Uganda will receive more than $2 billion in new financing from the World Bank over the next three financial years to support economic development, a senior finance ministry official announced on Tuesday.
The global lender resumed lending to Uganda in June after nearly two years of suspended funding due to the country’s controversial anti-LGBTQ law, which includes the death penalty for certain same-sex offences.
“I am glad to announce that concessional financing is back. In the next three financial years, the World Bank will disburse over $2 billion of new money to finance our development,” said Ramathan Ggoobi, Permanent Secretary of the Ministry of Finance and Secretary to the Treasury, in a statement to the media.
Ggoobi said the funds will be used to finance key projects in transportation, energy, ICT, agriculture, and other sectors.
The World Bank has long been one of Uganda’s largest sources of low-cost credit, alongside China. The suspension of loans had forced the government to rely on domestic borrowing at higher interest rates, according to finance ministry data.
Uganda is also in talks with the International Monetary Fund (IMF) for a new Extended Credit Facility program after the previous $1 billion facility expired last year before full disbursement.
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Source:Africa Publicity
