Germany has committed €50 million (about Shs239 billion) in grants to Uganda to support development projects targeting water supply, electricity, agribusiness, local economic development and refugee-hosting communities.

The commitment was announced following the conclusion of two days of Government-to-Government negotiations between Uganda and Germany in Kampala on November 3, 2026, strengthening a bilateral development partnership that spans more than six decades.

The funding package comprises €30 million in Financial Cooperation and €20 million in Technical Cooperation, providing a framework for the two countries' development cooperation over the next two years.

According to the agreed allocations, €35 million, representing 70 per cent of the total commitment, will be directed towards water and electricity interventions. Another €10 million, equivalent to 20 per cent, will support agribusiness and local economic development, while the remaining €5 million will go towards refugee participation, host communities and other interventions.

Finance Minister Henry Musasizi said the support is aligned with Uganda's National Development Plan IV (NDP IV), Vision 2040 and the government's Tenfold Growth Strategy, which seeks to expand the country's economy to US$500 billion by 2040.

The strategy prioritises four areas known as ATMS: Agro-Industrialisation, Tourism, Minerals, and Science, Technology and Innovation.

Musasizi welcomed the funding, particularly the allocation towards water and electricity, describing the two sectors as important enablers of Uganda's economic transformation agenda.

"We appreciate this support. It comes at a time when resources for overseas development support are under pressure across Europe given the ongoing global challenges," Musasizi said.

The minister also called on German investors to explore opportunities in Uganda's production, processing and export sectors, emphasising the need for investments that can create skilled employment and expand the country's productive capacity.

He proposed structured engagements between Ugandan and German businesses to identify bankable investment opportunities and strengthen commercial relations between the two countries.

The negotiations also earmarked €18 million for the electrification of the West Nile sub-region, an intervention expected to benefit businesses, agricultural enterprises and farms.

West Nile occupies an important regional trading position, with commercial links to eastern Democratic Republic of Congo and South Sudan. Improved electricity access is expected to support productive activities and economic development in the region.

Musasizi further asked Germany to support Uganda's efforts to mobilise additional financing for major infrastructure projects, particularly railway development, irrigation and electricity expansion, through multilateral institutions such as the World Bank and the African Development Bank.

Leading the German delegation, Joachim Schmitt, Head of the Central and East Africa Division at Germany's Federal Ministry for Economic Cooperation and Development, said the partnership would support Uganda's ambition to graduate from Least Developed Country (LDC) status.

Schmitt said Germany's development cooperation would remain aligned with Uganda's Vision 2040, National Development Plan IV and Tenfold Growth Strategy, including the country's ATMS priorities.

He emphasised the importance of increased participation by Ugandan, German and European enterprises in unlocking economic opportunities, creating employment and supporting Uganda's development ambitions.

Schmitt also commended Uganda's refugee-hosting policies and reaffirmed Germany's continued focus on West Nile, including support for refugees and communities hosting them.

German Ambassador to Uganda, Sigrid Sommer, said the latest commitments build on more than 60 years of bilateral cooperation that have delivered development results in different sectors.

"With these additional bilateral commitments, Germany remains a strong partner of Uganda and its people," Sommer said.

She explained that the outcome of the negotiations provides a basis for development cooperation between the two countries over the next two years, with interventions aligned with Uganda's national development strategies and priorities.

Sommer also noted that Germany accounts for nearly 25 per cent of European Union funding and reaffirmed her country's commitment to supporting Uganda through development partners, including the German development agency GIZ and the development bank KfW.

She stressed that development cooperation, trade and investment are complementary elements of the Uganda-Germany partnership, adding that Germany remains committed to identifying and presenting business opportunities that can strengthen trade and attract more investment between the two countries.

The latest commitment comes as Uganda seeks to mobilise development financing, expand infrastructure and attract private investment to support its economic transformation ambitions.

For both countries, the new cooperation framework is expected to strengthen collaboration in infrastructure, productive sectors, regional economic development and support for refugee-hosting communities.