Uganda secures Shs2.7 trillion from Standard Chartered Bank for development projects

Uganda has lined up €641.1 million (approximately Shs2.75 trillion) in new external financing to fast-track flagship investments in power transmission, water supply and strategic road infrastructure—projects the government views as critical building blocks for long-term economic transformation.

The financing follows the signing of agreements between the Government of Uganda and Standard Chartered Bank on Friday, January 30, with Finance Minister Matia Kasaija signing on behalf of the state and Standard Chartered Uganda CEO Sanjay Rughani representing the lender.

Government officials say the package directly supports Uganda’s Ten-Fold Growth Strategy, which aims to expand the size of the economy from about USD 53 billion today to USD 500 billion by 2040 by removing infrastructure bottlenecks and crowding in private investment.

Under the deal, Standard Chartered will act as both arranger and co-financier for the three projects, leveraging guarantees from international export credit agencies to secure longer repayment periods and relatively affordable financing terms.

The biggest share of the funding—€342.5 million (about Shs1.4 trillion)—will be channelled into the electricity sector, financing the construction of the 400kV Karuma–Tororo double-circuit transmission line and the Ntinda substation. The project is expected to improve evacuation of power from the Karuma Hydropower Plant, supply major industrial hubs such as Tororo Industrial Park, and enhance Uganda’s capacity for regional power trade.

Mr Kasaija said the investment would reduce losses linked to idle generation capacity while strengthening the electricity backbone needed to support industrialisation and job creation. The power project is backed by Sweden’s export credit institutions—EKN and SEK—with EKN executing its first-ever transaction in Uganda.

Another €182.8 million (Shs754.5 billion) has been earmarked for Phase II of the Strategic Towns Water Supply and Sanitation Project, which will expand access to clean water and sanitation services in Nakasongola and clusters of towns across Kamuli, Mayuge, Bugweri and Alebtong districts. The project is expected to benefit around 740,000 people by 2030 and is supported by China’s export credit insurer, Sinosure.

The third facility, valued at €115.8 million (about Shs486 billion), will finance the construction of key oil roads in the Albertine region, including the Karugutu–Ntoroko road, the Rwebisengo link and roads within Ntoroko town. The upgrades are seen as vital for unlocking oil and gas investments, improving cross-border trade with the Democratic Republic of Congo, and boosting tourism around Lake Albert. This component is backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICEIC).

Standard Chartered Africa CEO Dalu Ajene said the financing illustrated how partnerships between governments, global banks and export credit agencies can mobilise long-term capital for projects with broad economic and social returns.

The signing ceremony was attended by senior cabinet ministers, permanent secretaries, diplomatic representatives, Standard Chartered executives and contractors involved in implementing the projects.