France discusses its future ties with Uganda

Monday, February 12, 2024

Summary:

  • France pledges millions of Euros to bolster its collaboration with Uganda, focusing on energy, water, and sanitation sectors. They aim to revamp the Kiira-Nalubaale hydro-electric power dam and enhance water treatment facilities. France’s economic diplomacy involves over 40 French companies investing in Uganda.

France plans to strengthen its longstanding collaboration with Uganda by investing millions of Euros in the country’s energy, water, and sanitation sectors this year. Xavier Sticker, the French Ambassador to Uganda, revealed that the partnership is supported by the AFD portfolio, valued at about €800 million for ongoing projects, along with an additional €400 million portfolio from the AFD subsidiary, Proparco, which aids private sector investments.

A priority for the French government is the renovation of the Kiira-Nalubaale hydro-electric power dam complex in Jinja along the River Nile. Funding for the rehabilitation, totaling €85 million, includes a €73 million loan from AFD, a €2 million grant from AFD, and a €10 million grant from the EU Delegation in Uganda.

The refurbishment aims to maximize the dam’s potential, as it currently produces a third of Uganda’s total hydropower capacity, which is nearly 1000MW. Sticker emphasized the significance of this project for Uganda’s industrialization agenda.

In addition to the energy sector, France, through AFD, plans to increase investment in Uganda’s water and sanitation sector. The Katosi Water Treatment Plant and a water treatment plant at River Kagera are examples of ongoing projects that aim to provide clean water to millions of people.

France’s economic diplomacy in Uganda involves over 40 French companies operating across various sectors, including energy, distribution, logistics, and transport. Notably, TotalEnergies has invested significantly in Uganda’s oil and gas infrastructure. The ambassador highlighted the role of French companies in job creation and economic development.

Looking ahead, France aims to facilitate more French companies’ entry into Uganda through MEDEF and expects visits from French business delegations. The embassy also emphasizes cooperation on shared values, including women’s rights and humanitarian support for refugees.

Furthermore, France is committed to supporting Uganda’s youth by enhancing educational and cultural exchanges. Initiatives such as the French International School of Kampala and Alliance Française de Kampala are pivotal in fostering bilateral relations.

France’s involvement in Uganda’s energy transition aligns with global efforts to reduce carbon emissions. AFD is financing Uganda’s energy transition plan, supporting the government’s ambition to achieve carbon neutrality by 2060.

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Busiinge Aggrey
By Busiinge Aggrey Examiner Journalist
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Business Aggrey" is a 23-year-old Ugandan journalist and Editor-in-Chief at The Black Examiner newspaper
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