Islamic Bank Gives Uganda US$ 800 Million for Infrastructure Projects

The Permanent Secretary and Secretary to the Treasury (PSST), Ramathani Ggoobi and the Islamic Development Bank Vice-President Dr. Rami Ahmed on Wednesday signed a country engagement framework (CEF) for Uganda for the period 2025 to 2027 to support economic resilience and sustainable human development.        

A statement from the Finance Ministry said the signing ceremony took place during the 50th Annual meetings of the Islamic Development Bank Group in Algiers, Algeria taking place between 19th to 22nd May 2025.           

According to the statement, the first strategic pillar under framework is Supporting Climate Resilient Infrastructure Development with focus on transport and energy infrastructure, which will help to accelerate the pace of structural transformation as well as interventions in the agriculture sector to help boost food security and expand the export base.                             

The second pillar is Enhancing Human Capital for Inclusive Development with focus on the improvement of health outcomes as well as skills development, particularly in the areas of agriculture, hospitality, health, ICT and petroleum. 

The six cross-cutting areas which will support pillars 1 and 2 are: Support to tourism through development of infrastructure and human capital, promoting digitalization and leveraging ICT and Science, technology and innovation (STI) in development interventions, climate change mitigation and adaptation, promoting women and youth empowerment, promoting Islamic finance and enhancing private sector development and competitiveness.         

The IsDB Group has allocated a resource envelope of US$ 800 million for the three-year duration of this country engagement framework (CEF).         

Of this, the IsDB has allocated US$ 500 million, while the Islamic Corporation for the Development of the Private Sector (ICD) and the International Islamic Trade Finance Corporation (ITFC) have each allocated US$ 150 million.               

In addition, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has made available US$ 400 million for insurance and reinsurance. Priority projects.                      

The major projects to be funded include: Construction of Regional Oncology Centers in Arua/ Mbale, Bukedea Water Works Project, the Second Drylands Integrated Development Project in Karamoja (DIDPK-II), Standard Gauge Railway Project, Rehabilitation, Expansion and Equipping of Katakwi General Hospital and Establishment of Lwengo General Hospital.                                    

Others are:  Rural Electrification & Connectivity Project, Upgrading of Nakapiripirit-Amudat and Namalu-Lolachat-Nabilatuk-Lokapel Roads, Isingiro-Kigarama-Kashumba-Kasheshe-Tanzania Border Road and Water Supply and Sanitation Program III.                             

During the 360th Meeting of the IsDB Board of Executive Directors at the 2025 IsDB Annual Meetings, the Islamic Development Bank (IsDB) approved over US$1.32 billion in development financing to drive inclusive growth, climate resilience, and economic opportunity across its Member Countries.                           

The approvals span the transport and health sectors, water and food security, vocational training, rural livelihoods, and climate resilience, among others.             

These strategic projects reflect IsDB's commitment to inclusive development, resilience, and impact at scale across member countries. The theme of this year’s meeting is Diversifying Economies, Enriching Lives” and it resonates well with Uganda’s 10-fold Growth Strategy.