Germany has committed Shs237 billion (€50 million) in grants to Uganda to support investments in water, electricity, agribusiness and local economic development, as the two countries seek to accelerate economic transformation and improve livelihoods.
The funding package was agreed upon following two days of Government-to-Government negotiations held in Kampala on November 3, 2026, building on a bilateral development partnership that has lasted more than 60 years.
Water and electricity will receive the largest share of the funding, with Shs166 billion (€35 million), representing 70 per cent of the total commitment.
Agribusiness and local economic development have been allocated Shs47.4 billion (€10 million), while Shs23.7 billion (€5 million) will support refugee participation and communities hosting refugees, among other interventions.
The package comprises Shs142.3 billion (€30 million) in Financial Cooperation and Shs94.9 billion (€20 million) in Technical Cooperation.
One of the major projects under the agreement is the electrification of the West Nile sub-region, for which Shs85.4 billion (€18 million) has been earmarked.
The project is expected to expand electricity access, support agricultural production and improve business activities in the region, which has strong trade links with eastern Democratic Republic of Congo and South Sudan.
Finance Minister Henry Musasizi said the German support is aligned with Uganda’s Fourth National Development Plan (NDP IV) and the Tenfold Growth Strategy, which targets expanding the country’s economy to US$500 billion by 2040 through Agro-Industrialisation, Tourism, Minerals, and Science, Technology and Innovation (ATMS).
“We appreciate this support. It comes at a time when resources for overseas development support are under pressure across Europe given the ongoing global challenges,” Musasizi said.
He welcomed the allocation to water and electricity, describing the sectors as critical enablers of Uganda’s economic transformation agenda.
Musasizi also called on German investors to explore opportunities in production, processing and exports, as well as creating skilled jobs in Uganda.
He further urged Germany to support efforts to mobilise financing for railway development, irrigation and electricity infrastructure through multilateral institutions, including the World Bank and African Development Bank.
The Head of the German Delegation, Joachim Schmitt, who also heads the Central and East Africa Division at Germany’s Federal Ministry for Economic Cooperation and Development, said the partnership would support Uganda’s ambition to graduate from Least Developed Country status.
“Our development cooperation will actively support this strategy, while being fully aligned to the Ugandan Vision 2040, its ’10-fold growth strategy’, including the ATMS priorities, as well as the ‘National Development Plan IV’,” Schmitt said.
He emphasised the importance of greater participation by Ugandan, German and European businesses in unlocking economic opportunities, creating jobs and supporting Uganda’s development.
Schmitt also commended Uganda’s refugee-hosting policies, reaffirming Germany’s continued focus on West Nile and its commitment to supporting refugees and host communities.
German Ambassador to Uganda, Sigrid Sommer, said the new commitments build on more than six decades of cooperation that have delivered tangible results.
She said the outcome of the negotiations provides a framework for development cooperation over the next two years, with projects aligned to Uganda’s national priorities.
She added that the new commitments build on more than 60 years of cooperation between the two countries and establish a framework for development interventions over the next two years.
Sommer reaffirmed Germany’s commitment to implementing the programmes alongside development partners, including GIZ and KfW, while strengthening trade and investment relations.
