BADEA strengthens cooperation with Rwanda, signs $150m funding deal with Uganda

By Inspirer correspondent.

 On the sidelines of the annual meetings of the Board of Governors of the Trade and Development Bank Group, held in Kigali on Friday, the President of the Arab Bank for Economic Development in Africa, Abdullah Khalil Al-Musaibih, met  with Rwanda’s Minister of Finance and Economic Planning, Yusuf Murangwa within the framework of strengthening strategic partnerships.

Mutisi Rusagara (left) State Minister for Resource Mobilization and Public Investment, , Abdullah Khalil Al-Musaibih who is BADEA President (middle),  Yusuf Murangwa the minister of finance and economic planning in Rwanda

Both sides discussed prospects for joint cooperation and the role of the Bank in supporting the achievement of development priorities in the Republic of Rwanda.

The Arab Bank for Economic Development in Africa (BADEA) and the Government of Uganda also signed two Facility Agreements totalling $150 million to support private sector growth.

Under these agreements, the Government of Uganda secures $million through BADEA’s Private Sector window to support the Uganda Development Bank Limited (UDB) in on-lending to key sectors of the economy, including agro-processing, infrastructure, manufacturing, health, and education.

The remaining USD 50 million is secured through BADEA’s Public Sector window, earmarked to finance micro, small and medium enterprises (MSMEs) operating in agriculture, agro-processing, industry, infrastructure, and health and education.

This initiative aligns with BADEA 2030, the Bank’s strategic framework focused on infrastructure, private sector and trade finance, SME development, agricultural value chains, and capacity building.

Abdullah Almusabeeh, BADEA President and Matia Kasaija, Minister of Finance, Planning and Economic Development of Uganda  posing for a photo after signing funding agreements.

“Today’s loan agreement with the Government of Uganda is an outstanding example of how governments can leverage BADEA’s financial instruments—spanning public and private sectors, as well as trade finance windows—to empower the private sector and advance national social and economic development agendas,” said  Abdullah Almusabeeh, BADEA President, during the signing ceremony.

Since its inception, BADEA and its sister institutions within the Arab Coordination Group have committed approximately $2.5 billion to Uganda’s development priorities, spanning agriculture, transport, energy, education, health, and water and sanitation infrastructure.

Dr Patricia Adongo Ojangole, Managing Director of Uganda Development Bank, commended BADEA and the Government of Uganda for their commitment to accelerating private sector development:“We are proud to partner with the Government of Uganda and BADEA in supporting the growth of the private sector through strategic investments. This collaboration reflects our shared commitment to fostering economic development across Uganda—particularly in critical sectors such as agriculture, health, and infrastructure. By empowering micro, small, and medium enterprises, we are not only improving livelihoods but also driving sustainable growth.”

BADEA and Uganda delegation

Hon. Matia Kasaija, Minister of Finance, Planning and Economic Development of Uganda, emphasised:

“Our partnership with BADEA has flourished over the years. I commend BADEA’s agility in responding to the Government’s development priorities. Over the last five decades, our collaboration has focused heavily on public sector investments, particularly in infrastructure. Today, BADEA is broadening its scope by channelling finance into the private sector and trade development.”

The Arab Bank for Economic Development in Africa (BADEA) is a rated multilateral development finance institution owned by 18 sovereign states, all members of the League of Arab States.

Since commencing operations in March 1975, BADEA has focused exclusively on promoting social and economic development in Sub-Saharan Africa, while fostering cooperation between the Arab and African regions through trade and investment.

Uganda Development Bank Limited (UDB) is the country’s national Development Finance Institution (DFI), mandated to accelerate socio-economic transformation through sustainable financial and non-financial interventions—both debt and equity. UDB also provides non-financial services to promote enterprise readiness and capacity building.

The Bank supports private sector projects with high potential for socio-economic impact, including job creation, increased production, tax contribution, and foreign exchange generation. These initiatives align with Uganda’s key priority sectors and national development goals.

UDB’s sectoral focus aligns with National Development Plan IV (NDP IV), prioritising Primary Agriculture, Industry (including agro-industrialisation, manufacturing, knowledge-based industries, and extractives), and Services (health, tourism and hospitality, education, science, technology, and innovation), along with Infrastructure. Agriculture, agro-industry, and manufacturing together comprise approximately 75% of the Bank’s portfolio, fully aligned with Government priorities under NDP IV and Vision 2040.