In Summary: Germany has committed €50 million in grants to Uganda to support water, electricity, agribusiness, local economic development and refugee-hosting communities. The commitment was announced after two days of Government-to-Government negotiations in Kampala, with 70% of the funding earmarked for water and electricity projects.
Kampala, Uganda — Germany has committed €50 million in grants to Uganda to support development projects in water, electricity, agribusiness, local economic development and refugee-hosting communities, following the conclusion of two days of Government-to-Government negotiations in Kampala on November 3, 2026.
The commitment comprises €30 million in Financial Cooperation and €20 million in Technical Cooperation, reinforcing a bilateral partnership spanning more than 60 years.
Of the new support, €35 million, representing 70% of the commitment, will go towards water and electricity, while €10 million, equivalent to 20%, will support agribusiness and local economies. The remaining €5 million will support refugee participation and host communities, among other areas.
Finance Minister Henry Musasizi said the interventions are aligned with Uganda’s National Development Plan IV and Tenfold Growth Strategy, which aims to grow the economy to US$500 billion by 2040 through Agro-industrialisation, Tourism, Mineral Development, and Science, Technology and Innovation (ATMS).
“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.
He welcomed the €35 million allocation to water and electricity, describing the sectors as important enablers of the ATMS agenda. The minister also called on German investors to explore opportunities in production, processing, exports and skilled job creation, proposing structured engagements to identify bankable investment opportunities.
The negotiations also earmarked €18 million for the electrification of West Nile, which is expected to benefit enterprises and farms in a region that trades with eastern Democratic Republic of the Congo and South Sudan.
Musasizi further asked Germany to support Uganda’s efforts to mobilise financing for railway development, irrigation and electricity through the World Bank, African Development Bank and other multilateral institutions.
The Head of the German Delegation, Joachim Schmitt, who also heads the Central and East Africa Division at Germany’s Federal Ministry for Economic Cooperation and Development, said the cooperation would support Uganda’s ambition to graduate from Least Developed Country (LDC) status.
“Our development cooperation will actively support this strategy, while being fully aligned to the Ugandan Vision 2040, its ’10th-fold growth strategy’, including the ATMS priorities, as well as the ‘National Development Plan IV’,” Schmitt said.
He emphasised the need for increased participation of Ugandan, German and European enterprises in unlocking economic potential, creating jobs and supporting Uganda’s development.
Schmitt also commended Uganda’s refugee-hosting policies, reaffirming Germany’s continued focus on West Nile and its support for refugees and host communities.
German Ambassador to Uganda, H.E. Sigrid Sommer, said the new commitments build on more than six decades of cooperation that have delivered tangible results. “With these additional bilateral commitments, Germany remains a strong partner of Uganda and its people,” Sommer said.
She said the outcome of the negotiations provides a basis for development cooperation over the next two years, aligned with Uganda’s strategies and priorities.
Sommer noted that Germany accounts for nearly 25% of EU funding and reaffirmed her country’s commitment to supporting Uganda alongside partners, including GIZ and KfW.
She emphasised that development cooperation, trade and investment are complementary parts of the partnership, adding that Germany remains committed to presenting business opportunities to enhance trade and investment with Uganda.
Uganda and Germany have maintained bilateral development cooperation for more than six decades, focusing on areas including infrastructure, energy, water, agriculture, economic development and support for refugee-hosting communities.
The latest commitment is linked to Uganda’s National Development Plan IV and its longer-term Vision 2040 ambitions. The ATMS framework identifies agro-industrialisation, tourism, mineral development and science, technology and innovation as priority areas for accelerating economic growth.
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