On July 31, the Minister of Finance and Economic Planning, Yusuf Murangwa, welcomed Abdullah Kh. Almusabeeh, President of the Arab Bank for Economic Development in Africa (BADEA), for high-level discussions focused on enhancing strategic collaboration. BADEA, a multilateral development finance institution owned by 18 member states of the League of Arab States, has been active since 1975 and is essential in funding development projects throughout Africa. ALSO READ: Rwanda and BADEA sign Rwf11bn agreement to build Nyagatare-Rukomo road In Kigali, the BADEA team met with officials from the Ministry of Finance shortly after the signing of two facility agreements between the bank and the Government of Uganda. These agreements, valued at $150 million, are designed to strengthen Uganda’s private sector through both public and private financing. The deal was finalized on the sidelines of the 41st Board of Governors meeting of the Trade and Development Bank Group (TDB Group), which took place in Kigali. “BADEA has played a vital role in financing important infrastructure projects in energy, transport, and water and sanitation, supporting Rwanda's sustainable growth,” stated the Ministry of Finance and Economic Planning (MINECOFIN) in a statement. One of the key joint initiatives is Kigali Innovation City (KIC), a major smart city project being developed by the Government of Rwanda in partnership with Africa50 and BADEA. Known as "The Digital Heart of Africa," this 61-hectare project is expected to generate $2 billion in economic value, $150 million in annual ICT exports, and attract over $300 million in foreign direct investment (FDI). ALSO READ: Five things to know about Kigali Innovation City BADEA has also pledged $18 million for the rehabilitation of the 36-kilometre Nyacyonga–Mukoto road, which will link major national roads in the City of Kigali and Northern Province. The road starts at the Kigali–Gatuna junction in Gasabo District and ends at the Kigali–Musanze junction in Rulindo District. The bank’s financial influence extends beyond Rwanda. During the TDB Group meeting, BADEA announced $150 million in new support for Uganda’s private sector. Out of this, $100 million will be directed through BADEA’s Private Sector Window to the Uganda Development Bank Limited (UDB), for lending to key sectors such as agro-processing, infrastructure, manufacturing, health, and education. The remaining $50 million, secured under the Public Sector Window, will fund micro, small, and medium enterprises (MSMEs) in agriculture, agro-industry, infrastructure, and social services. “Today’s loan agreement with the Government of Uganda exemplifies how governments can use BADEA’s financial tools to empower the private sector and drive social and economic progress,” said Almusabeeh. Since its establishment, BADEA has committed approximately $2.5 billion to Uganda’s development goals, with investments covering agriculture, transport, energy, education, health, and water and sanitation. Uganda’s Finance Minister Matia Kasaija praised the growing partnership: “Over the past five decades, our cooperation centered on public sector infrastructure. Now, BADEA is expanding development finance to support private sector and trade-driven growth.” Dr. Patricia Adongo Ojangole, Managing Director of UDB, noted that the deal represents a significant step toward inclusive development. “This collaboration shows our commitment to supporting crucial sectors like agriculture, health, and infrastructure. By empowering MSMEs, we are not only improving lives but also promoting long-term, sustainable economic growth,” she added. Agriculture, agro-industry, and manufacturing make up approximately 75% of UDB’s lending portfolio.
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