Uganda Secures UGX350bn in Grants from Germany

1866 Views Kampala, Uganda

In short
The German head of Delegation Dr Ralf Mathias Mohs states that they decided to support Uganda mostly in Agriculture because it is the countries backbone,adding that this time the focus is on rural areas.

Uganda has secured EUR 93.5 million (349 billion Shillings) in grants from the German government for the development of priority areas guiding Uganda's development.  The sectors include Energy, Water, agriculture and Rural Development.

The grant agreement signed this afternoon follows a successfully concluded negotiation between the Government of Uganda and Germany for the past two days. The negotiation aimed to agree on the development cooperation programs for the next two years.

The government agreed that emphasis is needed to boost Uganda's agricultural sector which provides huge potential for promotion of employment and income generation. The sector will receive an investment of EUROs 40 million (150 billion Shillings) while 46 million (172 billion Shillings) will be spent on Rural Development programs.

In the water sector both governments agreed to refocus activities on water resources management and water for production.

The grant was signed by the German head of Delegation Dr Ralf Mathias Mohs and Uganda's Deputy Secretary to the Treasury Patrick Ocailap at the Ministry of Finance offices in Kampala today. Dr Ralf said that the intention of the support is to see the rural community reached and developed.
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In the energy sector, the focus of the German development cooperation will lie on implementation of ongoing investment projects.

Current initiatives consisting of almost 20 projects with a total value of EUR 300 million (1,127,640,000,000), concentrate on energy production, access to the energy networks and distribution including the transmission to regional electricity networks.
During the negotiations a financial cooperation agreement on a total amount of EUR 75 million (282 billion Shillings) in loans for two transmission lines was signed: one from Mbale to Bulambuli EUR 40 million (150 billion Shillings) and one from Mbarara to Masaka EUR 35 million (132 billion Shillings).
Ocailap says Government will closely monitor to eliminate any loopholes for corruption and mismanagement. 

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

These funds were made available in addition to the support committed during the last government negotiations in 2013. The agreement was signed by the Minister of State for Planning, Hon David Bahati, and the Ambassador of the Federal Republic of Germany, Dr Peter Blomeyer, at the Ministry of Finance, Planning and Economic Development.

Uganda records a steady growth of its economy by 5 percent annually which is mostly attributed to extensive infrastructure programs and improved policies on financial management.  However, about 20 percent of the Ugandan population still lives below the poverty line despite these improvements.

The exponential population growth and challenges with the public finance management systems are amongst the biggest obstacles for development in Uganda. Additional projects in the area of Governance and Civil Society are meant to address these issues with greater focus in the coming years.


About the author

Alex Otto
“Journalism that changes lives is my goal,” Alex Otto has said on more than one occasion. That is his career’s guiding principle. Has been since he was a radio journalist in the northern Ugandan town of Gulu in 2009.

Otto passionately believes his journalism should bring to the fore the voices of the voiceless like the shooting victims of Apaa. Otto tries in his journalism to ask tough questions to those in positions of authority.

Based in the Kampala bureau, Otto is especially interested in covering agriculture, politics, education, human rights, crime, environment and business. He has reported intensively on the post-conflict situation in northern Uganda.

A URN staff member since 2014, Otto previously worked with The Observer Newspaper from 2012 to 2013 and later the Institute for War and Peace Reporting IWPR based in Gulu.

He was the URN Gulu bureau chief 2014-2016.