The Committee on National Economy will examine the government’s requests to secure loans for the purpose of upgrading roads and funding the Climate Smart Agricultural Transformation Project. These loan proposals were presented by the Finance Minister, Hon. Matia Kasaija, during the plenary session on Tuesday, October 10, 2023.
The government is seeking to borrow US$295 million from the Islamic Development Bank and US$30 million from the OPEC Fund for International Development. These funds will be allocated to improve the National Roads Project, with the government contributing US$22 million. The project’s implementation is expected to expand the nation’s transport infrastructure, lower freight transportation costs, and reduce travel time.
Key components of this road upgrade project include:
| Project | Road | Distance (in km) |
|---|---|---|
| Katine-Ochero Road | Soroti to Kaberamado | 70 km |
| Ferry Landing Site Link | Bukungu-Kaberamaido-Kagwara | To be connected |
| Masindi Port Bridge | Not specified | To be constructed |
| Kyenjojo-Bwizi-Rwamwanja-Kahunge Road | Not specified | 68 km |
| Mpara-Bwizi Road | Not specified | 37 km |
The proposal from Minister Kasaija highlights that Uganda’s debt-to-GDP ratio remains sustainable, standing at 47.1% as of June 2023, in comparison to 48.4% in June 2022.
Additionally, the government is looking to secure US$325 million from the International Development Association of the World Bank Group and a grant of US$25 million to finance the Uganda Climate Smart Agricultural Transformation Project. The government will contribute US$4.7 million to this initiative. These funds aim to enhance agricultural productivity by investing in efficient irrigation, agricultural mechanization, and improved farm infrastructure.
The funding proposal indicates that the agricultural project will span 69 districts, including seven that host refugees, across Uganda’s six agro-ecological zones. Kasaija also noted that the value chains promoted in the project align with those of the Parish Development Model, benefiting around 13.4 million individuals directly and indirectly, including refugee-hosting communities.
Deputy Speaker Thomas Tayebwa has urged the committees reviewing the loan requests to promptly report their findings to the House.
