Government, Stanchart sign Shs 2.747tn infrastructure financing deal

Government of Uganda and Standard Chartered Bank Uganda have signed financing agreements worth EUR 641.1 million (Shs 2.747 trillion) to fund three major infrastructure projects aimed at supporting the country’s Ten-Fold Growth Strategy and expanding the economy to USD 500 billion by 2040.

The agreements were signed on 30 January 2025 at the Ministry of Finance, Planning and Economic Development by the Minister of Finance, Planning and Economic Development, Matia Kasaija, on behalf of the Government of Uganda, and Sanjay Rughani, chief executive officer and Head of Coverage Uganda at Standard Chartered Bank. The signing ceremony was witnessed by senior government officials, development partners, contractors, and representatives of Standard Chartered Bank.

Under the agreements, Standard Chartered Uganda will arrange and co-fund three key projects covering power transmission, water supply and sanitation, and road infrastructure. The largest facility, valued at EUR 342.5 million (approximately Shs 1.4 trillion), will finance the construction of the 400KV Karuma–Tororo double-circuit transmission line and the Ntinda substation.

The project is expected to enhance evacuation of power from the Karuma Hydropower Plant, improve reliability of electricity supply to industrial and urban centres, create jobs, and strengthen Uganda’s position as a regional energy hub. The financing has been arranged with support from the Swedish Export Credit Agency (EKN) and the Swedish Export Credit Corporation (SEK), marking EKN’s first transaction in Uganda.

A second facility of EUR 182.8 million (Shs 754.5 billion) will fund Phase II of the Strategic Towns Water Supply and Sanitation Project, covering Nakasongola District and clusters including Kamuli, Mayuge, Bugweri and Alebtong. The project aims to serve 740,000 people by 2030 through construction of water treatment plants and sanitation facilities, with the objective of improving public health and productivity. This financing has been arranged with support from the Chinese Export Credit Agency, Sinosure.

The third facility, valued at EUR 115.8 million (Shs 486 billion), will finance construction of the Karugutu–Ntoroko road (56.5km), the Rwebisengo link road (8.2km), and Ntoroko town roads (3.3km). The project is intended to support infrastructure development in the Albertine region and improve a key trade route linking Uganda to the Democratic Republic of Congo. The financing was arranged with support from the Islamic Corporation for the Insurance of Investment and Export Credit, part of the Islamic Development Bank Group.

Speaking at the signing, Kasaija said the projects would significantly support Uganda’s development agenda by improving power transmission, expanding access to clean water, and enhancing road infrastructure critical to oil development and tourism around Lake Albert. He said the investments would help reduce losses from unutilised power, improve wellbeing in project areas, and support regional trade.

Dalu Ajene, Chief Executive Officer and Head of Coverage Africa at Standard Chartered Bank, said the agreements demonstrate how governments and international financial institutions can work together to deliver complex, long-term financing for projects with lasting economic and social impact. Rughani said the bank remains committed to financing infrastructure that enhances resilience, promotes inclusive growth, and is economically viable.

The projects align with the government’s strategy to grow the economy from USD 53 billion to USD 500 billion by 2040 through targeted investment in enabling infrastructure.