Uganda and South Korea Forge $500 Million Loan Agreement for Economic Development

In Seoul, South Korea, Uganda and the Republic of Korea have entered into a significant agreement by signing a $500 million (Shs1.9 trillion) loan Framework Agreement. This momentous event, occurring alongside the conclusion of the First Korea-Africa Summit, unfolded at the Korean Ministry of Foreign Affairs.

The agreement spans from 2024 to 2028 and was formally signed by Uganda’s Finance Minister, Matia Kasaija, and Korean Foreign Minister, Cho Tae-yul. It constitutes a segment of the ongoing 2012 Economic Development Cooperation Fund (EDCF) agreement, which is administered through Korea EXIM Bank.

Over the next four years, Korea will extend $500 million in loans to Uganda, earmarked for various developmental endeavors. These funds are poised to drive economic growth and bolster infrastructural advancements within Uganda.

Present at the ceremony from Uganda were Ambassador Elly Kamahungye Kafeero, Director for Regional and International Cooperation, and Ms. Lenina M. Rukikaire, First Secretary at the Ministry of Foreign Affairs.

Minister Kasaija expressed his enthusiasm for the loan’s potential impact, highlighting its significance for Uganda’s development trajectory. He remarked, “This agreement signals a fresh chapter in Uganda-Korea relations. The financial assistance will play a pivotal role in executing critical projects aimed at propelling economic growth and enhancing the well-being of Ugandans.”