South African development finance institution, the Development Bank of Southern Africa (DBSA), announced on Tuesday that it and Togo-based pan-African private sector banking group Ecobank, acting as the Mandated Lead Arrangers, Coordinators and Bookrunners, had, in partnership with South African private-sector financial institution Rand Merchant Bank (RMB), closed a €230-million facility for the Ugandan government. Uganda would use the funding to finance its infrastructure and development budget for the 2024/25 financial year.

The facility was composed of €100-million from the DBSA and €130-million from Ecobank and RMB. It would be used to fund infrastructure developments in the areas of education, health, power, transmission, transport, and water and sanitation. Currently, only 35% of Uganda’s rural population were supplied with electricity, and healthcare facilities were inadequately resourced.  

“This transaction marks a significant milestone for DBSA as our first major syndication in East Africa,” highlighted DBSA Group Executive: Transacting Mpho Mokwele. “Offering €100-million alongside Ecobank and RMB reinforces out belief in the strength of collaboration between local, regional and development finance institutions to enable critical infrastructure across the continent.”

“This financing reflects Ecobank’s strong commitment to partnering with other African financial institutions to structure innovative and efficient funding solutions for critical infrastructure development across the continent,” stressed Ecobank Group Executive: Corporate and Investment Banking Michael Larbie. “By working alongside [development finance institutions] and other commercial lenders, we can lead the mobilisation of capital at scale and tailor solutions to enable national development. For Uganda, this facility will help unlock investments in essential sectors that directly improves lives and creates a stronger platform for growth.”

Under its Uganda Development and Infrastructure Plan 2025/26-2029/30, the Ugandan government had approved 48 priority projects. These were essential to underpin the country’s socio-economic transformation, and had a total value of €500-million. This €230-million facility would directly contribute to Uganda making progress in achieving the UN Sustainable Development Goals, particularly Goal 3 (health), Goal 4 (education), Goal 6 (clean water and sanitation), Goal 7 (affordable and clean energy), and Goal 9 (industry, innovation, and infrastructure).