Uganda and Germany today signed bilateral agreements that will see Germany award grants worth Shs356 billion (93.5 million EUR) to Uganda in the next two years, a statement released by the Germany Embassy in Kampala said.
The grants will fund projects in energy, water, and rural development sectors, and will be disbursed by GIZ and KfW, Germany’s development bank. Germany also said it will provide funding to help Uganda “in addressing the current refugee crisis caused by the renewed outbreak of fighting in South Sudan in July this year.”
Uganda was represented by the Deputy Secretary to the Treasury, Mr. Patrick Ocailap, while the Director for East Africa in the Federal Ministry of Development Cooperation, Dr Ralf Mathias Mohs, signed for German.
Under the agreement, Shs175 billion will be allocated to rural development, with an emphasis on agriculture. On the other hand, funding for the water sector will focus on water resources management and water for production in “marginalised areas in northern Uganda, which are under additional pressure due to the rising influx of refugees from South Sudan,” according to the statement.
In the energy sector Germany said its focus will remain on implementing ongoing investment projects. The west European country is currently supporting twenty energy projects across the country, with an emphasis on projects being implemented by the private sector.
On Tuesday, Germany agreed to lend Shs285 billion (75 million EUR) to Uganda to construct two transmission lines. The lines will run from Mbale to Bulambuli (Shs152 billion) and from Mbarara to Masaka (Shs133 billion). The loan agreement was signed by the Minister of State for Planning, David Bahati, and the Germany Ambassador, Peter Blomeyer, at the Ministry of Finance, Planning and Economic Development.