By Spy Uganda
The Government of Uganda has announced two major financing proposals worth a total of UGX 2.27 trillion from the World Bank and its partners, aimed at improving education, refugee welfare and environmental restoration across the country.
The proposals were presented before Parliament during the October 20, 2025 plenary sitting, as part of a wider plan to expand access to education and strengthen infrastructure in refugee-hosting areas that are struggling with population pressure.
Under the first proposal, Government plans to borrow US$180.5 million (about UGX 627.97 billion) and receive a grant of US$147.5 million (about UGX 513.16 billion) from the World Bank Group, making a total of UGX 1.14 trillion. The funds will finance Phase II of the Development Response to Displacement Impacts Project, commonly known as DRDIP II.
The project targets refugee-hosting districts and will support the construction of schools, roads and health facilities, while also promoting environmental conservation and community resilience.
The World Bank has, however, insisted on strict accountability measures, requiring the Inspectorate of Government to supervise the Office of the Prime Minister throughout the project’s implementation to prevent corruption and misuse of funds.
According to the Ministry of Finance, Uganda’s refugee population has risen from 220,000 to more than 1.8 million, mostly from South Sudan (54 percent) and the Democratic Republic of Congo (32 percent). This surge has put huge pressure on host communities that already face unemployment, poverty and poor infrastructure.
“The increased refugee inflows continue to strain host communities at a time when humanitarian aid is declining. Self-reliance for both refugees and host communities is now a critical development priority,” said State Minister for Finance, Henry Musasizi.
The DRDIP II project will cover twelve refugee-hosting districts, including Adjumani, Kiryandongo, Isingiro, Koboko, Yumbe, Lamwo, Kamwenge, Kyegegwa, Madi Okollo, Obongi, Terego and Kikuube. It will also extend to transit and urban districts such as Kisoro, Kanungu, Bundibugyo, Ntoroko, Gulu, Arua, Mbarara, Hoima, Moyo, Koboko and Kitgum.
Planned works include 3,656 new school buildings, 1,400 classrooms, 36 laboratories, 20 dormitories and 2,000 sanitation facilities. The project will also support 320 health centers with furniture, solar power and water systems, upgrade 2,300 kilometers of roads, build 30 bridges, establish 42 community markets and develop 20 rural water schemes powered by solar pumps.
A total of US$30 million (about UGX 104.37 billion) will go towards restoring ecosystems through reforestation of 7,000 hectares of degraded land and afforestation of 6,500 hectares. Another US$16 million (UGX 55.66 billion) is set aside for administration, monitoring and accountability systems.
The second proposal seeks US$210 million (UGX 730.61 billion) from the World Bank and a US$114.8 million (UGX 399.4 billion) grant from the Global Partnership for Education, bringing the total to UGX 1.13 trillion. This money will fund the Uganda Learning Acceleration Program, or ULEARN.
The program is designed to close gaps in education infrastructure and improve learning quality, as Uganda’s school-age population is projected to grow from 16 million in 2020 to 22.7 million by 2040.
Although Uganda has achieved a 91 percent enrolment rate in primary education, secondary school enrolment remains low at 22 percent. The country’s Human Capital Index stands at 0.39, meaning a child born today will reach only 39 percent of their potential productivity due to weaknesses in education and health services.
“Investing in human capital is now an urgent priority,” Minister Musasizi said, pointing out that Uganda’s fertility rate of 4.5 births per woman and dependency ratio of 89 per 100 working-age persons are both higher than the Sub-Saharan average.
Under ULEARN, Government plans to spend US$89 million (about UGX 309.64 billion) to promote Kiswahili teaching in primary schools, train teachers and upgrade 29 teacher training institutions. Another US$189 million (UGX 657.55 billion) will go towards rehabilitating and equipping 121 traditional secondary schools and 66 inclusive primary and secondary schools. About US$26.8 million (UGX 93.25 billion) will fund coordination, monitoring and technical support through the Ministry of Education and Sports.
The program is expected to directly benefit about 8 million learners and 65,000 teachers through better facilities, learning materials and access to digital tools.
Both proposals have been sent to Parliament’s Committee on National Economy for review before final approval. If passed, the combined UGX 2.27 trillion investment will become one of Uganda’s biggest packages for education and refugee infrastructure in recent years, reflecting Government’s determination to bridge service delivery gaps amid growing population and humanitarian pressures.
