|Uganda Gets 40 Million Grant to Improve Agricultural Infrastructure|
|Emerging Markets Business News|
|Saturday, 18 June 2011 06:18|
The African Development Bank Group (AfDB) and the government of Uganda have signed a loan agreement for UA 40 million (UA 1.0 = USD 1.6). The loan is to be used for the community agricultural infrastructure improvement programme (CAIIP-3) in the country.The objective of the project is to improve access to transport services for the rural population in order to develop an adequate, affordable, safe, environmentally sound and efficient transport system within the context of a progressive and competitive market economy.
Signing for the Ugandan Minister of Finance, the Deputy Treasury Secretary, Keith J. Muhakanizi, noted that the AfDB has been his country's privileged partner for decades. He noted that agriculture infrastructure was key to the country's 2010-2015 development plan, and also explained that supporting this sector was a major way to open up the country to markets and other opportunities, including reduction of transport costs.
AfDB Vice President Kamal ElKeshen took the opportunity to confirm the strength of the relationship between the Bank and Uganda. He also reaffirmed the Bank's engagement in Uganda, stressing that the CAIIP-3 targeted poverty reduction and economic growth in agricultural and rural areas.
"The Bank will continue to support your government's efforts to bring about transformative and sustainable development in Uganda," he said.
The benefits of the project include: an increase of 60% in the volume of agricultural produce marketed; an increase of 20% in the share of market price enjoyed by farmers; the rehabilitation of 225 km of district roads and 4365 km of community access roads; and the construction of 97 market places equipped with storage capacity, and agro-processing equipment installed.