World Bank approves USD300 million budget support for Uganda to fight COVID-19Devdiscourse News Desk | Kampala | Updated: 01-07-2020 12:27 IST | Created: 01-07-2020 12:27 IST
The World Bank Board of Directors, on June 30 has approved a USD300 million budget support operation for Uganda to boost the Government's capacity to prevent COVID-19 according to a news report by The East African.
The Bank has announced Tuesday that the money will be used to boost the government's capacity to prevent, detect and treat coronavirus, protect the poor and vulnerable population, and support economic recovery.
It said Uganda's efforts to contain the spread of the novel coronavirus had battered the country's economy and were likely to send an extra 3.15 million citizens into poverty.
Already, about 8.7 million Ugandans are living below the poverty line of fewer than two dollars a day.
"The COVID-19 pandemic has had a significant impact on the economy and livelihoods. This budget support operation will enable the Government to provide vital services, social safety nets, and a more robust shock-responsive system for the long term; and the economy to recover faster," said Tony Thompson, World Bank Country Manager for Uganda.
The Covid-19 pandemic, flooding, and the locust invasion have hurt the economy, dimming Uganda's projected overall economic growth to a low 3-4 percent in the financial year 2019/2020 from an earlier projected 6.3 percent. To secure the financing, the Bank says, Uganda has committed to undertake a policy that directly supports low-income households.