Uganda Secures Shs338bn in Financing for Water and Urban Development Projects

In a significant boost to infrastructure development, Uganda’s Finance Minister, Matia Kasaija, today signed two major financing agreements with the French Development Agency (AFD) worth EUR 85 million (approximately Shs338,045,000,000).

The agreements, signed in the presence of the French Ambassador to Uganda, H.E. Xavier Sticker, and AFD Regional Director, Jean-François Arnal, are set to address pressing water and urban development needs in the Greater Kampala Metropolitan Area (GKMA).

The first agreement, worth EUR 45 million, is earmarked for the Kampala Water-Lake Victoria Water and Sanitation III project. This project is an expansion of previous phases and will increase the coverage and reliability of water services in Kampala and the surrounding areas.

Minister Kasaija highlighted that rapid urbanisation, industrial growth, and the expansion of service areas have put significant pressure on the city’s water supply system.

“This funding will build on phase one and two of the project and will enhance access to safe water for residents of the Greater Kampala Metropolitan Area,” said Kasaija.

The second agreement, valued at EUR 40 million, supports the Greater Kampala Metropolitan Area Urban Development Programme.

This programme will strengthen the capacity of key institutions, including the Ministry of Kampala Capital City and Metropolitan Affairs, the Kampala Capital City Authority (KCCA), and the eight local governments in the GKMA.

The goal is to improve coordination in delivering essential infrastructure services, positioning the region as a major economic driver for the country.

Minister Kasaija underscored the strategic importance of these investments, noting, “This financing is timely as it fits into our strategic aspirations of growing the size of our economy ten-fold, from the current GDP of USD 53 billion to USD 500 billion.”

The French Ambassador expressed pride in the collaboration, calling these projects a testament to the strong and enduring friendship between Uganda and France.

“These projects are a clear example of our continued commitment to supporting Uganda’s development,” Ambassador Sticker said.

AFD Regional Director Jean-François Arnal further emphasised that more than 50% of the French Development Agency’s portfolio in Uganda is dedicated to the water sector, reinforcing France’s focus on sustainable development in the country.

The funding is expected to greatly improve water infrastructure, urban development, roads, and drainage, benefiting millions in the rapidly growing Greater Kampala Metropolitan Area. The partnership between Uganda and France continues to address critical infrastructure challenges, ensuring a brighter and more sustainable future for the region.