By Faridah N Kulumba
Africa-Press – Uganda. Uganda and Algerian governments recently signed a cooperation agreement that will see the North African nation provide USD 13.7 million (about Shs50 billion) to expand and rehabilitate Katakwi General Hospital. The formalization of the agreement took place on 9th September 2025, in Algiers by Uganda’s Finance Minister Matia Kasaija and Algerian Finance Minister Abdelkarim Bouzred, under the framework of Algeria’s International Cooperation for Solidarity and Development Agency.
About the deal
The new signed cooperation forms part of a broader framework overseen by the Algerian International Cooperation for Solidarity and Development Agency, positioning Algeria as a long-term partner in strengthening Uganda’s health system. Under the first phase, the grant will fund upgrades at Katakwi General Hospital, a facility that serves more than 500,000 people across Katakwi and neighbouring districts. Uganda urged Algeria to consider supporting a second phase of the project, which would include modern wards, advanced medical equipment, and training for health workers.Minister Kasaija also urged that future phases incorporate modern wards, advanced medical equipment, and training opportunities for Ugandan health workers—signalling Uganda’s intent to leverage the partnership for both infrastructure and human resource development.
What the partnership means to Uganda
Uganda’s minister of finance termed the agreement as a “transformative milestone,”in the growing partnership between the two countries, saying the Katakwi project would greatly improve healthcare delivery for more than 500,000 people across eastern Uganda. “This project will significantly transform health care delivery for Katakwi and the neighbouring districts, not only for today, but for generations to come,” Kasaija said. He explained that once this health care centre is completed, it will ease pressure on overstretched regional referral hospitals, cut down the high costs of long-distance medical travel, and bring specialised care closer to rural communities.
How Algerian benefits
For Algeria, the deal cements growing diplomatic and economic ties with Uganda. Minister Bouzred reaffirmed his government’s commitment, stressing that the cooperation is rooted in solidarity and mutual development. Algeria benefits from Uganda primarily through enhanced regional influence and cooperation within the African Union (AU), where both nations advocate for peace, security, and continental integration. While the current focus is on Katakwi, the broader agreement opens the door to additional healthcare projects, making this one of the most significant bilateral interventions in Uganda’s health sector in recent years.
Other signed MoUs between the two countries
In 2023, Uganda and Algeria signed two cooperation agreements and five Memoranda of Understanding in different areas. They include an agreement between Sonatrach, the national oil company of Algeria, and the Uganda Oil Refinery Holding Company Ltd to participate in the development of Uganda’s refiner.The areas that were on is for the Algerian parastatal to acquire a stake in the Ugandan company, which is yet to receive financing to commence construction. “We are looking at Algeria investing in our refinery. We want to build an inland refinery. It is absolutely necessary because it will cut transport costs seeing that we are far away from the coast,” said Museveni after the meeting with his host.They also signed other MoUs including cooperation in the field of trade, higher education, and scientific research. Other agreements were in the areas of energy, agriculture, and animal health.The two nations also discussed issues on growing the prosperity of Africa. They agreed to work together in the areas of trade, energy, education, agriculture, and counter-terrorism where they have experience.
The two countries bilateral ties
Uganda and Algeria are working on strengthening their bilateral ties, which include cooperation in trade, energy, mining, education, and scientific research, evidenced by recent agreements, a business forum and trade exhibition, and ongoing scholarship programs for Ugandan students. A significant development was the establishment of the Algerian-Ugandan Joint Business Council in 2023 to foster partnerships between businesses from both countries. Visits- Ugandan and Algerian officials have been engaging in meetings to strengthen cooperation, such as the meeting between President Museveni and the Algerian Minister of Energy and Mines. On 11th March 2023, The President of the Republic of Uganda Yoweri Kaguta Museveni visited Algeria’s President Abdelmadjid Tebboune on a three-day official visit that saw both leaders signing two agreements and five Memorandums of understanding (MoUs) to strengthen both countries’ relations and cooperation in various sectors.
In August 2024, the Ambassador-Designate of Algeria to Uganda visited the Ugandan Minister of Foreign Affairs.Business- A business forum and trade exhibition was held in October 2023, bringing together Algerian and Ugandan businesses to explore partnerships and investment opportunities. Energy and mining- The two nations have held discussions aiming for cooperation in the energy and mining sectors.Education- Algeria offers a long-standing scholarship program that has benefited many Ugandan students, with over 100 scholarships provided annually. Both nations have had a longstanding relationship, with core cooperation in education identified since 1986, and a Joint Commission of Cooperation (JCC) established in 1996 to foster deeper collaboration in various sectors, including trade, investment, and defence. While the relationship began much earlier, the 1996 establishment of the JCC marked a formalization of diplomatic and cooperative ties.
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