HomeRegional NewsEast AfricaUganda signs a €51.7m financial treaty with AFD

Uganda signs a €51.7m financial treaty with AFD

Ugandan gov has signed three financing treaties of 51.7 million euros with the AFD at the French embassy in Uganda

In East Africa, the Ugandan government has engaged in three new financing treaties with the French embassy in Uganda and the French Development Agency (AFD), totalling €51.7 million.

Signing of the contracts took place between the minister of finance, planning and economic development Matia Kasaija, and the French ambassador Sophie Makame, along with the director of AFD in East Africa, Yves Boudot, reports local media, the Observer.

Funds to accelerate rural electrification

Two of the financing contracts will be implemented by the Rural Electrification Agency, targeting to accelerate the extension of rural electrification from the national grid to local communities.

The villages which stand to benefit from the implementation of the project are in regions of the north-western part in Uganda, Rwenzori areas, the mid-west and southwest.

Makame expressed confidence in the project adding that: “This project is expected to significantly enhance the implementation of the Sustainable Energy For All (SE4ALL) initiative for which Uganda is a front-runner.”

The total cost for the project amounts to €55.5 million, based on a soft loan of €42.9 million for the 1,500km medium voltage and 1,300km low voltage, as well as a €8,3 million grant secured through the EU-ITF (Infrastructure Trust Fund) to reduce the connection costs and support capacity building.

The third financing agreement is a €500,000 grant intended to support several feasibility studies and capacity building activities, within the context of the forthcoming extension of water resources and water distribution in Masaka and Mbarara areas, under the public water supply and sanitation company, National Water and Sewerage Corporation.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.