Loan of Dh40m will provide electricity to rural Uganda

The Abu Dhabi Fund for Development has approved a Dh40 million loan for a rural electrification project in Kalongo, Uganda, that will improve living standards in homes, schools and workplaces.

Intended to benefit 20,634 consumers over the next 10 years, the programme will also power healthcare centres, government offices, commercial, industrial and agricultural establishments.

“Energy is of great significance, given its crucial role in poverty eradication and inclusive development,” said Mohammed Saif Al Suwaidi, the fund’s director general.

“The UAE, through the Abu Dhabi Fund for Development, pursues an active policy of supporting sectors that can accelerate economic development across emerging countries. We are committed to supporting the government of Uganda in fulfilling its development objectives, through ensuring timely and adequate funding for strategically important projects.”

Mr Al Suwaidi signed the loan agreement with Ajedra Aridru, Uganda’s Minister of State for Finance, Planning and Economic Development, at the fund’s headquarters in Abu Dhabi.

The project involves civil and electrical work to install a transmission line and distribution stations.

By supporting the development of small industries, workshops and agricultural units in rural Uganda, this will curb exploitation of vegetation and cap migration to the cities.

Mr Aridru praised the UAE for its efforts and acknowledged the role the fund has played in sustainable growth in Uganda. Since 1977, the fund has extended Dh79 million in loans and government grants to improve livelihoods.