Islamic Bank insures Akii-Bua Stadium project at Shs 236bn

The construction of the Akii-Bua Olympic Stadium in Lira City has received insurance backing worth $65 million (about Shs 236 billion) from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), providing financial risk cover for the project.

The support was secured through a Specific Transaction Policy (STP) issued to Egypt’s SAMCO National Construction Company, the contractor implementing the project, to insure a supplier credit facility.

The agreement was signed on the sidelines of the Islamic Development Bank (IsDB) Group 2026 Annual Meetings in Baku, Azerbaijan. The Akii-Bua Stadium project has a total contract value of about $130 million (approximately Shs 472 billion).

Under the arrangement, ICIEC will provide 90 per cent insurance cover against the risk of non-payment under a ministry of Finance guarantee issued by the Government of Uganda.

The stadium forms part of Uganda’s efforts to expand its sports infrastructure ahead of the 2027 Africa Cup of Nations (AFCON), which Uganda will co-host with Kenya and Tanzania.

The 20,000-seat multi-purpose facility in Lira City has been designated as both a competition venue and a training camp for the tournament. Construction is being undertaken by SAMCO National Construction Company and is expected to be completed in early 2027.

Beyond the tournament, the project is expected to generate employment during construction, stimulate demand for locally sourced goods and services, and contribute to long-term economic growth through sports tourism, commercial activity and urban development in Northern Uganda.

ICIEC chief executive officer Dr Khalid Khalafalla said the insurance support demonstrates how risk mitigation instruments can facilitate investment in strategic infrastructure with lasting social and economic benefits.

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