Germany has committed €50 million (about Shs200 billion) in grants to Uganda to finance development projects in water, electricity, agribusiness, local economic development and refugee-hosting communities.
The commitment was announced following the conclusion of two days of Government-to-Government negotiations in Kampala on November 3, 2026, reinforcing a bilateral partnership that spans more than six decades.
The funding package comprises €30 million in Financial Cooperation and €20 million in Technical Cooperation.
Of the total allocation, €35 million (70%) will be directed towards water and electricity projects, while €10 million (20%) will support agribusiness and local economic development. The remaining €5 million will finance refugee participation and support for host communities, among other interventions.
Finance Minister Henry Musasizi said the funding aligns with Uganda’s National Development Plan IV and the Tenfold Growth Strategy, which seeks to expand the country’s economy to US$500 billion by 2040 through Agro-Industrialisation, Tourism, Minerals, and Science, Technology and Innovation (ATMS).
“We appreciate this support. It comes at a time when resources for overseas development support are under pressure across Europe, given the ongoing global challenges,” Musasizi said.
He particularly welcomed the €35 million allocation to water and electricity, describing the sectors as critical enablers of Uganda’s economic transformation agenda.
Musasizi also urged German investors to explore opportunities in Uganda’s production, agro-processing and export sectors, as well as skilled job creation. He proposed structured engagements between the two countries to identify viable investment opportunities.
The negotiations also earmarked €18 million for the electrification of West Nile, a development expected to improve access to electricity for businesses and agricultural enterprises in a region strategically positioned to trade with eastern Democratic Republic of Congo and South Sudan.
Musasizi further called on Germany to support Uganda’s efforts to mobilise financing for major infrastructure investments, particularly railway development, irrigation and electricity, through multilateral institutions such as the World Bank and African Development Bank.
The Head of the German delegation, Joachim Schmitt, who also heads the Central and East Africa Division at Germany’s Federal Ministry for Economic Cooperation and Development, said the partnership would support Uganda’s ambition to graduate from Least Developed Country (LDC) status.
“Our development cooperation will actively support this strategy, while being fully aligned to the Ugandan Vision 2040, its ’10-fold growth strategy’, including the ATMS priorities, as well as the National Development Plan IV,” Schmitt said.
He emphasised the importance of greater participation by Ugandan, German and European businesses in unlocking the country’s economic potential, creating employment and accelerating development.
Schmitt also commended Uganda’s refugee-hosting policies, reaffirming Germany’s continued focus on the West Nile sub-region and its commitment to supporting refugees and host communities.
German Ambassador to Uganda, Sigrid Sommer, said the latest commitments build on more than 60 years of bilateral cooperation that have delivered tangible development results.
“With these additional bilateral commitments, Germany remains a strong partner of Uganda and its people,” Sommer said.
She said the outcome of the negotiations provides a framework for development cooperation over the next two years, with interventions aligned to Uganda’s national development priorities and long-term strategies.
Sommer noted that Germany accounts for nearly 25% of European Union funding and reaffirmed Berlin’s commitment to working with Uganda alongside development partners, including the German development agency GIZ and development bank KfW.
She added that development cooperation, trade and investment are complementary pillars of the bilateral relationship, noting that Germany remains committed to identifying and promoting business opportunities that can strengthen commercial ties and increase investment between the two countries.
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