This archive report was first published on 2 July 2020.
On July 2, 2020, the World Bank announced a $300 million budget to support Uganda's efforts in fighting the coronavirus pandemic.
The funds, equivalent to approximately Sh32 billion, will be used to boost the government's capacity to prevent, detect, and treat the virus, protect the poor and vulnerable population, and support economic recovery.
Uganda's economy has been severely impacted by the pandemic, with the country's overall economic growth projected to decline to a low 3-4 percent in the financial year 2020/2021, down from an earlier projected 6.3 percent.
According to the World Bank, the pandemic has pushed an additional 3.15 million citizens into poverty, bringing the total number of Ugandans living below the poverty line of less than two dollars a day to 8.7 million.
World Bank Country Manager for Uganda, Tony Thompson, stated, '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.'
Uganda has committed to undertaking policies that directly support low-income households in exchange for the financing. The country plans to inject money directly into cash-for-work labor-intensive programs to benefit half a million people and expand support to the vulnerable senior citizens grant for empowerment (SAGE) program to cover an additional 71 districts.
