17/10/2025
Uganda’s Finance Minister Presents Major External Financing Proposal to Parliament
On behalf of the government, Finance Minister Matia Kasaija appeared before the Parliamentary Committee on National Economy to seek approval for a significant borrowing and grant financing package aimed at supporting key national development projects. He was accompanied by several Cabinet Ministers, including Gen. Edward Katumba Wamala (Minister of Works and Transport), Dr. Bright Rwamirama (Minister of State for Animal Industry), Dr. Sam Mayanja (Minister of State for Lands), Lillian Aber (Minister of State for Relief, Disaster Preparedness and Refugees), and Dr. John Chrysestom Muyingo (Minister of State for Higher Education).
Proposed Financing Structure
The proposal includes:
A request to borrow up to USD 1.341 billion from the International Development Association (IDA), a concessional lending arm of the World Bank.
Grants amounting to USD 328.3 million from the same institution to complement the loan and reduce the financial burden on the national budget.
These funds are intended to support a number of critical development programs aligned with Uganda’s strategic objectives for inclusive growth, infrastructure improvement, and service delivery enhancement.
Targeted Programs and Projects
The financing will be allocated to the following key initiatives:
Northern Uganda Social Action Fund (NUSAF IV) – Phase four of this longstanding program aims to improve livelihoods, enhance social protection, and support community development in Northern Uganda.
Development Response to Displacement Impacts Project (DRDIP II) – Phase two focuses on addressing the socio-economic impacts of hosting large numbers of refugees, particularly in displacement-affected communities.
Uganda Learning Acceleration Program (ULEARN) – Aims to strengthen foundational learning outcomes in primary education and accelerate recovery from COVID-19-induced learning gaps.
Uganda Cities and Municipalities Infrastructure Development (UCMID) Program – Designed to improve urban infrastructure and service delivery across selected cities and municipalities to support Uganda’s urbanization strategy.
Strengthening Public Investment and Asset Management for Growth and Resilience (PIMPLUS) – Seeks to enhance public investment efficiency and institutional capacity for managing public assets.
Additional Loan Proposals for Infrastructure and Agriculture
Minister Kasaija also presented additional borrowing proposals for sector-specific projects:
USD 20 million from the Arab Bank for Economic Development in Africa (BADEA) to fund the upgrading of the Nebbi–Goli road (16km) in Northern Uganda.
EUR 115.88 million from Standard Chartered Bank to finance the critical oil roads package 6B, which includes:
Karugutu–Ntoroko road (56km)
A connecting road to Rwebisengo (8.2km)
Town roads in Ntoroko (3.3km)
Totaling approximately 68km of road infrastructure to support oil development and regional connectivity.
EUR 192.96 million from Citi Bank to support Phase I of the Enhancing Agricultural Production, Quality and Standards for Market Access Project, which is expected to:
Improve the quality and competitiveness of Ugandan agricultural products
Strengthen food safety standards
Facilitate access to both local and international markets
Parliamentary Consideration and Next Steps
Minister Kasaija emphasized that these investments are critical to achieving Uganda’s Tenfold Growth Agenda, a government vision for rapid socio-economic transformation through strategic investments in infrastructure, human capital, and production sectors.
The proposals were formally received by the Chairperson of the Committee on National Economy, Hon. Ikojo John Bosco, who affirmed the Committee’s commitment to rigorously examine the proposals and present a comprehensive report to the House for debate and approval.