In a significant development, Uganda has entered into an agreement with the Islamic Development Bank (IDB) to secure a substantial loan of $295 million. The funds are earmarked for critical infrastructure projects, including road construction and other vital initiatives within the country. This move underscores Uganda’s commitment to diversifying its external funding sources, especially in light of the prolonged negotiations with the World Bank, which have yet to yield results.
Key Details
- Loan Amount: $295 million
- Lender: Islamic Development Bank (IDB)
- Purpose: Infrastructure projects, including road construction
- Signing Ceremony: Ugandan Finance Minister Matia Kasaija and IDB President Muhammad Al Jassar signed the loan agreement in Saudi Arabia’s capital, Riyadh.
- Infrastructure Projects: The financing will support the construction of a bridge spanning the River Nile in northwest Uganda, as well as the development of roads totaling 105 kilometers.
World Bank Suspension
The World Bank, traditionally Uganda’s largest external lender, suspended new loans to the country following the enactment of a stringent anti-homosexuality law. As a result, Uganda has sought alternative funding avenues, leading to the recent agreement with the IDB. 🌍💰🛣️🌉
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Source: Reuters