Uganda has signed a $500 million loan agreement with South Korea, to help finance infrastructure building in the African country, according to Uganda’s finance ministry.
The agreement was signed by Uganda’s finance minister, Matia Kasaija and South Korea’s Minister of Foreign Affairs Cho Tae-Yul on the sidelines of the Korea-Africa summit in Seoul.
The ministry said in a post on X, that the loan will be provided by South Korea’s EXIM Bank, although details were not provided on the kind of infrastructure the money would fund. However, Uganda mostly borrows for road and energy projects.
Uganda’s debt issues will likely grow due to the loan. The country’s public debt was 24.6 billion, as of December 31, fuelled by infrastructure spending.
Melissa Enoch
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