Africa-Press – Uganda. The Minister of Relief and Disaster Preparedness, Hillary Onek, has disclosed that the government intends to borrow Shs1.059 trillion from the World Bank to provide support for refugees in Uganda.
Recently, the State Minister for Finance, Henry Musasizi, confirmed that the government is currently in negotiations with the World Bank to address the suspension of funding to Uganda following the passing of the Anti-Homosexuality Act.
Musasizi assured Ugandans that these negotiations are progressing positively.
“We are actively engaged in negotiations with the World Bank and have made significant progress.
They have outlined specific benchmarks for us and expressed certain concerns, all of which we are diligently addressing by providing requested information and assurances,” Musasizi stated.
Onek also informed Members of Parliament that the government is negotiating with the World Bank for an additional amount of US$280M (Shs1.059 trillion) to be allocated to specific districts such as Bundibugyo, Amuru, Kisoro, and Kitgum in order to enhance the provision of necessary services for the growing refugee population.
Currently, Uganda spends Shs4.944 trillion annually on refugee response, with a significant amount, Shs4.019 trillion, allocated towards the purchase of firewood to enable refugees to cook their food.
According to research reports from the Food & Agricultural Organisation (FAO), World Bank, and World Food Programme (WFP), 97% of refugees, totaling 1.3 million refugees, rely on firewood, with each refugee consuming 1.6Kgs per year valued at Shs5000 per day.
The Bank of Uganda reported to Parliament last week that the Ugandan shilling remained relatively stable until the World Bank’s announcement of the suspension of new loans due to the enactment of the Anti-Homosexuality Act.
“Following the World Bank’s decision not to provide new loans to Uganda due to the Anti-Homosexuality Act, we observed a depreciation in the exchange rate, with the shilling dropping from approximately 3650 to nearly 3750 within two days,” noted Michael Atingi-Ego, Deputy Governor of the Bank of Uganda.
He further explained that the exchange rate has since remained at this level, causing pressure and uncertainty surrounding the currency, which can be attributed to the passagey of the Anti-Homosexuality Act.
In August of this year, the World Bank Group announced a pause in public financing to Uganda in response to the country’s adoption of the Anti-Homosexuality law, which criminalizes homosexual activities.
The World Bank emphasised that Uganda’s Anti-Homosexuality Act is contradictory to the organization’s core values, leading to the suspension of new public financing until further assessments can be conducted.
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