IMF backs Uganda’s growth agenda with $120 million

Uganda is set to receive a fresh loan from the International Monetary Fund (IMF). The global lender recently approved a $120 million loan to the East African country following approval from the IMF board. The loan under an Extended Credit Facility follows a line of disbursements that dates back to 2021.

According to a report seen in The East Africa, Uganda has been granted a loan of $120 million following the the fifth evaluation of the Multilateral Lender’s Extended Credit Facility (ECF) program, which may see Kampala receive up to $1 billion.

This disbursement marks the fourth time Uganda will be receiving a loan from the IMF under the ECF program, which began three years ago in 2021.

The last time a loan was disbursed to Uganda under the program was in June 2023. So far, the total amount collected is $870 million.

According to the IMF, these loans have not only helped the country curb the effects of inflation but have also helped it recover from the economic shock brought about by the coronavirus pandemic.

“Uganda’s recovery is becoming more broad-based, supported by falling inflation and oil industry investments,” the Deputy Managing Director of the IMF Bo Li relayed via a statement.

He also added that the reforms under the ECF loan would help “Support fiscal consolidation to keep the public debt ratio on a downward path, ensure sustainable social and development expenditure, and implement structural reforms to improve governance and facilitate private sector-led growth.”

The report by The East African also noted that the European Union has also provided Uganda €218.5 million ($237.1 million) for eight new projects that will promote women’s businesses, renewable projects, business and human rights, and agricultural value chains.

SOURCE:africa.businessinsider.com