The government has received an emergency loan of USD 491.5 million (about Shs1.8 trillion) from the International Monetary Fund to boost its fight against covid-19 and cushion the economy from the impact of this pandemic.
Uganda’s economy has been severely hit by the COVID-19 pandemic and, in particular, such key sectors as; services tourism, transport, construction, manufacturing and agriculture.
According to a statement by IMF, “the weakening economic conditions emanating from the Covid-19 pandemic have put significant pressures on revenue collection, expenditure, reserves and the exchange rate, creating urgent large external and fiscal financing needs. ”
The fund is now confident that the emergency assistance under its Rapid Credit Facility will catalyze additional support from the International community to finance the health, social protection, urgent balance of payments and budget support needs of Uganda arising from the COVID-19 outbreak.
IMF has meanwhile vowed to follow up and ensure the emergency funds are not misused.
Bank of Uganda has since reduced interest rates and provided liquidity to safeguard financial stability while maintaining exchange rate flexibility.
Uganda as of today has 100 cases of covid-19 with 55 recoveries and no deaths.