Uganda-EU sign $97.5m deal to fund green economy uptake

19 / 03 / 2020

By The EastAfrican - -

Uganda has signed an additional three grant financing agreements worth €85.9 million ($97.5 million) with the European Union.

Finance Minister Matia Kasaija said the EU grants will support three projects and programmes that are meant to improve the standards of Uganda’s products, and see the country qualify for and sustain its exports to Europe.

Mr Kasaija said the bulk of the cash — about €45 million ($50 million) — will fund the inclusive green economy uptake programme, which involves developing innovative products and projects that reduce environmental risks — a key benchmark for gaining access to the EU market.

The green economy uptake programme covers climate-smart agriculture, green cities, eco-tourism, scaling of renewable energy investments that target off-grid and reduction of waste projects, as well as liquefied petroleum gas (LPG) for households and industry, according to EU ambassador Attilio Pacifici, who signed on behalf of the bloc.

The signing took place at the end of the first Uganda-Europe Business Forum held at Speke Resort Munyonyo, in Kampala on March 9-10.

Besides the grant financing agreements that will benefit Uganda in the short to medium-term, the country is also expected to record foreign direct investments worth €646 million ($733.3 million) that EU firms “are planning to invest over the next five years” according to Mr Pacifici.