Home Government Uganda Government Requests $650 Million Loans for Infrastructure and Agriculture

Uganda Government Requests $650 Million Loans for Infrastructure and Agriculture

77
0
uganda government requests 650 million loans for infrastructure and agriculture
uganda government requests 650 million loans for infrastructure and agriculture
Share this News

On October 10, 2023, Finance Minister Matia Kasaija presented a proposal in Parliament on behalf of the Ugandan government. The proposal seeks to obtain loans from various financial institutions amounting to $650 million (approximately Shs2.9 trillion) to support budgetary requirements.

The breakdown of the loan request is as follows:

Financial Institution Loan Amount (USD) Equivalent in Ugandan Shillings (Shs) Purpose
Islamic Development Bank $295 million Shs1.3 trillion Upgrading of national road project
Organisation of the Petroleum Exporting Countries (OPEC) fund for international development $30 million Shs136.2 billion Upgrading of national road project
International Development Association of the World Bank Group $325 million Shs1.5 trillion Financing Uganda’s climate-smart agricultural transformation project
International Development Association of the World Bank Group (Grant) $19.5 million Shs88.5 billion Financing Uganda’s climate-smart agricultural transformation project

The proposal is currently under parliamentary review. If approved, Uganda’s public debt will rise to over $24 billion (Shs108.9 trillion), potentially causing further debt-related challenges. Currently, Uganda’s external debt stands at more than $13.6 billion (Shs61.7 trillion), constituting 31.3 percent of its Gross Domestic Product (GDP). Additionally, domestic debt amounts to over $8.4 billion (Shs38.1 trillion), equivalent to 19.3 percent of GDP, according to the International Monetary Fund (IMF).

Deputy Speaker Thomas Tayebwa has urged the Committee of National Economy, responsible for scrutinizing the loan request, to expedite the process and submit a timely report. Mr. Tayebwa stressed the importance of avoiding unnecessary delays.

While the Minister did not specify the roads to be upgraded under this loan request, some Members of Parliament, including Mr. Elija Okupa, raised concerns about the need for equal distribution of benefits across regions. These finer details will be addressed by the committee, which will subsequently report to Parliament.