Arab Bank for Economic Development in Africa (BADEA) and the Government of Uganda have signed two Facility Agreements amounting to USD 150,000,000 (Shs 537.4 billion) to support private sector growth.
The agreements have been signed by Abdullah Almusabeeh, BADEA President, and Matia Kasaija, 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.
The Government secures 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 vital 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. It aims 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,” H.E. Abdullah Almusabeeh, BADEA President said during the event.
Since its inception, BADEA and its sister institutions from the Arab Communication have committed around USD 2.5 billion (Shs 8.9trillion) to Uganda’s development priorities across sectors, including agriculture, transport, energy, education, health, and water supply and sanitation infrastructures.
The Managing Director of Uganda Development Bank, Dr. Patricia Adongo Ojangole, lauded BADEA and the government of Uganda for their commitment towards 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 embodies our commitment to fostering economic development across Uganda, particularly in the critical sectors of the economy including 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, Minister of Finance, Planning and Economic Development of Uganda said; “Our partnership with BADEA has been thriving year after year. I commend BADEA’s agility in responding to our government calls on development priorities.”
He said 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.
