Uganda has solidified its partnership with the Islamic Development Bank (IDB) of Saudi Arabia by signing a significant loan agreement worth $295 million. This financial boost is earmarked for crucial infrastructure projects, announced the country’s Finance Minister, Matia Kasaija, on Tuesday.
The agreement, signed in Riyadh, the capital of Saudi Arabia, marks a pivotal moment for Uganda’s economic development strategy. Minister Kasaija, in a statement shared on the social media platform X, emphasized the importance of diversifying Uganda’s sources of external funding, especially given the prolonged discussions with the World Bank that have yet to yield results.
The loan from IDB will be instrumental in funding several key projects, notably the construction of a bridge over the River Nile in northwest Uganda and the development of approximately 105 kilometers of roads, as outlined by the Ministry of Finance.
This funding will go towards construction of Masindi-Port Bridge where the ferry crosses river Nile and connects to Renkunye-Apac-Lira road. The other road project is Kyenjojo-Kihura-Bwizi-Rwamwanja-Kahunge (68km)/Mparo-Bwizi (37km) road which connects Kamwenge town to Kampala Fort Portal highway.
The World Bank, historically a major financial partner for Uganda, halted new lending activities to the country following the implementation of stringent anti-homosexuality legislation.
