The Arab Bank for Economic Development in Africa (BADEA) and the Government of Uganda have signed two Facility Agreements amounting to USD 150 million to strengthen Uganda’s private sector. The agreements were signed on the sidelines of the 41st Board of Governors meeting of the Trade and Development Bank Group (TDB Group) in Kigali, Rwanda, and attended by BADEA President H.E. Abdullah Almusaibeeh and Uganda’s Minister of Finance, Planning, and Economic Development, H.E. Matia Kasaija.
The BADEA and the Government of Uganda facility agreement aims to unlock financing for Uganda’s private sector through a mix of concessional loans and targeted deployment of funds to key economic sectors. Two-thirds of the funding, USD 100 million, is secured by the Government of Uganda under BADEA’s Private Sector window and will be disbursed through the Uganda Development Bank Limited (UDB), the country’s national development finance institution. UDB will on-lend to high-impact sectors such as agro-processing, infrastructure, manufacturing, health, and education.
The BADEA USD 150 million facility will serve as a key intervention to ease access to affordable credit for Uganda’s small and medium-sized enterprises (SMEs), many of which face prohibitive borrowing costs in the local financial markets. The facility is aligned with Uganda’s National Development Plan, which identifies the private sector, especially in agro-industrialization and infrastructure, as a central pillar for economic transformation. The funds channeled through UDB will also prioritize women and youth-led enterprises, helping to drive inclusive growth.
The agreements are part of BADEA’s 2030 Strategy, which promotes sustainable economic growth through diversified investments in Africa’s public and private sectors. Agro-processing, which contributes significantly to Uganda’s GDP and employment, is set to benefit from capital injections to support value addition, food security, and export growth. Infrastructure funding will target logistics and energy projects to reduce transaction costs and improve the investment climate, while investments in health and education will support long-term improvements in human capital.
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Speaking during the ceremony, BADEA President H.E. Abdullah Almusaibeeh noted: “Today’s loan agreement with the Government of Uganda is an outstanding example of how Governments can leverage from BADEA’s available financial instruments from both the public and private sectors as well as from trade finance windows to empower the private sector and advance countries’ social and economic development agenda.”
The signing event at the TDB Group’s 41st Board of Governors meeting reinforces the expanding collaboration between BADEA and African financial institutions. The TDB Group, a regional multilateral development finance institution, shares a focus on advancing trade, economic integration, and capital access for African nations. The use of this high-level platform underscores the role of regional institutions in mobilizing financial support for development priorities.
BADEA, established in 1974 by 18 Arab League member states, operates as a multilateral development bank with a mission to foster economic and technical cooperation between Arab and African countries. Headquartered in Khartoum, Sudan, BADEA has approved over 2,000 transactions valued at more than USD 15 billion over the last five decades. The bank currently operates in 44 non-shareholder Sub-Saharan African countries, including Uganda.
BADEA, with an authorized capital of USD 20 billion, offers a range of financing instruments, concessional public sector loans, private sector financing, trade finance, and technical assistance. Since expanding its mandate to the private sector, BADEA has focused on unlocking inclusive growth, employment, and value chain competitiveness. In 2024, the bank launched its inaugural EUR 500 million social bond, backed by its strong credit ratings (AA/A-1+ by S&P Global and Aa2 by Moody’s), allowing it to attract international capital for development financing in Africa.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.