Uganda has signed two financing agreements worth €85 million with the French Development Agency (AFD) to support key water and urban development projects.

Finance Minister Matia Kasaija signed the agreements on behalf of the Government of Uganda, alongside AFD Regional Director Jean-François Arnal and French Ambassador to Uganda, H.E. Xavier Sticker.

The financing includes €45 million for the Kampala Water-Lake Victoria Water and Sanitation III Project, aimed at expanding access to safe water for residents of the Greater Kampala Metropolitan Area. The project will build on previous phases by enhancing the distribution network of the Katosi Water Treatment System, addressing the growing demand caused by rapid urbanization, industrial growth, and service area expansion.

Additionally, €40 million has been allocated to the Greater Kampala Metropolitan Area Urban Development Program, which seeks to strengthen the capacity of the Ministry of Kampala Capital City and Metropolitan Affairs, Kampala Capital City Authority (KCCA), and eight local governments. The goal is to improve infrastructure coordination and enhance the city's role as a key driver of Uganda’s economy.

"This financing is timely as it fits into our strategic aspirations of growing the size of our economy tenfold, from the current GDP of $53 billion to $500 billion," said Finance Minister Kasaija.

French Ambassador Xavier said that these projects reflect the deep and enduring partnership between Uganda and France, while AFD Regional Director Arnal highlighted that over 50% of the agency’s investments in Uganda are dedicated to the water sector.