Uganda Secures Over $2 Billion from World Bank After Loan Freeze

The World Bank has announced over $2 billion in new concessional financing for Uganda over the next three fiscal years, marking the end of a nearly two-year suspension of funding. The decision follows renewed engagement with the East African nation after loans were halted over Uganda’s controversial anti-LGBTQ law.

According to Ramathan Ggoobi, Permanent Secretary at the Ministry of Finance, the funds will be directed toward key sectors including transportation, energy, ICT, and agriculture — all central to Uganda’s development agenda. The financing aims to reignite economic growth and strengthen infrastructure as the country prepares for crude oil production set to begin in mid-2026, projected to push GDP growth into double digits by the 2026/27 fiscal year.

Uganda is also in talks with the IMF for a new Extended Credit Facility worth around $1 billion, following the expiration of its previous program. Together, these engagements reflect a broader trend across Africa — nations reconnecting with global financial institutions to build stability and unlock growth.

For Uganda and the continent at large, this renewed partnership underscores a key reality: access to global capital must translate into local impact. If well managed, the $2 billion injection could power sustainable transformation in one of Africa’s most promising young economies.