Germany has committed €50 million in grants to support Uganda’s development priorities, with the bulk of the funding targeting water and electricity infrastructure.
The commitment followed two days of Government-to-Government negotiations in Kampala, which concluded on November 3, 2026. The funding will also support agribusiness, local economic development, refugees and communities hosting them.
The package comprises €30 million in Financial Cooperation and €20 million in Technical Cooperation, building on more than six decades of bilateral relations between the two countries.
Under the new agreement, €35 million, representing 70 per cent of the total funding, will go towards water and electricity interventions. Another €10 million will support agribusiness and local economies, while the remaining €5 million will finance refugee participation and host communities, among other areas.
Finance Minister Henry Musasizi said the support aligns with Uganda’s National Development Plan IV and Tenfold Growth Strategy, which seeks to expand the economy to US$500 billion by 2040.
The strategy prioritises Agro-Industrialisation, Tourism, Minerals, and Science, Technology and Innovation (ATMS).
“We appreciate this support. It comes at a time when resources for overseas development support are under pressure across Europe given the on-going global challenges,” Musasizi said.
He welcomed the €35 million allocation to water and electricity, describing the two sectors as critical enablers of Uganda’s ATMS agenda.
Musasizi also urged German investors to explore opportunities in production, processing and exports, as well as skilled job creation. He proposed structured engagements to identify bankable investment opportunities in Uganda.
The negotiations further earmarked €18 million for the electrification of West Nile. The intervention is expected to benefit businesses and agricultural enterprises in the region, which trades with eastern Democratic Republic of the Congo and South Sudan.
Musasizi also called on Germany to support Uganda’s efforts to mobilise financing for railway development, irrigation and electricity projects through multilateral institutions, including the World Bank and African Development Bank.
Joachim Schmitt, head of the German delegation and the Central and East Africa Division at Germany’s Federal Ministry for Economic Cooperation and Development, said the partnership would support Uganda’s ambition to graduate from Least Developed Country (LDC) status.
“Our development cooperation will actively support this strategy, while being fully aligned to the Ugandan Vision 2040, its '10-fold growth strategy', including the ATMS priorities, as well as the 'National Development Plan IV',” Schmitt said.
He emphasised the importance of greater participation by Ugandan, German and European businesses in unlocking economic opportunities, creating jobs and supporting Uganda’s development.
Schmitt also commended Uganda’s refugee-hosting policies and reaffirmed Germany’s continued focus on West Nile, including support for refugees and host communities.
German Ambassador to Uganda, Sigrid Sommer, said the latest commitments build on more than 60 years of cooperation that have delivered tangible results.
“With these additional bilateral commitments, Germany remains a strong partner of Uganda and its people,” Sommer said.
She said the outcome of the negotiations provides a framework for development cooperation over the next two years, aligned with Uganda’s national strategies and priorities.
Sommer noted that Germany accounts for nearly 25 per cent of European Union funding and reaffirmed her country’s commitment to supporting Uganda through partnerships involving institutions such as GIZ and KfW.
She added that development cooperation, trade and investment are complementary pillars of the bilateral relationship, saying Germany remains committed to presenting business opportunities that can strengthen trade and investment between the two countries.
newsEAC Moves to Cut US Dollar Dependence Through Regional Payment System
East African countries are working to expand cross-border payments in local currencies, but gaps in regional currency liquidity continue to force traders to rely on the US dollar.
