Uganda

Uganda's population growth challenges the country's public water and sanitation system.

AFD supports the required investments by:

• financing drinking water distribution networks in isolated areas (in the  South-Central rural towns, and secondary cities of Mbarara and Masaka);
• supporting small sanitation infrastructures along with supply of drinking water (collective sanitation and service facilities in 30 deprived districts of Kampala);
• constructing pumping stations (2 new stations to supply the cities of Kampala and Jinja);
• increasing the production of drinking water and its supply (5-year program in Kampala, to secure access to water for the inhabitants of the city and sustainably improve the service of the National Water and Sewerage Corporation).

Uganda is one of the African countries with the lowest access rate to electricity: only 20% of the Ugandan population is connected to the national grid.

AFD funds projects of the Ugandan government and private investors in order to:

• increase the renewable energy generation capacity (Bujagali, and Muzizi hydroelectric plants).
• promote access for all to electricity (construction of 2 transmission lines and extension of the distribution network in rural areas in Southern and Western Uganda).

The Ugandan Government identified job creation and the development of the private sector as one of key priorities in its Vision 2040.

AFD thus supports:

• the housing sector by providing credit lines (Housing Finance Bank, as part of the long-term support of the bank's housing finance activity).
• the renewable energy and energy efficiency, through the Sustainable Use of Natural Resources and Energy Finance (SUNREF) program consisting of credit lines to Ugandan banks wishing to develop their portfolio of renewable energy and energy efficiency projects. Technical assistance is offered to the project developers and the banks.

AFD mobilizes various financial instruments, including the facility of the French Global Environment Facility (FFEM), to support the environment and biodiversity through:

• sustainable management of national parks (establishment of a pilot payment scheme for environmental services concerning the water resources of the Rwenzori Mountains National Park);
• setting up regulatory frameworks (compensation for damage to ecosystems and biodiversity offsets);
• sustainable management of continental aquatic ecosystems (Murchison Bay ecosystem management project);
• the Africa4Climate project: integrating climate change into water resource management, developing a climate strategy for the city of Kampala and supporting the development of Uganda's national contribution to the Paris climate agreement.