In Summary: Uganda and Italy have signed a new development cooperation framework, with Italy proposing a €120 million concessional loan to support Uganda’s coffee sector and investments in greener cities, including waste management and modern food markets in Kampala and Hoima.
Entebbe, Uganda — Uganda and Italy have signed a new development cooperation framework agreement aimed at strengthening bilateral relations and expanding investments in agriculture, coffee processing, urban development, health, technology and other strategic sectors.
The agreement was signed by Finance Minister Henry Musasizi on behalf of the Government of Uganda and Ambassador Riccardo Guariglia, Secretary General of Italy’s Ministry of Foreign Affairs and International Cooperation, at State House, Entebbe.
President Yoweri Museveni witnessed the signing ceremony, welcoming the Italian delegation and commending Italy for its continued support to Uganda. Prime Minister Robinah Nabbanja and other ministers also attended the event.
Under the proposed cooperation, Italy has indicated plans for a €120 million concessional loan to support Uganda’s coffee sector and prepare investments under the Green Cities initiative in Kampala and Hoima, particularly in waste management and the improvement of food markets.
Uganda’s existing development cooperation with Italy comprises approximately €35.1 million in ongoing projects, while a further €19.7 million in proposed initiatives is under preparation.
The existing support includes €10 million for health infrastructure in Karamoja and €12.75 million under the PRISMA programme, which supports maternal, child and cancer care.
The remaining €12.35 million supports skills development, agriculture, environmental protection, cultural heritage, private-sector development, and refugees and host communities.
The proposed project pipeline is expected to expand cooperation into agricultural mechanisation, coffee and cocoa value chains, tourism, science and technology, water and greener cities.
The newly signed framework establishes the arrangements through which the two governments will advance their development cooperation, including their respective responsibilities, project implementation procedures and accountability for resources.
Musasizi said the partnership would be aligned with Uganda’s Tenfold Growth Strategy, the Fourth National Development Plan and the country’s ATMS priorities.
“Our priority is to ensure that this partnership advances the Tenfold Growth Strategy, the Fourth National Development Plan and our ATMS priorities,” Musasizi said, adding that the opportunities available give practical meaning to Uganda’s ambition.
On coffee, the minister said Uganda wanted increased production to be accompanied by greater processing, improved quality and stronger access to markets so that farmers and businesses could retain more value within the country.
“In the coffee sector, Uganda wants higher productivity to be matched by greater processing, better quality and stronger access to markets, allowing farmers and businesses to retain more value in Uganda,” he said.
He added that improved waste management and modern food markets in urban centres would contribute to public health, reduce losses and create opportunities for local enterprises.
“In our cities, improved waste management and modern food markets will support public health, reduce losses and create opportunities for local enterprises. Italy’s experience in manufacturing, agricultural processing and enterprise development can help us achieve these objectives,” Musasizi said.
The minister also welcomed stronger bilateral trade and increased Italian investment, particularly ventures that bring technology, skills and production capacity into Uganda.
He said partnerships between universities, research institutions and businesses should help translate innovation into commercially viable products and employment opportunities.
Musasizi said the Ministry of Finance, Planning and Economic Development would work with relevant sectors and Italian partners to develop viable projects, agree on favourable financing terms and ensure sustainable operation and maintenance of the investments.
“Your Excellency, I thank you for your guidance and leadership. I warmly welcome Ambassador Guariglia and his delegation and thank the Italian Embassy and all the teams whose work has brought this Agreement to signature,” he said.
Ambassador Guariglia reaffirmed Italy’s commitment to the cooperation framework, signalling continued engagement between the two countries in advancing their development priorities.
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