Uganda, U.S. Sign Shs6 Trillion Health Sector Agreement
Uganda and the United States have signed a five-year health sector agreement worth about Shs6.42 trillion, shifting a significant portion of US health assistance towards direct government-to-government financing.
The Strategic Objective Agreement, covering the period 2026 to 2030, was signed at the Ministry of Finance, Planning and Economic Development by Minister of State for Finance (General Duties) Henry Musasizi and US Embassy Chargé d'Affaires Mikael Cleverley.
The agreement operationalises a Memorandum of Understanding signed by the two countries on December 10, 2025, and will see the US government provide approximately $1.7 billion (about Shs6.42 trillion) over five years to support disease prevention, detection and emergency response.
The deal represents a significant change from previous arrangements in which much of the US assistance was provided off-budget through non-governmental organisations.
Under the new framework, funding will increasingly be channelled directly through the Ministry of Finance, Planning and Economic Development, with the aim of strengthening government ownership, aligning external assistance with national priorities and improving the sustainability of health programmes.
The total co-investment package is valued at $2.3 billion, including Uganda's commitment to progressively increase its domestic health sector financing by more than $500 million over the five-year period.
Musasizi said the agreement builds on the longstanding health partnership between Uganda and the United States.
"This agreement marks another significant milestone in our longstanding partnership with the United States. These interventions have saved lives, strengthened communities, and enhanced Uganda's capacity to respond to public-health emergencies," Musasizi said.
He said the shift towards direct budget support was consistent with Uganda's efforts to strengthen country ownership and ensure external assistance responds to national priorities.
"This shift aligns with Uganda's goal of strengthening country ownership, aligning external assistance with national priorities, and improving the effectiveness and sustainability of development cooperation," Musasizi said.
Cleverley described the agreement as a demonstration of Washington's confidence in Uganda's government and health sector.
"This agreement represents more than a mechanism for partnership; it is a demonstration of US goodwill and confidence in the Government of Uganda leadership and the health sector," he said.
Health Minister Dr Chris Baryomunsi welcomed the move towards direct budget financing, saying it would help Uganda address its continuing disease burden while building on gains made through previous health interventions.
"Uganda continues to face a significant burden of both communicable and non-communicable diseases. However, our joint efforts have delivered results. HIV prevalence has fallen from 18.5% in the late 1980s to 5.9%, and average life expectancy has risen from 43 years to 68 years," Baryomunsi said.
The agreement is expected to strengthen Uganda's capacity to prevent and detect diseases, respond to public-health emergencies and sustain health interventions while giving the government greater responsibility for planning and managing externally supported programmes.
Read the original article on Nile Post.