment opportunities, and strengthen the country’s capacity to sustain long-term growth.

The World Bank’s evolving strategy—championed by its President Ajay Banga—shifts focus from traditional project lending toward mobilizing private capital for development.

Mr. Ggoobi said Uganda fully supports this shift, noting that the International Finance Corporation (IFC), the World Bank’s private sector arm, will play a critical role by providing patient capital to investors in key sectors such as minerals, renewable energy, agro-industrialization, science and innovation, and co-investment with State-owned Enterprises (SoEs).

“Development today is not just about government spending—it’s about unlocking the full power of the private sector to create sustainable jobs and inclusive growth,” he added.

Uganda also held discussions with the IMF on a new Extended Credit Facility (ECF) program, expected to commence after the 2026 general elections. The proposed program will focus on maintaining macroeconomic stability while deepening structural reforms to make Uganda’s economy more resilient and self-sustaining.

Key reform areas include:

• Boosting domestic revenue collection to reduce dependence on borrowing.
• Improving fiscal discipline, with a commitment to curb “budget games and unnecessary supplementary budgets.”
• Strengthening the financial sector to enhance credit access and financial inclusion.

Despite global economic uncertainty—partly driven by U.S. monetary policy shifts—the IMF praised Uganda’s strong performance, reaffirming it as one of the fastest-growing economies in Africa and the world.

The discussions also highlighted how the global economy has remained resilient due to private sector adaptability and the integration of artificial intelligence (AI) to boost productivity and efficiency. Uganda’s reform agenda, officials said, is designed to tap into these global trends while maintaining fiscal discipline at home.

During the meetings, Uganda’s delegation also interacted with Ugandans working within the IMF and World Bank, sharing updates on the national economy and ongoing policy reforms.

“Our focus is clear—to ensure that every dollar borrowed delivers measurable value to Ugandans,” Mr. Ggoobi said.

The new World Bank package signals renewed global trust in Uganda’s reform trajectory and positions the country for stronger, more inclusive growth in the years ahead.