The International Monetary Fund (IMF) has approved a $1 billion three-year loan facility to Uganda under the Extended Credit Facility (ECF). However, this is still subject to approval by IMF management and its executive board.
The funds will help Uganda recover from the pandemic that has reduced income and pushed 30 million across the continent into “extreme poverty.” Its fiscal deficit has also widened considerably, pushing the public debt to close to 50% of GDP by June 2021 and increasing financing costs.
The government predicted a budget gap of 9.7% of gross domestic product for the year through June.
Last year, the Fund loaned Uganda over $490 million.
The loan to Uganda comes after the IMF staff on May 27 agreed to provide $1.5 billion to DRC over the next three years, and following the Fund’s provision of more than $15 billion for sub-Saharan African nations since the pandemic hit the region in 2020.