Uganda has announced plans to borrow $358 million from regional and private lenders to support major infrastructure and energy projects, including a power grid interconnection with South Sudan. According to junior finance minister Henry Musasizi, the financing will come from the African Development Fund, the Arab Bank for Development in Africa, and Standard Chartered Bank. The proposal was presented to parliament, where Deputy Speaker Thomas Tayebwa referred it to a committee of ruling and opposition lawmakers for review before a final vote.
Beyond the cross-border electricity project, the loan will also fund the construction of a road linking Uganda’s northwest region to the Democratic Republic of Congo, as well as initiatives to expand access to clean water. These projects are part of broader efforts to enhance regional integration and improve domestic infrastructure.
Uganda, which recently achieved surplus power generation after commissioning a $1.7 billion Chinese-financed hydropower dam, is now seeking to capitalize on its excess electricity by exporting to neighboring South Sudan. Discussions with Chinese company Sinohydro are already underway to develop the 138-kilometer high-voltage transmission line. The project will also include the expansion of two existing substations and the construction of a new one, aimed at boosting energy trade and strengthening regional connectivity.
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