By Leonard Kamugisha Akida,
NATIONAL
Ugandan government has acquired a five hundred ($500) million US dollar from South Korea’s Exim Bank to expand its road infrastructure, the ministry of finance said on Wednesday.
“In accordance with the existing Agreement between the Government of the Republic of Korea and the Government of the Republic of Uganda concerning Loans from the Economic Development Cooperation Fund, signed on April 13, 2012, the Ugandan Minister of Finance Hon. Matia Kasaija, together with the Korean Minister of Foreign Affairs Hon. Cho Tae-yul, have, today 5th June 2024, signed the Framework Agreement for a $500m loan from Korea EXIM Bank,” read a statement on the ministry’s website.
The move underscores the Uganda’s increasing reliance for credit on foreign lenders after the World Bank halted all new lending to Uganda earlier last year in protest at a new anti-homosexuality law.
The ceremony took place at the Korean Ministry of Foreign Affairs in Seoul on Wednesday June 5.
The loan according to reports is to enable the Ugandan government to finance the Economic Development Cooperation Fund (EDCF) loan projects in the Uganda.
Hon. Matia Kasaija signed the loan agreement on behalf of Uganda while Hon. Cho Tae-yul, signed on behalf of South Korea.
Kasaija was accompanied by Amb. Elly Kamahungye Kafeero, Director for Regional and International Cooperation and Ms. Lenina M. Rukikaire, First Secretary at the Ministry of Foreign Affairs.
The signing of this loan agreement comes few days when the minister of finance, planning and economic development, Matia Kasaija is expected to present to the nation a Shs72. 136 trillion budget for the financial year 2024/25 amid accumulating debt burden.
