Uganda has signed a $295 million loan agreement with Saudi Islamic Development Bank (IDB), said the East African country’s finance minister on Tuesday.
According to Reuters, the move highlights Uganda’s effort to diversify its source of external funding as talks with the World Bank to resume lending have been unsuccessful.
According to the finance minister, the $295 million loan would be used for funding the construction of roads and other special projects within the East African country.
The key projects in view include: the Masindi-Port Bridge where the ferry crosses the River Nile & connects to the Renkunye-Apac-Lira Road as well as the Kyenjojo-Kihura-Bwizi-Rwamwanja-Kahunge(68km)/Mparo-Bwizi (37km) Road which connects Kamwenge town to Kampala Fort Portal Highway.
According to a post made on X (formerly Twitter) by Ugandan Finance Minister, Matia Kasaija, the loan was signed after agreement was reached with IDB President, Muhammad Al Jassar, in Saudi Arabia’s capital, Riyadh.
The loan will go to the funding of roads in the country totaling 105km and a bridge crossing the River Nile in North West Uganda.
The finance minister on behalf of the Ugandan government thanked the Islamic Development Bank for the cordial cooperation that exists between the Bank and the government of Uganda.
He also thanked the Development Bank for establishing a regional hub in Kampala.
The finance minister also signed a framework agreement with the Islamic Trade Finance Corporation (ITFC) arm of the Islamic Development Bank to facilitate trade in Uganda.