Uganda secures shs54 billion financing from BADEA

Kampala, Uganda | THE INDEPENDENT | Uganda has has secured a financing facility worth 150 Million Dollars (about 53.7 Billion Shillings) from the Arab Bank for Economic Development in Africa (BADEA) to support private sector growth.‎

‎This is under the agreement signed by BADEA and the Minister of Finance, Planning and Economic Development, at the margin of the 41st Board of Governors of the Trade and Development Bank Group (TDB Group) in Kigali, Rwanda.

‎Two thirds of this (100 Million Dollars)  or about 358 Billion Shillings, was secured under BADEA’s Private Sector window to support the Uganda Development Bank Limited (UDB) in on-lending to vital sectors of the economy.

‎These include agro-processing, infrastructure, manufacturing, health, and education.

‎The remaining third (50 million dollars) is secured under BADEA’s Public Sector window.

‎This is aimed at financing micro, small and medium enterprises (MSMEs) operating in agriculture, agro-processing and industry, infrastructure, and health education sectors.

‎This goes in line with BADEA 2030, the Bank’s strategic framework revolving around 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 from BADEA’s available 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 agenda,” said Abdullah Almusabeeh, BADEA President.

‎ Since its inception, BADEA and its sister institutions from the Arab Communication have committed around 2.5 Billion Dollars to Uganda’s development priorities across sectors, including agriculture, transport, energy, education, health, and water supply and sanitation infrastructures.

‎Patricia Adongo Ojangole, UDB Managing Director, lauded BADEA and the government of Uganda for their commitment towards private sector growth in Uganda.

‎“This collaboration embodies our commitment to fostering economic development across Uganda, particularly in the critical sectors of the economy including agriculture, health, and infrastructure,” she said, adding,

“By empowering micro, small, and medium enterprises, we are not only enhancing livelihoods but also driving sustainable growth in Uganda,” she said.

‎On his part, Matia Kasaija, Minister of Finance, Planning and Economic Development commended the relationship between Uganda and BADEA over half a century.

‎“Over the last five decades, our partnership has been more focused on public sector interventions, especially in infrastructure. Today, BADEA has stood up to call for finance for development to expand its financial instruments to the private sector and trade.”

‎BADEA is a rated multilateral development finance institution owned by 18 sovereign states, members of the League of Arab States which began operations in March 1975.

‎The Bank’s mission revolves around promoting social and economic development exclusively in Sub Saharan Africa, fostering cooperation between the Arab and the African regions through investment and trade.

*****

URN