Top Story: Uganda Secures $150 Million BADEA Deal to Boost Private Sector and MSMEs
KIGALI, Rwanda — Uganda has inked a landmark $150 million financing agreement with the Arab Bank for Economic Development in Africa (BADEA), aimed at accelerating private sector growth and empowering micro, small, and medium enterprises (MSMEs). The deal was signed on the sidelines of the 41st Board of Governors Meeting of the Trade and Development Bank Group (TDB Group) in Kigali, Rwanda.
Uganda’s Finance Minister Matia Kasaija and BADEA President Abdullah Almusabeeh presided over the official signing ceremony.
The financing package is split into two strategic components:
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$100 million (UGX 358.3 billion) from BADEA’s private sector window will be disbursed through the Uganda Development Bank (UDB). These funds will support high-impact sectors including agro-processing, manufacturing, infrastructure, health, and education.
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The remaining $50 million (UGX 179.1 billion) from the public sector window will be targeted toward MSME development, focusing on agriculture, agro-industry, infrastructure, and social services.
The initiative is aligned with BADEA 2030, the bank’s long-term strategic plan prioritizing infrastructure development, SME financing, private sector support, agricultural value chains, and capacity building.
“Today’s agreement is a prime example of how governments can tap into BADEA’s suite of financial instruments to empower the private sector and fast-track development,” said Abdullah Almusabeeh, BADEA President.
Since its inception, BADEA and affiliated Arab financial institutions have committed more than $2.5 billion (UGX 8.9 trillion) to Uganda’s development agenda across key sectors like energy, transport, agriculture, health, education, and water infrastructure.
Dr. Patricia Adongo Ojangole, Managing Director of UDB, praised the agreement as a powerful step toward inclusive economic growth:
“By empowering MSMEs, we are not only enhancing livelihoods but also driving long-term, inclusive growth,” she said.
Minister Kasaija welcomed BADEA’s evolving financing model, applauding the shift from a public sector-dominated approach to a balanced strategy that actively promotes private sector development and trade.
“Over the last five decades, BADEA’s partnership has focused largely on infrastructure. Today, they are responding to our call for broader development financing that includes the private sector,” said Kasaija.
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