Uganda recently secured a $295 million loan from the Saudi Islamic Development Bank (IDB) to fund road construction projects. This move comes as Uganda seeks alternative sources of funding due to unsuccessful talks with the World Bank.
The loan will support the construction of key roads, including the Masindi-Port Bridge and the Kyenjojo-Kihura-Bwizi-Rwamwanja-Kahunge Road. It will also finance a bridge crossing the River Nile in North West Uganda.
Ugandan Finance Minister, Matia Kasaija, signed the loan agreement with IDB President, Muhammad Al Jassar, in Riyadh, Saudi Arabia. The minister expressed gratitude for the cooperation between Uganda and IDB, as well as the establishment of a regional hub in Kampala.
In addition to the loan agreement, Uganda also signed a framework agreement with the Islamic Trade Finance Corporation (ITFC) to facilitate trade. Uganda is only 14% Muslims. But the Islamic Trade Finance came to their aid when turned down by the western controlled IMF.
This loan comes as the World Bank suspended new loans to Uganda after the enactment of a controversial anti-homosexuality law. The Islamic Development Bank has become a significant donor to Uganda, providing support in areas such as roads, energy, and education.
