The Government of Uganda has signed two facility agreements worth USD 150 million (approximately UGX 537.5 billion) with the Arab Bank for Economic Development in Africa (BADEA) to bolster private sector growth and expand access to credit for micro, small, and medium enterprises (MSMEs).
The agreements were signed by Abdullah Almusabeeh, President of BADEA, and Matia Kasaija, Uganda’s Minister of Finance, Planning and Economic Development, on the sidelines of the 41st Board of Governors Meeting of the Trade and Development Bank Group (TDB Group) in Kigali, Rwanda.
Of the total amount, USD 100 million was secured under BADEA’s Private Sector Window to support the Uganda Development Bank Limited (UDB) in lending to key sectors including agro-processing, infrastructure, manufacturing, health, and education. The remaining USD 50 million, under BADEA’s Public Sector Window, is earmarked for financing MSMEs in agriculture, industry, infrastructure, health, and education.
This intervention aligns with BADEA 2030, the Bank’s long-term strategy focused on infrastructure development, trade finance, SME support, agricultural value chains, and capacity building.
“Today’s loan agreement with the Government of Uganda is an outstanding example of how governments can leverage BADEA’s financial instruments across both public and private sectors to drive social and economic transformation,” said Almusabeeh.
According to BADEA, the bank and its sister Arab development institutions have collectively committed over USD 2.5 billion to Uganda’s development across sectors such as agriculture, transport, energy, education, health, and water and sanitation.
Dr. Patricia Adongo Ojangole, Managing Director of UDB, hailed the agreement as a major step toward inclusive growth.
“We are proud to partner with BADEA and the Government of Uganda in strengthening private sector development through strategic investments. This collaboration demonstrates our commitment to improving livelihoods and fostering sustainable economic growth, especially in agriculture, health, and infrastructure,” she said.
Finance Minister Matia Kasaija praised BADEA’s increasing flexibility in responding to Uganda’s evolving development priorities.
“Our partnership with BADEA has matured over the decades, largely supporting public infrastructure. Today’s commitment marks a shift toward empowering the private sector and facilitating trade — a vital step in our national development agenda,” he said.
