The World Bank has announced the resumption of concessional financing to Uganda, pledging over $2 billion in new funding over the next three financial years. This marks a significant development following a nearly two-year suspension due to Uganda’s enactment of a stringent anti-LGBTQ law.
Ramathan Ggoobi, Uganda’s Permanent Secretary of the Ministry of Finance, confirmed that the funds will support infrastructure and development projects across critical sectors, including transportation, energy, information and communication technology (ICT), agriculture, and social protection. These investments are expected to bolster Uganda’s economic growth, which is projected to accelerate with the anticipated commencement of crude oil production in mid-2026. The government anticipates that this development will drive double-digit growth rates in the 2026/27 fiscal year.
The restoration of World Bank funding is a pivotal moment for Uganda, which had previously relied on more expensive domestic borrowing during the suspension period. The renewed support underscores the World Bank’s confidence in Uganda’s governance and economic policies. Additionally, Uganda is in discussions with the International Monetary Fund (IMF) for a new Extended Credit Facility, aiming to further stabilize and enhance its economic framework.
This development signals a positive trajectory for Uganda’s economic landscape, with the World Bank’s financial backing poised to facilitate significant advancements in infrastructure and development initiatives.
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