Uganda, S. Korea ink infrastructure development deal

Uganda has secured a $500 million loan from South Korea in a deal to support the infrastructure development in the country, the Ugandan Finance Ministry stated

According to the ministry’s post on X, South Korea’s EXIM Bank will be the provider of the loan. However, specifics regarding the infrastructure projects to be financed were not disclosed, though Uganda typically seeks funding for initiatives related to roads and energy.

This additional credit is expected to exacerbate Uganda’s mounting debt challenges, a concern that led Moody’s to downgrade the country’s rating recently, citing “diminished debt affordability.”

As of December 31, Uganda’s public debt had reached $24.6 billion, largely due to investments in infrastructure.

The agreement was formalised by Uganda’s finance minister, Matia Kasaija, and South Korea’s Minister of Foreign Affairs, Cho Tae-Yul, on the sidelines of the Korea-Africa summit in Seoul.