This brings the total to USD 823.1m (3 trillion shillings) Uganda has received from three lenders: African Development Bank, the World Bank, and the International Monetary Fund (IMF) to respond to COVID-19 since May 2020.
Uganda has received more than 3 trillion shillings from big lenders to fight coronavirus
Uganda has received a USD 31.6m (116.7
billion shillings) loan from the African Development Fund (ADF) to help in the
response to the Coronavirus (COVID-19) pandemic.
In a statement sent out on Sunday afternoon,
the ADF, which is a concessional funding arm of the African Development Bank
Group, said the “funds are designed as budget support within the framework of
the Bank Group’s COVID-19 Crisis Response Facility.”
This brings the total to USD 823.1m (3
trillion shillings) Uganda has received from three lenders: African Development
Bank, the World Bank, and the International Monetary Fund (IMF) to respond to COVID-19 since May 2020.
African Development Bank says the money
will help Uganda enhance its capacity to test and treat COVID-19 patients to
reduce risk of infection and morbidity. It will ease the impact of the lockdown
and other COVID-19 related measures on the poorest.
The Bank’s Country Manager for Uganda, Kennedy
Mbekeani, said they expect the money to provide financing to the budget for
targeted spending, aimed at containing and mitigating the health and economic
impact of the COVID-19 pandemic.
“The authorities are committed to full
accountability on crisis-related spending including through ex-post audits of
COVID-19 related spending,” he said in a statement.
The latest round of loan towards
coronavirus activities is one of the many that government has received.
In May, the International Monetary Fund
(IMF) approved USD 491.5m (1.9trillion shillings) loan to help the country
finance the health, and social protection measures.
Part of this money went to Bank of Uganda
to help stabilize the economy after the covid-19 instigated a complete
The World Bank has also come through
generously in June giving government $300 million (1.1trillion shillings) in budget
support operation for Uganda to boost the government’s capacity to prevent,
detect and treat the coronavirus. The World Bank said the money would also
protect the poor and vulnerable population and support economic recovery.
Despite the fact that the loans are mostly
concessional and therefore cheap and have friendly repayment terms, some
Ugandans have raised red-flag on possible abuse and called on the lenders to be
particularly strict on how this money is used.
Clara Mira, the IMF
Country representative for Uganda, told reporters in May that Uganda had agreed
to meet tough conditions that would ensure the money for coronavirus is not abused.
She the IMF in particular had asked that Uganda must report separately about
the use of this money and not lump it together with general reporting of all
Clara said Uganda will also be required to publish large
procurement contracts where this money will be spent. The third condition is
that within a year, Uganda will be required to have an independent audit on the
usage of the money. The results of the audit, Clara said, must be published for
the public to know.
The number of positive COVID-19 cases in Uganda are now at 1,103 with one death.