Uganda and Japan deepened economic cooperation during a high-level meeting in Kampala, where State Minister for Microfinance Shartsi Kutesa Musherure and Japanese Director General Takahashi Misako, head of African Affairs, prioritized youth empowerment, green technology, and financial inclusion. The discussions centered on expanding the Parish Development Model (PDM), which has reached 3,783,108 beneficiaries through Shs4.317 trillion allocated to 10,589 PDM SACCOs as of September 2026. Musherure highlighted the initiative’s evolution from a small-loan program to a platform integrating millions into the formal economy, aligning with Uganda’s National Financial Inclusion Strategy II (2023–2028).
Musherure proposed a joint Uganda-Japan Youth Enterprise and Innovation Facility to combine business training, financing, and digital integration, building on a 2024 JICA-backed initiative that supported 10 Ugandan startups. The plan includes digitalizing SACCOs, enhancing savings products, and leveraging Japan’s cooperative expertise. Meanwhile, the delegation discussed green micro-entrepreneurship, focusing on solar energy for rural commerce, irrigation, and clean cooking technologies. Takahashi emphasized Japan’s African diplomatic framework, anchored in promoting peace, fostering growth, and co-creating prosperity through youth engagement, aligning with Japanese Foreign Minister Motegi’s priorities.
Japan’s Ambassador to Uganda, Sasayama Takuya, and the delegation reiterated interest in collaboration on critical minerals and regional connectivity. Musherure noted Japan’s support for Uganda’s health, education, and refugee welfare sectors, alongside JICA’s infrastructure contributions. The dialogue also addressed challenges in SACCO governance, with Musherure advocating for stronger internal controls and leadership training. She underscored Uganda’s vision of microfinance as a sustainable ecosystem enabling savings, credit access, and risk management for small businesses.
The meeting underscored mutual goals to enhance financial inclusion and youth economic participation, with both nations aiming to scale innovations through technology and investment. Musherure’s proposal for a youth enterprise facility and Japan’s emphasis on green and digital solutions reflect a strategic alignment to address Uganda’s developmental needs while strengthening bilateral ties. The discussions set the stage for expanded cooperation in sectors critical to Uganda’s economic growth and Japan’s African engagement strategy.