Uganda secures $295m loan from S. Arabia’s IDB

Uganda has recently inked a deal with the Islamic Development Bank (IDB) of Saudi Arabia, securing a $295 million loan aimed at supporting road construction and various developmental initiatives, Reuters reported on Tuesday citing the country’s finance minister’s announcement.

This strategic move reflects Uganda’s commitment to broadening its avenues for external financing, particularly as discussions with the World Bank regarding loan resumption have stagnated.

Finance Minister Matia Kasaija formalised the loan agreement alongside IDB president Muhammad Al Jassar in Riyadh, the capital of Saudi Arabia, as the Ugandan minister posted on X.

The allocated funds are earmarked for the construction of a bridge spanning the River Nile in northwest Uganda, in addition to the development of roads totaling 105 kilometers, as outlined by the ministry.

Following the implementation of stringent anti-homosexuality legislation, the World Bank, historically a principal lender to Uganda, ceased issuing new loans to the country, according to Reuters.