The Arab Bank for Economic Development in Africa (BADEA) and Uganda have signed two Facility Agreements totaling $150 million to drive private sector development.
The agreements were formalized by BADEA president Abdullah Almusabeeh and Matia Kasaija, the minister for Finance, Planning and Economic Development, during the 41st board of governors meeting of the Trade and Development Bank Group (TDB Group) in Kigali.
The funding is split across BADEA’s Private and Public Sector windows. Uganda Development Bank Limited (UDB) will receive $100 million to support on-lending to key sectors, including agro-processing, infrastructure, manufacturing, health, and education.
An additional $50 million will finance micro, small, and medium enterprises (MSMEs) in agriculture, agro-processing, industry, infrastructure, and health education. This fits with BADEA’s 2030 strategic framework, emphasizing infrastructure, private sector growth, trade finance, SMEs, agricultural value chains, and capacity development.
“These agreements exemplify how governments can leverage BADEA’s financial instruments to empower the private sector and advance socioeconomic development,” said BADEA’s Almusabeeh.
Kasaija lauded the long-standing partnership with BADEA, noting thjat for five decades, Uganda’s collaboration with the bank has focused on public sector infrastructure.
“Today, BADEA’s expanded financial instruments for the private sector and trade mark a significant step forward in addressing Uganda’s development priorities,” he said.
Since its establishment, BADEA and its sister institutions under the Arab Coordination Group have committed approximately $2.5 billion to Uganda’s development across agriculture, transport, energy, education, health, and water supply and sanitation.
Dr. Patricia Adongo Ojangole, managing director of UDB, praised the partnership.
“This collaboration strengthens our commitment to fostering economic growth in Uganda, particularly in agriculture, health, and infrastructure. By supporting MSMEs, we are enhancing livelihoods and driving sustainable development,” she said.
