The IMF approved Ksh52B ($491.5million) disbursement to Uganda under the Rapid Credit Facility (RCF) to address the urgent balance-of-payments and fiscal needs.
A statement on the IMF website said that Uganda accessed 100 percent of its RCF quota needed to finance the health sector, social protection, and macroeconomic stabilization measures. COVID19 has hit key sectors such as tourism, transport, construction, manufacturing, and agriculture. In addition, the pandemic has added to the challenges posed by heavy rains in early 2020 and the ongoing locust invasion.
The weakening economy has experienced pressure on revenue collection, expenditure, and reserves.
Ugandan authorities have taken measures to protect their citizens such as; 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.