Uganda receives UGX 170 billion World Bank disbursement for industrial transformation project

July 16, 2025 in Business, Finance, Investment, Trade & Industry by Editor

The Government of Uganda has received the first tranche of UGX 170 billion from the World Bank under the UGX 800 billion Investment for Industrial Transformation and Employment (INVITE) Project, unlocking affordable financing for the manufacturing and export sectors.

The disbursement follows the fulfilment of all conditions precedent by the INVITE Trust Investment Committee, which met July 15, to brief the Trustees—comprising the Ministry of Finance, Planning and Economic Development (MoFPED) and the Bank of Uganda—on the project’s readiness to proceed. The first tranche will fund the launch of a Working Capital facility through eligible financial institutions.

The INVITE Trust, created as a special-purpose vehicle under the broader INVITE Project, is designed to improve access to development finance for Ugandan manufacturers and exporters. With an aim of creating over 200,000 private sector jobs, the project is central to the government’s Tenfold Growth Strategy, which targets inclusive economic expansion, including in refugee-hosting communities.

Out of the UGX 800 billion total, UGX 642 billion will be deployed through the INVITE Trust across four financing instruments: Working Capital; Receivables Financing; Credit Guarantee; and Patient Capital, all in local currency. A further UGX 158 billion will be administered by the Private Sector Foundation Uganda (PSFU) as grants to support business development services for firms engaged in manufacturing and export value chains.

Speaking at the briefing, Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, welcomed the disbursement and reaffirmed the government’s commitment to expanding affordable financing options for Ugandan enterprises. He also commended the appointment of KPMG as Trust Manager and urged full operationalisation of all financing windows.

Bank of Uganda Governor Michael Atingi-Ego reiterated the central bank’s support for the Trust and highlighted its role as custodian of the facility. He underscored the long-term impact of the INVITE Trust in transforming Uganda’s financing landscape by addressing structural barriers to credit access for productive sectors.

The INVITE Project is co-financed by the World Bank and a coalition of development partners including the Netherlands, the United Kingdom, and Sweden, under a Multi-Donor Trust Fund (MDTF). The project is implemented by the INVITE Trust and PSFU.