Uganda’s government has obtained a Shs 340 billion (€85 million) loan from the French Agency for Development (AFD) to enhance water supply and urban infrastructure in the Greater Kampala Metropolitan Area (GKMA). This initiative aims to tackle persistent water shortages amid rapid urbanization.
The financing agreement was signed on March 12 in Kampala by Finance Minister Matia Kasaija and AFD’s Regional Director for Africa, Jean-François Arnal. Kasaija acknowledged that Kampala’s growing population and expanding industries have strained water supply systems, outpacing previous investments in critical infrastructure.
Of the total funding, Shs 180 billion (€45 million) will be allocated to the second phase of the Kampala Water Lake Victoria Water and Sanitation Project. This phase will focus on rehabilitating and expanding the water distribution network, particularly in North Kampala. The project aims to benefit one million residents and will include the installation of 2,600 prepaid water meters in informal settlements to improve access.
The remaining Shs 160 billion (€40 million) will be directed towards the Greater Kampala Metropolitan Area Urban Development Program. This will enhance infrastructure coordination under the Ministry of Kampala Capital City and Metropolitan Affairs, alongside the Kampala Capital City Authority.
“This financing aligns with Uganda’s vision of expanding its economy from a GDP of $53 billion to $500 billion by 2040,” Kasaija stated. “We will ensure these funds are effectively utilized.”
The National Water and Sewerage Corporation (NWSC) has emphasized that this investment will boost daily water production from 160 million liters to 240 million liters, meeting the surging demand.
“When we complete the Katosi, Sonde, and Naguru water infrastructure projects, we will have the capacity to ensure sufficient water supply,” said NWSC Managing Director, Eng. Dr. Silver Mugisha.
Additionally, NWSC has requested further funding of Shs 320 billion (€80 million) for Kampala, Shs 136 billion (€34 million) for Masaka, and Shs 176 billion (€44 million) for Bara, pending presidential approval.
AFD’s Regional Director Jean-François Arnal stressed the importance of climate-resilient infrastructure in light of Uganda’s vulnerability to extreme weather conditions.
“Uganda’s climate is increasingly unpredictable, with fluctuating rainfall and flooding,” Arnal noted. “Our co-financing of Shs 159.2 billion (€40 million) will support urban infrastructure projects that strengthen resilience against these challenges.”
The project scope includes laying 71km of new pipelines, constructing three reservoirs, installing three booster stations, and extending services to 20 informal settlements. To further enhance water access, 2,500 prepaid meters and 1,450 public stand posts will be installed.
The project is being implemented by French construction firm Sogea Satom, under the supervision of Artelia and Gauff Consultants Uganda Limited. Work commenced on February 1, 2025, and is scheduled for completion by August 2027. Over three million people in areas including Kira, Kasangati, Kanyanya, Gayaza Road, and Mutungo will benefit from the initiative.
French Ambassador to Uganda, Xavier Sticker, reaffirmed France’s commitment to Uganda’s development. “This project reflects the strong partnership between our two nations,” he stated.
Since 2010, AFD has contributed Shs 1.08 trillion (€270 million) towards water infrastructure projects in Uganda, facilitating access to clean water for 450,000 people through new standpipes, schools, and sanitation facilities.
Minister of State for Environment, Beatrice Anywar Atim, urged Ugandans to safeguard water sources from pollution and encroachment.
“I direct all Ugandans to vacate wetlands. Our water sources are invaluable and must be protected,” she stated. “We must take responsibility to prevent waste dumping and destruction of catchment areas, including Lake Victoria.”
To further expand clean water services nationwide, the government is seeking an additional Shs 597.3 billion (€150 million), emphasizing its commitment to sustainable water management and infrastructure development.
busiinge@ghettopost.com
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