A growing diplomatic rift between Uganda and Germany threatens to cast a shadow over critical development projects, ranging from refugee support to energy infrastructure.
The fallout, which stems from escalating tensions over governance and human rights concerns, may trigger economic spillovers that could stall or jeopardize Germany’s ongoing aid-funded initiatives in Uganda.
A UPDF statement authored on May 26, cut military cooperation ties with Germany, with accusation that the German Ambassador in Uganda, His Excellency Mathias Schauer was engaged in illegal and clandestine activities.
Germany’s development support to Uganda has traditionally taken the form of concessional financing and grants, aligning with Uganda’s debt sustainability goals under the National Development Plan III (NDP III).
However, with Berlin re-evaluating its diplomatic and economic engagements in light of political developments in Kampala, that model could face disruption.
Germany, through its KfW Development Bank, has been one of Uganda’s most reliable bilateral partners, channeling substantial resources into long-term projects aimed at boosting infrastructure and social services.
However, with diplomatic relations fraying, stakeholders are concerned that these lifeline interventions could face delays, reduced disbursements, or even full suspension.
Data sourced from the Local Development Partners’ Group (LDPG), an apex forum for coordination of development issues in Uganda shows that Germany’s bilateral development cooperation in Uganda spans multiple sectors, aligned with Uganda’s needs and Germany’s thematic priorities.
Germany supports Uganda’s agricultural sector to improve food security, livelihoods, and rural income such as promoting market-oriented farming, climate-smart agriculture, and land tenure security, especially in the north.
For example, German projects have helped 36,000 farmers increase their incomes by strengthening value chains, providing training, and improving access to finance.
Efforts to expand Uganda’s access to clean energy has been a major pillar of German aid to Uganda.
Programs have focused on renewable energy generation such as solar, hydro, biomass, and energy efficiency to support Uganda’s sustainable growth and climate change mitigation.
Through the Global Energy Transfer Feed-in Tariff (GET FiT) program (led by KfW), Germany and partners provided results-based incentives that have helped add about 156 MW of renewable power capacity by financing 17 small power plants in hydro, solar, and biomass.
This has leveraged significant private investment (over USD 450 million) and will provide electricity to an estimated 1.2 million additional people while cutting carbon emissions.
Germany also supports rural electrification through installing solar mini-grids to serve off-grid communities and promotes improved cookstoves to reduce deforestation.
Data from Uganda’s Ministry of Finance shows, the German government has also been at the forefront of funding the extension of key power transmission lines such as the Masaka–Mbarara Transmission Line Project valued at EUR 35 million (part of a EUR 72.1 million project co-financed with France’s AFD)
Launched in 2022, part of the objective is to boost electricity transmission in Western Uganda and support cross-border trade with Rwanda.
Germany also financed the Mutundwe–Entebbe Transmission Line costing EUR 21 million (EUR 6 million grant + EUR 15 million concessional loan)
Germany has also helped establish a Renewable Energy Training Center at Uganda’s Nakawa Vocational Institute, training 230 solar technicians to build local expertise.
Governance, Accountability and Human Rights
Good governance is a cross-cutting focus of German aid. Germany works to strengthen public financial management, anti-corruption efforts, civil society, and human rights protection in Uganda.
Support is provided to institutions like the Office of the Auditor General to improve transparency and accountability in the use of public funds German programs also engage local governments and organizations to foster citizen participation and oversight.
In recent years, as Uganda has seen democratic backsliding and restrictions on civic space, Germany has redoubled efforts to promote inclusive, accountable governance as a foundation for development
For example, in 2018 Germany committed over EUR 10 million for initiatives in public finance reform, anti-corruption, and civil society support to address governance challenges.
Additionally, German political foundations and NGOs such as Konrad-Adenauer-Stiftung are active in Uganda, advancing dialogue on governance, rights and the rule of law, often with German funding support.
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Germany’s Federal Ministry for Economic Cooperation and Development shows German assistance explicitly supports refugee communities and their Ugandan hosts.
German development cooperation has a regional focus on northwest Uganda, where many refugees from South Sudan and D.R. Congo resides.
Projects aim to improve basic services and economic opportunities in refugee-hosting districts – for example, by expanding water and sanitation infrastructure, health centers, and schools.
Water supply projects financed by Germany’s KfW Development Bank have improved access to clean water in 16 host community towns and settlements, including installing water systems in schools and health clinics.
Germany has also contributed humanitarian aid through the Federal Foreign Office: for instance, in 2021–2023 Germany provided EUR 3.6 million via the World Food Programme to support food assistance for 1.4 million refugees in Uganda during the COVID-19 crisis.
The German Federal Ministry for Economic Cooperation and Development (BMZ) also committed EUR 10 million to support South Sudanese refugees and host communities in Uganda. The funds will be applied using the Refugee Response Fund.
This complements development programs that help refugees and locals build self-reliance such as livelihood training in West Nile benefiting both refugees and host populations.
More Funding
German bilateral funding to Uganda has remained substantial in recent years, with a focus on sustainable development and crisis response. In October 2022, Uganda and Germany signed a new bilateral cooperation agreement worth EUR 68.8 million for the 2022–2024 period.
This funding is targeted at building climate resilience in agriculture and expanding sustainable energy access in Uganda. It aligns with Uganda’s National Development Plan III and Germany’s emphasis on climate-smart development. For example, part of these funds will finance sustainable agriculture programs to improve farming incomes amid climate change, and renewable energy projects (such as solar mini-grids and grid expansion) to boost rural electrification.
Uganda is also a key beneficiary of Germany’s assistance through the East African Community and Germany’s KfW Development Bank partnership with four signed agreements valued at EUR 46 million.
The partnership is aimed at advancing key regional infrastructure, improving healthcare systems, fostering regional cooperation and mitigating the effects of climate change.
KfW, in partnership with the European Union, is supporting the EAC’s Lake Victoria Basin Commission (LVBC) to promote sustainable and coordinated use of the Lake’s resources.
Two contracts, amounting to EUR 30 million, were signed for the ‘Lake Victoria Basin Integrated Water Resource Management Programme.’
These investments focus on expanding sewerage systems in Kampala (Uganda) and Mwanza (Tanzania), and constructing sanitary facilities and a sewerage system in Kisumu (Kenya), particularly for informal settlements.
In the health sector, KfW is also supporting the EAC’s efforts to combat infectious diseases. Through a collaboration with the Bernhard Nocht Institute for Tropical Medicine in Hamburg, the laboratory network across seven EAC countries is being expanded, with additional training provided to laboratory personnel.
This initiative, funded with EUR 12 million, aims to enhance rapid diagnostics during disease outbreaks, including responses to Ebola, dengue, COVID-19, and more recently, the Marburg virus and Mpox.
The EAC scholarship programme, similar to the European Erasmus programme, designed to support talented Master’s students from socio-economically disadvantaged backgrounds pursuing studies in STEM subjects or economics.
This initiative helps broaden students’ horizons and fosters greater social integration across the EAC countries. In its first phase, 180 students from eleven universities in Kenya, Tanzania, Uganda, and Rwanda benefitted from the programme.
The second phase, with an additional EUR 4 million funding, will extend the opportunity to students from Somalia and the Democratic Republic of Congo, further enhancing regional mobility and academic collaboration.
Trade
In trade terms, bilateral trade between Uganda and Germany was estimated at USD 335 million in 2024. Uganda’s main exports to Germany are coffee, tea and fish, while its main imports from Germany are machinery and chemical products. Several German enterprises operate successfully in the country.
Ugandan students are also key beneficiaries of German languages and courses, including the prestigious German Academic Exchange Service (DAAD) which awards annual scholarships, promotes university cooperation and seconds a lector to Makerere University.
