Uganda has signed a $500 million loan agreement with South Korea to support infrastructure development, Uganda’s finance ministry announced on Thursday.
The loan will be provided by South Korea’s EXIM Bank, the ministry said in a post on X. Specific details about the funded projects were not disclosed, but Uganda typically allocates such funds to road and energy infrastructure.
This new loan is expected to exacerbate Uganda’s debt issues, which led Moody’s to downgrade the country’s rating last month due to “diminished debt affordability.”
As of December 31, Uganda’s public debt stood at $24.6 billion, driven largely by infrastructure investments.
The agreement was signed by Uganda’s finance minister, Matia Kasaija, and South Korea’s Minister of Foreign Affairs, Cho Tae-Yul, during the Korea-Africa summit in Seoul.
