U.K. Export-Credit Agency to Lend Uganda 102 Million Euros

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(Bloomberg) -- Uganda plans to borrow 101.9 million euros ($112.7 million) from U.K. Export Finance to develop solar-powered irrigation and water systems to boost agriculture in Africa’s biggest coffee exporter.

Uganda will spend the funding to develop 920 water systems for domestic use and for irrigation, the parliament’s National Economy Committee said in a statement posted on the legislature’s website. U.K-based Nexus Green Ltd. will establish a factory in Uganda to make equipment and install the systems, the lawmaking committee said.

Only 1% of 3 million hectares in Uganda that could be irrigated are under controlled watering because of the costs, the report said. The country targets to increase the area under irrigation to 1.5 million hectares by 2040, it said.

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