Uganda and Italy have signed a development cooperation framework agreement that could unlock €120 million (about Shs500 billion) in concessional financing for Uganda’s coffee sector and green city initiatives.
The agreement was signed by Finance Minister Henry Musasizi on behalf of the Ugandan government and Riccardo Guariglia, the Secretary General of Italy’s Ministry of Foreign Affairs and International Cooperation, at State House, Entebbe.
President Museveni witnessed the signing ceremony, which was also attended by Prime Minister Robinah Nabbanja and other government officials.
President Museveni welcomed the Italian delegation and commended Italy for its continued support towards Uganda’s development agenda.
The proposed €120 million financing will support Uganda’s coffee sector and the preparation of investments under the Green Cities initiative in Kampala and Hoima, particularly in waste management and the improvement of food markets.
Minister Musasizi said the partnership would support Uganda’s Tenfold Growth Strategy, the Fourth National Development Plan and the Agro-Industrialisation, Tourism Development, Mineral Development and Science, Technology and Innovation (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.
He said Uganda was keen on increasing coffee productivity while strengthening local processing, improving quality and expanding access to international markets to ensure farmers and businesses retain more value from the sector.
In urban areas, he said, improved waste management systems and modern food markets would enhance public health, reduce post-harvest losses and create business opportunities for local enterprises.
Minister Musasizi noted that Italy’s experience in manufacturing, agricultural processing and enterprise development could help Uganda achieve its development objectives.
He also called for stronger bilateral trade and Italian investments that would facilitate technology transfer, skills development and expansion of production capacity.
The minister further highlighted the importance of partnerships between universities, research institutions and businesses in transforming innovations into commercially viable products and employment opportunities.
Uganda’s existing development cooperation with Italy comprises approximately €35.1 million in ongoing projects, while another €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 for maternal, child and cancer care.
The remaining €12.35 million supports skills development, agriculture, environmental protection, cultural heritage, private-sector development, refugees and host communities.
The proposed areas of cooperation also include agricultural mechanisation, coffee and cocoa value chains, tourism, science and technology, water management and greener cities.
The signed framework agreement establishes the procedures for implementing the cooperation, including the responsibilities of both governments, project execution and accountability for resources.
Minister Musasizi said the Ministry of Finance would work with relevant sectors and Italian partners to develop viable projects, negotiate favourable financing terms and ensure the sustainable operation and maintenance of the investments.
Guariglia reaffirmed Italy’s commitment to the cooperation framework agreement, signalling continued collaboration between the two countries in supporting Uganda’s development priorities.
