In a landmark move to address infrastructure challenges, Uganda’s Finance Minister, Matia Kasaija, signed two major financing agreements worth EUR 85 million (approximately Shs338 billion) with the French Development Agency (AFD).
The agreements, aimed at improving water and urban development in the Greater Kampala Metropolitan Area (GKMA), were signed in the presence of French Ambassador Xavier Sticker and AFD Regional Director Jean-François Arnal.
Key Projects Funded
Kampala Water-Lake Victoria Water and Sanitation III Project (EUR 45 million)
This project builds on previous phases to expand water coverage and reliability in Kampala and surrounding areas.
“Rapid urbanisation and industrial growth have strained our water supply system. This funding will enhance access to safe water for millions,” said Minister Kasaija.
Greater Kampala Metropolitan Area Urban Development Programme (EUR 40 million)
This initiative will strengthen institutions like the Ministry of Kampala Capital City and Metropolitan Affairs, Kampala Capital City Authority (KCCA), and eight local governments.
The programme aims to improve coordination in delivering essential infrastructure services, positioning GKMA as a key economic hub.
Strategic Impact
Minister Kasaija highlighted the alignment of these projects with Uganda’s long-term economic goals.
“This financing supports our vision to grow Uganda’s economy from USD 53 billion to USD 500 billion,” he said.
Related: USAID Suspension Opens Doors for Uganda to Seek New Global Partners
France’s Commitment to Uganda
Ambassador Sticker praised the partnership, calling it a reflection of the strong ties between Uganda and France.
“These projects demonstrate our commitment to Uganda’s sustainable development,” he stated.
Jean-François Arnal, AFD Regional Director, noted that over 50% of AFD’s portfolio in Uganda focuses on water projects, underscoring France’s dedication to addressing critical infrastructure needs.
What’s Next?
The funding is expected to transform water infrastructure, urban development, roads, and drainage systems in GKMA, benefiting millions of residents.
This partnership marks a significant step toward a more sustainable and prosperous future for the region.
