Uganda Receives 1.1 Trillion Ugandan Shillings From World Bank

On June 29^th, 2020, the World Bank Board of Directors approved a $300 million9 (1.1 trillion shillings) budget support operation for Uganda.

This money is meant to help Uganda boost the Government’s capacity to prevent, detect and treat the coronavirus, protect the poor and vulnerable population, and support economic recovery, according to World Bank.

This budget has been termed “The Uganda COVID-19 Economic Crisis and Recovery Development Policy Financing.” It is aimed at addressing the fiscal financing gap while supporting reforms that will provide immediate relief to individuals and businesses that have been most affected by the pandemic.

This recovery budget drafted by the World Bank to Uganda is the first budget support operation in more than 6 years.

“The COVID-19 pandemic has had a significant impact on the economy and livelihoods. This budget support operation will enable the Government to provide vital services, social safety nets, and a more robust shock-responsive system for the long term, and the economy to recover faster,” said Tony Thompson, World Bank Country Manager for Uganda.

Uganda has so far recorded 889 COVID-19 cases as of 1^st July 2020 with no recorded deaths and the country is still under a partial lockdown, with restrictions on travel, banned public gatherings and closed schools and businesses.

“To secure financing, Uganda has undertaken policy measures that directly benefit many low-income households. Farmers will be supported to access high quality agricultural inputs, seeds, and fertilizers using e-vouchers to boost nutrition and food security. Social protection programs through cash for work labor-intensive programs will be expanded to benefit 500,000 individuals while the current senior citizen grant will cover an additional 71 districts to support the elderly.” Says a statement from World Bank.

According to world Banks, businesses in distress will receive tax relief alongside the liquidity measures from the Central Bank to commercial banks, microfinance institutions and credit institutions that allows them to provide a moratorium on loan repayment for businesses and individual borrowers that have been affected by the pandemic for up to 12 months.

In addition, the Government has committed to stronger transparency and management of state-owned enterprises’ debt and payment of domestic arrears to suppliers, this is to stimulate the recovery of the private sector.

By Nsunjo Erica