A mission to the Pearl of Africa

Located in the east of the continent and richly endowed with natural beauty Uganda has earned itself the moniker the “Pearl of Africa”. But the country not only boasts spectacular landscapes and thriving wildlife, it is also making serious efforts to strengthen its economy and accelerate development. The OPEC Fund has been a long-standing partner and a visit by President Abdulhamid Alkhalifa in February provided a welcome opportunity to reaffirm support and deepen cooperation. 

Uganda’s economy is dominated by agriculture, industry and services. It has bounced back from recent external shocks and recorded 5.3 percent growth in 2023 compared to 4.7 percent the year before, according to the World Bank. Strong economic growth is needed to sustain a rapidly growing population and reduce poverty. 

The OPEC Fund approved its first loan for Uganda in its first year of operations in 1976 and to date has financed 21 projects for almost US$290 million. Aligned with the country’s needs they include, for example, support for infrastructure development, the financial sector, agriculture, education and healthcare. 

The visit of the OPEC Fund delegation was crowned by the signing of a US$30 million loan financing the upgrade of the Katine-Ochero road, a key infrastructure project. “Better, faster and safer transport connections will contribute significantly to the socio-economic development and integration of Uganda’s center-east region and support your efforts to boost prosperity,” President Alkhalifa said. 

The OPEC Fund is co-financing the construction of a 69.3 km two-lane road, including earth works, pavement and drainage works together with the Islamic Development Bank. The road connects rural areas in the east of Uganda and crosses pasture and woodland. The upgrade of the existing gravel road will contribute significantly to the economic prosperity of the region, assist better administration, and lower travel and transportation costs by reducing vehicle operating costs. 

Touching on another key part of the OPEC Fund’s activities in Uganda, the delegation which also included Regional Director Khaled Al-Zayer and Senior Country Manager Hatem El-Bakkali, also visited the Kayunga General Hospital. 

Located in the northeast of the country the facility was rehabilitated and upgraded into a regional referral hospital with a US$15 million loan. Today it has a total bed capacity of 300 and serves five districts with a population of more than 2.5 million. 

A meeting with the Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu, provided the opportunity to discuss opportunities for rolling out the OPEC Fund’s Clean Cooking Initiative in Uganda. The use of hazardous and polluting cooking methods results in 3.7 million deaths annually worldwide and has grave consequences for the environment. 

Together with partner organizations the OPEC Fund is offering programs to provide access to clean cooking. The initiative, launched in 2022, has three key components: 

• Clean cooking seeks to introduce healthy and affordable alternatives for preparing meals 
• Reforestation aims to remedy the ecological damage caused by polluting fuels 
• Women empowerment addresses the massive household burdens often placed on women’s shoulders. 

A first pilot project is under implementation in Madagascar, while Uganda – together with a group of neighboring African countries – is seen as a key country for clean cooking given the continent’s needs and the urgency of the issue.