Uganda has re-entered the World Bank’s lending portfolio with a pledge of over $2 billion in concessional financing over the next three financial years, marking a significant milestone in the country’s economic development strategy.
On 20 September, at the conclusion of the International Monetary Fund (IMF) and World Bank Annual Meeting in Washington, DC, Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, announced the return of concessional financing to one of Africa’s fastest-growing markets. The funding will support a wide range of infrastructure and social projects, including transportation, energy, ICT, agriculture, education, water and irrigation, and export-guarantee schemes.
The World Bank resumed lending to Uganda in June, following a nearly two-year suspension triggered by the country’s controversial anti-LGBTQ legislation, which includes the death penalty for certain same-sex offences. The resumption came after months of engagement and structural reforms by the Ugandan government.
Ggoobi confirmed that the new financing aligns with Uganda’s Tenfold Growth Strategy, which prioritises investments in technology and productivity-enhancing sectors. The funds will be directed towards road and bridge construction, electricity transmission and last-mile distribution, regional city development, ICT systems, skills development, and social protection programmes.
In addition to the World Bank’s support, the International Finance Corporation (IFC), the private-sector arm of the World Bank Group, is providing “patient capital” to fund ventures in renewable energy, minerals, agro-industrialisation, science and innovation. The IFC will also co-invest with the government in state-owned enterprises (SOEs), reflecting a broader global shift towards blended-finance mechanisms that attract private capital to strategic sectors.
Uganda is currently in negotiations with the IMF for a new Extended Credit Facility (ECF) programme, after the previous $1 billion arrangement lapsed last year before full disbursement. The new programme is expected to focus on key reforms, including enhanced domestic revenue mobilisation, stricter budget controls, and strengthened financial-sector regulation.
This renewed partnership with international financial institutions signals a pivotal moment for Uganda’s development agenda, as it seeks to harness both public and private capital to drive inclusive growth, and maintain its position as one of the fastest growing economies in Africa.
