Ugandan lawmakers are expected to authorise the National Treasury to borrow from the World Bank’s International Development Association (IDA) for a project that was approved in 2022, according to the parliament’s website. The financing includes a US$48 million grant and is for urban development projects. According to the Minister of State for Finance Henry Musasizi, the loan is not affected by a freeze on fresh World Bank funding over the East African country’s Anti-Homosexuality Act.
Recall that on 8 August, the World Bank Group stated that no new additional funding would be presented to its executive board for approval. The total amount of committed funds to Uganda for this year is US$350 million from both IDA and the International Bank for Reconstruction and Development (IBRD), according to data on the World Bank website.
During the FY23/24 budget presentation on 15 June, the government expects an overall fiscal deficit of UGX7.1 trillion (3.5 percent of GDP), c. US$1.9 billion largely financed through external financing (net financing of UGX5.3 trillion or c. US$1.4 billion) and domestic support (net domestic UGX1.8 trillion or US$0.4 billion). We expect external development financing to continue in Uganda for approved projects.
