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The Arab Bank for Economic Development in Africa and the Government of Uganda have signed two facility agreements amounting to USD150,000,000 to support private sector growth.
The agreements were signed by Abdullah ALMUSABEEH, BADEA President, and Matia Kasaija, Minister of Finance, Planning and Economic Development, on the sidelines of the 41st Board of Governors meeting of the Trade and Development Bank Group (TDB Group) in Kigali, Rwanda.
The Government has secured two-thirds of this loan (USD 100,000,000) under BADEA’s Private Sector window to support the Ugandan Development Bank Limited (UDB) in on-lending to key sectors of the economy, including agro-processing, infrastructure, manufacturing, health, and education.
The remaining third (USD 50,000,000) is secured under BADEA’s Public Sector window and aims to finance micro, small, and medium enterprises (MSMEs) in agriculture, agro-processing, industry, infrastructure, and health education sectors.
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This aligns with BADEA 2030, the Bank’s strategic framework focused on infrastructure, private sector and trade finance, SMEs, agricultural value chains, and capacity development.
“Today’s loan agreement with the Government of Uganda is an outstanding example of how governments can leverage BADEA’s financial instruments from both the public and private sectors, as well as from trade finance windows, to empower the private sector and advance countries’ social and economic development agendas,” said Abdullah ALMUSABEEH, BADEA President, during the event.
This aligns with BADEA 2030, the Bank’s strategic framework focused on infrastructure, private sector and trade finance, SMEs, agricultural value chains, and capacity development.
Since its inception, BADEA and its sister institutions from the Arab Coordination Group have committed around USD 2.5 billion to Uganda’s development priorities, spanning agriculture, transport, energy, education, health, and water supply and sanitation infrastructure.
The Managing Director of Uganda Development Bank, Dr. Patricia Adongo Ojangole, praised BADEA and the Government of Uganda for their commitment to private sector growth in Uganda.
“We are proud to partner with the Government of Uganda and BADEA in supporting the growth of the private sector through strategic investments. This collaboration reflects our commitment to fostering economic development across Uganda, particularly in critical sectors such as agriculture, health, and infrastructure. By empowering micro, small, and medium enterprises, we are not only enhancing livelihoods but also driving sustainable growth in Uganda,” she said.
Matia Kasaija, Uganda's Minister of Finance, Planning and Economic Development, highlighted: “Our partnership with BADEA has been growing year after year. I commend BADEA’s responsiveness to our government’s calls on development priorities. Over the last five decades, our partnership has focused mainly on public sector interventions, particularly in infrastructure. Today, BADEA has answered the call for finance for development by expanding its financial instruments to support the private sector and trade.”