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Uganda, South Korea sign Shs1.9 trillion deal for infrastructure loan
Uganda's Minister of Finance, Matia Kasaija and South Korean Minister of Foreign Affairs, Cho Tae-yul sign the Framework Agreement for a $500m loan from Korea EXIM Bank, to finance the construction of infrastructure projects in Uganda. PHOTO/ MINISTRY OF FOREIGN AFFAIRS
What you need to know:
- The new credit will likely add to Uganda's growing debt problems that prompted Moody's last month to downgrade its country rating, citing "diminished debt affordability."
- South Korea's EXIM Bank will provide the loan, the ministry said in a post on X
Uganda has signed an agreement with South Korea for a $500 million (about Shs1.9 trillion) loan to help finance infrastructure building in the East African country, Uganda's finance ministry said on Thursday.
South Korea's EXIM Bank will provide the loan, the ministry said in a post on X. It didn't provide details on what kind of infrastructure the money would fund but Uganda mostly borrows for road and energy projects.
The new credit will likely add to Uganda's growing debt problems that prompted Moody's last month to downgrade its country rating, citing "diminished debt affordability."
As of Dec. 31, Uganda's public debt stood at $24.6 billion, fuelled by infrastructure spending.
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The agreement was signed by Uganda's finance minister, Matia Kasaija and South Korea's Minister of Foreign Affairs Cho Tae-Yul on the sidelines of the Korea-Africa summit in Seoul.
