Uganda

Uganda is a landlocked country in East Africa, it has experienced steady growth for the past 10 years and its poverty rate has significantly decreased. However, the country must create jobs and build quality infrastructure to meet high population growth and the need to diversify its economy, while facing the challenges of climate change. AFD supports the country in these priority areas.
Clean-up at Gaba station, Uganda
AFD and Uganda: supporting inclusive, job-creating and environmentally-friendly growth
Clean-up at Gaba station, Uganda

Increasing the production and distribution of drinking water

Beneficiaries of new drinking water connections, Uganda

Increasing the production and distribution of drinking water

Uganda's population growth is challenging the country's public water and sanitation service.

AFD is supporting the investments needed to expand the capacity of production, storage and distribution of drinking water and sanitation services.
 
Since 1999, AFD has intervened six times in the water and sanitation sector in Uganda. We have financed:

  • Drinking water supply in rural towns in the south-central part of the country. From drilling to the fountain, nine fully equipped distribution networks have been installed in these isolated areas to increase distribution and lower the cost of access.
  • Collective sewerage and sanitation facilities in the eastern districts of Kampala, to provide disadvantaged neighborhoods with small sanitary facilities and supply them with drinking water.
  • Construction of 2 new pumping stations to supply the cities of Kampala and Jinja.
  • The vast water and sanitation project in Kampala. This program aims to secure access to water for residents and to sustainably improve the NWSC service.
  • Two other projects for the secondary towns of Mbarara and Masaka as well as an extension of the Kampala water and sanitation project to meet the needs of the population by 2024.

Supporting the production and distribution of renewable energy

Hydroelectric dam, Uganda

Supporting the production and distribution of renewable energy

Uganda is one of the African countries with the lowest electricity consumption per capita. Only 20% of the Ugandan population has access to the electricity distribution network.

AFD is financing the Ugandan government and private investors to develop new electricity production and distribution infrastructures in order to meet the strong national demand and enable the country's development.

Our funding supports the three main axes of Uganda's energy policy: increasing the production of renewable energy, improving the distribution of energy available in the territory, promoting access for all to electricity.

To raise the national production capacity beyond the consumption peak, we participated in the financing of the Bujagali hydroelectric plant and the construction of the future Muzizi power station.

We also contribute to the development of the electricity grid through 3 projects: the construction of 2 high voltage lines and the general extension of the network in the rural areas of the western part of the country.

 

Promoting the private sector

Fine spinners, a Cotton processing plant, in Ouganda

Promoting the private sector

In order to support housing financing activity, AFD opened a line of credit at Housing Finance Bank.

Through the Sustainable Use of Natural Resources and Energy Financing (SUNREF) program, AFD offers lines of credit to Ugandan banks wishing to develop their project portfolio in the fields of renewable energy and energy efficiency. Technical assistance is provided to project promoters and the banks financing them.

Proparco also deploys private sector financing instruments (equity, direct loans or intermediation) in the renewable energy, SME funding, tourism and health sectors.

Protecting and enhancing the natural heritage

Chameleon in the Rwenzori Park, Uganda

Protecting and enhancing the natural heritage

To support the environment and biodiversity in Uganda, AFD mobilizes various financial instruments, including funding facility from the French Global Environment Facility (FFEM),


Several FFEM financings have been granted since 2014:

  • The long-term funding of the Rwenzori Mountains National Park aims at setting up a pilot payment scheme for environmental services around water resources (project implemented by WWF France and its Ugandan counterpart).
  • Establishment of the regulatory framework for compensation for damage to ecosystems and biodiversity (project implemented by the NGO Wildlife Conservation Society).
  • Long-term management of continental aquatic ecosystems in Murchison Bay, Lake Victoria (implemented by the Institute of Ecology and Environmental Sciences, Paris).
  • Africa4Climate focused on integrating climate change into water resource management at a watershed level, developing a climate strategy for the city of Kampala, as well as the nationally determined contribution (NDC) of Uganda to the Paris Climate Agreement.
710
million euros committed
500,000
beneficiaries have access to water in Kampala
2800
km of medium and low voltage power lines

Uganda is a landlocked country in East Africa and has 38 million inhabitants. Its economy is essentially based on agriculture although industrial fabric and services are dynamic.


The poverty rate has significantly dropped over the last 20 years, but still affects one-third of the population. The population growth rate is one of the highest in the world, with about six children per woman, and nearly 400,000 young people entering the work force each year.
Uganda shows a strong economic performance, with a steady growth of about 6% per year over the past decade and the government is showing a willingness to invest in infrastructure development, agriculture, tourism, as well as oil and gas, and the development of human capital.


However, Uganda faces two major challenges: population growth and its opportunities for urbanization, job creation and added value, as well as resilience to climate change requiring the development of sustainable development strategies.


To meet the structural needs of the Ugandan economy, AFD intervenes in the areas of infrastructure (drinking water / sanitation and energy), support to the private sector, as well as for the preservation and enhancement of natural resources.


AFD has been a partner of the country since 1993 through its subsidiary: Proparco. Acting from the Nairobi regional agency since 1997, we opened an office in Kampala in 2009. Funding from the French Global Environment Facility (FFEM) is also available for the preservation and sustainable management of natural resources.

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