Uganda has recently finalized a deal with the Islamic Development Bank (IDB) in Saudi Arabia, obtaining a loan of $295 million. The loan aims to support various projects, notably road construction and infrastructure development in the East African nation. Finance Minister Matia Kasaija formalized the agreement with IDB President Muhammad Al Jassar during a meeting in Riyadh, the capital of Saudi Arabia.
This agreement highlights Uganda’s efforts to broaden its sources of external funding, especially as discussions with the World Bank to resume lending have faced delays. The World Bank paused providing new loans to Uganda following the implementation of stringent anti-homosexuality legislation.
The funding from IDB will be crucial for Uganda’s infrastructure development plans, including the construction of a bridge over the River Nile in the northwest region and the development of roads spanning 105 kilometers, as announced by the Ministry of Finance. With the loan from IDB, Uganda aims to bolster its infrastructure, which is vital for economic growth and connectivity within the country.
Source: Arise News