Uganda secures $295m from Saudi after World Bank snub over anti-LGBTQ+ laws
Uganda has inked a significant deal with the Islamic Development Bank (IDB) of Saudi Arabia, securing a $295 million loan.
This financial agreement, signed by Uganda's Finance Minister Matia Kasaija, aims to fuel infrastructure development, particularly in road construction and other crucial projects within the country.
The loan agreement signed in Riyadh, Saudi Arabia's capital, is an effort by Uganda to diversify its external funding following protracted discussions with the World Bank to resume lending.
The funding injection from IDB comes as a response to Uganda's persistent efforts to advance its infrastructure funding. The allocated funds are earmarked for the construction of a bridge over the River Nile in the northwest region of Uganda, along with the development of approximately 105 kilometers of roads, as disclosed by the Finance Ministry.
“This funding will go towards construction of Masindi-Port Bridge where the ferry crosses river nile & connects to Renkunye-Apac-Lira road. The other road project is Kyenjojo-Kihura-Bwizi-Rwamwanja-Kahunge(68km)/Mparo-Bwizi (37km) road which connects Kamwenge town to Kampala Fort Portal highway,” the Ugandan Ministry of Finance posted on X.
Adding that, “IDB is the 3rd largest multilateral donor to Uganda contributing over 20% support in areas of roads, energy and education (skills development)”
The World Bank, historically a key financier for Uganda, on August 8, 2023, the World Bank made public its decision to halt any further financial support to Uganda, citing reservations about the nation's anti-homosexuality legislation, deeming it in direct opposition to the core values upheld by the World Bank Group.
“Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values. We believe our vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality. This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world. No new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested.”
