HEALTH JACKPOT? Uganda, US Sign Shs6.42Trillion Health Deal

KAMPALA – Uganda has secured a massive $1.7 billion (about Shs6.42 trillion) health financing package from the United States to strengthen the country’s health sector over the next four years.

The deal was sealed on Thursday through a Strategic Objective Agreement (SOAG) covering the period 2026 to 2030, opening a new chapter in the longstanding health partnership between Uganda and the US.

The agreement gives Uganda direct access to US government support for the prevention, detection and response to emerging and existing infectious disease threats.

It also marks a major shift in how American health assistance will be delivered, with more funding expected to flow directly to the Government of Uganda rather than predominantly through non-governmental organisations, private charities and community groups.

The agreement operationalises the Memorandum of Understanding signed on December 10, 2025, under which the US committed the $1.7 billion support package.

Finance Minister Henry Musasizi welcomed the new funding arrangement, saying it fits Uganda’s push for greater country ownership of development programmes.

He said the government wants external assistance better aligned with national priorities while improving the effectiveness, sustainability and accountability of development cooperation.

Musasizi described the agreement as another major milestone in the Uganda-US partnership, which has supported the country in fighting HIV/AIDS, tuberculosis and malaria, as well as responding to emerging and re-emerging diseases, including viral haemorrhagic fevers.

“These interventions have saved lives, strengthened communities and enhanced Uganda’s capacity to respond to public-health emergencies,” Musasizi said.

The new arrangement, however, is expected to go beyond individual diseases.

According to the Ministry of Finance, the partnership will strengthen national health systems and institutions, build workforce capacity, improve accountability and enhance Uganda’s ability to plan, finance and deliver quality health services.

US Embassy Chargé d’Affaires Mikael Cleverley said the agreement was more than a financing mechanism, describing it as a demonstration of Washington’s goodwill and confidence in Uganda’s leadership and health sector.

He said the government-to-government approach is intended to give Uganda greater leadership in managing its public-health priorities.

Health Minister Dr Chris Baryomunsi also welcomed the shift away from predominantly off-budget assistance towards direct government-to-government financing.

Baryomunsi said Uganda still faces a significant burden of both communicable and non-communicable diseases and therefore requires sustained investment in the health sector.

He pointed to improvements recorded over the years, including a decline in HIV prevalence from 18.5% in the late 1980s and early 1990s to 5.9%, alongside an increase in life expectancy from about 43 years to 68 years.

The government says the new partnership will build on these gains while strengthening Uganda’s ability to finance and manage its own health priorities.

The $1.7 billion package is therefore expected to play a major role in supporting disease prevention, surveillance, health-system strengthening and emergency preparedness between 2026 and 2030.

The government-to-government financing model also puts greater responsibility on Uganda to demonstrate strong financial management, accountability and measurable results in the utilisation of the funds.