Since 2004, the German government has committed grants worth more than EUR 250 million (over UGX 800 billion) for Ugandan-German development cooperation. As agreed with the Government of Uganda, the bulk of these funds (EUR 182 million; over UGX 600 billion ) aim at promoting development in three sectors:
Water and sanitation
Renewable energy end energy efficiency
Financial systems development and agricultural finance
In 2007, the German Federal Ministry for Economic Cooperation and Development (BMZ) declared Uganda a priority country for development cooperation. At the bilateral negotiations between the Ugandan and German governments, held in Kampala in May 2013, both sides agreed that this cooperation should focus on three main priority areas:
Renewable energies and energy efficiency
Sustainable economic development/rural and agricultural finance
Water and sanitation.
It was also agreed that good governance and adherence to human rights, including the rights of vulnerable groups and sexual minorities, were fundamental principles for Ugandan-German development cooperation.
Further projects are also on-going in the areas of transparency and accountability, climate change mitigation, the preservation of peace in the country’s northern regions, and capacity development for evaluation and governance statistics. GIZ is also involved in five development partnerships with the private sector in Uganda, while HIV/AIDS control is an integral part of every programme.
Across these sectors, German Development Cooperation co-finances investments through KfW Development Bank and provides Technical Assistance through GIZ - both state-owned implementing agencies.
Enhancing access of Ugandans to safe water, electricity or credit does not only require investments and technical advice. It also requires a sound enabling environment for the sector programmes. This is why German Development Cooperation also addresses cross-cutting issues, in particular - by engaging in a critical dialogue with the Ugandan Government as a budget support development partner:
By supporting reforms in Public Financial Management
By promoting human rights
By contributing to peace-consolidation and improving livelihoods, particularly in Karamoja and other parts of Northern Uganda
By cooperating with the private sector
By providing scholarships
In the various programme areas, German bilateral development cooperation collaborates with Ugandan partners at all levels. Partnerships exist at the national level with Ministries, the Bank of Uganda, autonomous bodies like the Ugandan Human Rights Commission and state-owned enterprises such as the National Water and Sewerage Corporation, at the intermediate level with local governments, universities and the private sector, and at the local level with the people themselves, grouped for example in Village Saving Organizations. Project implementation from central government to local level, as well as the input from about 120 qualified Ugandan employees of GIZ and KfW, ensures that "on the ground experience" feeds into policy advice and programme planning.
Cooperation through non-state actors
Besides Government-to-Government cooperation, implemented by KfW and GIZ, Germany also promotes development in Uganda through non-state actors, namely German foundations, and other Non-Government-Organizations. The German Government has co-funded projects of these organizations in Uganda with more than EUR 22 million (UGX 70 billion) since 2004.
The German Government funds various regional development programmes. Some funding is open to all African countries while other funds are specifically aimed at supporting regional organizations like the African Union (AU), the East African Community (EAC) or the International Conference of the Great Lakes Region (ICGLR) and their member states including Uganda. Also, the Uganda-based Nile Basin Initiative has been receiving support by German Technical Cooperation.
Germany extends substantial financial support to Uganda through its contributions to multilateral organizations that fund programmes in Uganda. As the largest single contributor to the European Development Fund and one of the top contributors to World Bank/IDA, African Development Bank and United Nations development activities, the German Government indirectly contributes on average more than EUR 60 million (UGX 200 billion annually) to Uganda's development, in addition to the bilateral and regional programmes.