Germany gives Uganda 93m euros in grants

Uganda and Germany have signed a cooperation agreement to support Uganda’s rural development initiatives.

Under the agreement, signed on October, 4,, 2016, Germany committed itself to give Uganda 93.5m Euros in grants for the next two years. The grants are expected to fund the key priority areas of energy, water and rural development as Uganda seeks to further reduce the levels of poverty. The programs will be implemented by the German institutions, GIZ and KfW.

The minister of state for Planning, David Bahati, and the ambassador of the Federal Republic of Germany, Dr Peter Blomeyer, signed the agreement recently at the ministry of Finance, Planning and Economic Development.

A press statement noted:“Germany committed additional funding to assist Uganda in addressing the current refugee crisis caused by the renewed outbreak of fighting in South Sudan in July this year. An important outcome of these negotiations was the inclusion of cooperation programs in the rural development area.”

Germany will invest a total of 46m Euros in rural development. This financial intervention is expected to spur the agricultural sector by opening up new markets.

In the water sector, both governments agreed to refocus activities on the management of the growing pressures on water resources and increase production in the face of the long droughts brought about by the impact of climate change.

The support towards the water sector will mainly focus on marginalized areas in northern Uganda, which are under additional pressure due to the rising influx of refugees from South Sudan.

In the energy sector, GIZ will further support the execution of ongoing investment – about 20 projects with a total value of 300m Euros – during the coming two years.

Many of these projects are under the donor-supported programme of GETFiT, where energy plants of less than 20MW are being constructed in different parts of the country.

During the negotiations, a financial cooperation agreement, totalling 75m Euros in loans, was signed for two transmission lines – one from Mbale to Bulambuli (40m Euros) and one from Mbarara to Masaka (35m Euros). Less than 20 per cent of Ugandans have access to electricity.

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