European Union Announces Major Investment In Uganda’s Economy

Posted by: lukwago J in Uganda news March 7, 2024

The European Union has committed over €200 million (approx. $230 million USD) to support Uganda’s economic growth and development. The funding is part of the EU’s Global Gateway initiative, which aims to mobilize €300 billion in strategic investments around the world by 2027.

A significant portion of the EU funding for Uganda will go towards upgrading infrastructure like roads, railways, bridges and water supply systems. Improving connectivity and access to clean water is expected to boost trade and commerce both within Uganda and with other countries in the region.

The investments will also focus on expanding access to renewable energy such as solar and hydropower projects. This will enable more businesses and households to gain access to reliable and affordable electricity.

In addition to infrastructure, funding will be provided to support priority sectors identified by the Ugandan government including agriculture, tourism, healthcare, digital transformation, and education.

Hundreds of thousands of new jobs will be generated

Investments in these sectors are aimed at creating jobs, developing skills, and spurring innovation. For example, more funding for agriculture will help improve farming techniques, post-harvest storage, and access to markets. This will increase incomes for smallholder farmers across the country.

The European Union believes that by pairing physical infrastructure projects with social and economic development, hundreds of thousands of new jobs can be generated in Uganda over the coming years.

Both skilled and unskilled labor will be required to build roads, power plants, schools and hospitals. Meanwhile, a more robust agriculture sector and digitally-connected society will open up entrepreneurial opportunities.

EU Commissioner for International Partnerships Jutta Urpilainen stated that the Global Gateway initiative demonstrates the EU’s strong commitment to an equitable world recovery from the Covid-19 pandemic and to promoting sustainable development in partner countries like Uganda.

The significant allocation of funds signals the EU’s confidence in Uganda’s long term economic growth prospects.

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