This archive report was first published on 11 May 2020.
On May 6, 2020, the International Monetary Fund (IMF) approved a $491.5 million disbursement to Uganda under the Rapid Credit Facility to address the country's urgent balance-of-payments and fiscal needs.
The IMF's Rapid Credit Facility is designed to provide emergency financing to countries facing an urgent balance-of-payments need due to the COVID-19 pandemic. Uganda accessed 100 percent of its RCF quota, which will be used to finance the health sector, social protection, and macroeconomic stabilization measures.
The COVID-19 pandemic has had a significant impact on Uganda's economy, particularly in key sectors such as tourism, transport, construction, manufacturing, and agriculture. The pandemic has also added to the challenges posed by heavy rains in early 2020 and the ongoing locust invasion.
As a result, the Ugandan economy has experienced pressure on revenue collection, expenditure, and reserves. To mitigate the effects of the pandemic, the Ugandan authorities have taken measures to protect their citizens, including increased healthcare spending and strengthening social protection to the most vulnerable.
The Bank of Uganda has also stepped in to reduce interest rates and provide liquidity to the banks, helping to alleviate the economic pressure.
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