• IsDB Group pledges $800M for Uganda’s climate resilience and human capital

• $500M from IsDB, $150M each from ICD and ITFC under new engagement framework

• Funds to support infrastructure, food security, and skills development

Uganda has secured an $800 million national engagement framework with the Islamic Development Bank (IsDB) Group, aimed at buttressing economic resilience and promoting sustainable human development over the 2025–2027 period. This information is according to a tweet from the Ugandan Ministry of Finance on Wednesday, May 21, 2025.

Out of this package, $500 million will be provided by the IsDB. The Islamic Corporation for the Development of the Private Sector (ICD) and the International Islamic Trade Finance Corporation (ITFC) will each contribute $150 million.

The national engagement framework, backed by this resource mobilization, will primarily be used to build climate-resilient infrastructure, particularly in the transport and energy sectors. It also aims to spur economic transformation and bolster food security by enhancing agricultural exports.

These resources will also contribute to inclusive growth by strengthening human capital, improving health, and fostering skills development in sectors like agriculture, hospitality, healthcare, ICT, and oil.

This financing agreement was reached at the Annual Assembly of the Islamic Development Bank Group held in Algeria from May 19 to 22, 2025. On this occasion, the IsDB granted financing of $665.75 million to seven African member countries.

This development comes as Uganda’s National Development Plan IV (NDP IV), covering 2025–2030 and envisaged as an ambitious roadmap to thrust Uganda towards sustainable socio-economic development, encounters some stumbling blocks. According to the Civil Society Budget Advocacy Group (CSBAG), the NDP IV faces budget constraints, including underfunding of essential programs and disparities in resource allocation.

It is noteworthy that during the Annual Assembly, the Islamic Development Bank approved over $1.32 billion in financing to boost inclusive growth, climate resilience, and economic opportunities in its member countries.