The World Bank has reinstated over $2 billion in concessional financing to Uganda, ending a two-year suspension and reinforcing its commitment to the country’s development strategy.
The financing will support key sectors of the Ugandan economy, including infrastructure, energy, and industrial projects, as part of the government’s long-term growth plan.
Uganda’s Secretary to the Treasury, Ramathan Ggoobi, confirmed the resumption of funding, stating that the World Bank’s renewed support aligns with Uganda’s Tenfold Growth Strategy, an economic framework targeting a $500 billion economy by 2040.
The plan prioritizes agro-industrialization, tourism, mineral resource development, and science and technology innovation.
The new financing package will fund road and bridge construction, electricity transmission, and other essential infrastructure projects.
The World Bank’s private sector arm, the International Finance Corporation, will also channel additional investments into renewable energy and mineral value-chain development, strengthening Uganda’s industrial capacity and energy diversification efforts.
The World Bank suspended lending to Uganda in 2023 following the enactment of legislation that introduced harsh penalties, including the death sentence, for those convicted of aggravated homosexuality.
The institution said the law contradicted its core principles of non-discrimination and inclusion, leading to a temporary halt in new project approvals and disbursements.
The suspension limited Uganda’s access to concessional credit, constraining public investment and slowing implementation of ongoing infrastructure and development programs.
Concessional financing from the World Bank typically offers lower interest rates and longer repayment periods than commercial borrowing, making it a critical component of Uganda’s fiscal stability and capital investment framework.
Following a series of reviews and new safeguards, the World Bank has now restored its partnership with Uganda. The Bank said it has strengthened oversight measures to ensure that all projects comply with its standards on inclusion and human rights.
Ggoobi described the return of concessional lending as a major boost to Uganda’s economic goals, noting that the World Bank remains the country’s largest development partner, with an existing portfolio exceeding $5 billion.
Uganda also plans to resume discussions with the International Monetary Fund for a new funding arrangement after the general elections scheduled for January 2026.
The government expects the combined support from the World Bank and IMF to stabilize public finances, attract foreign investment, and accelerate growth in key economic sectors.
The resumption of World Bank funding comes at a time when Uganda is seeking to strengthen fiscal resilience and expand infrastructure investment amid global economic uncertainty.
The country’s medium-term outlook remains focused on industrial growth, energy access, and sustainable resource development to drive productivity and long-term competitiveness in East Africa.
The World Bank’s decision to restore concessional lending to Uganda marks a critical step in rebuilding international financial engagement.
It underscores renewed confidence in Uganda’s development policies and highlights the balance between global institutions’ governance standards and the economic realities of emerging markets.
The restoration of funding is expected to unlock stalled projects, create employment opportunities, and reinforce Uganda’s position as one of East Africa’s key growth economies. With the new financing commitment in place, Uganda is positioned to accelerate its infrastructure expansion and move closer to achieving its 2040 economic vision.