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It’s a new day and a lot is happening in Uganda besides the theatre of drama in FDC, yesterday Uganda made headlines world wide after World Bank one of it’s financing agencies suspended any more funding to Uganda due to the Anti-Homosexuality act which Museveni signed into law on 29th May 2023.
The new law which is popular at home received heaps of praise but condemned at the international level especially in the west who say it’s barbaric and meant to infringe on rights of people. These further threatened to stop funding to Museveni’s government since their key personnel running their funded projects in Uganda were at risk.
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In a statement issued by the world bank, it suspended any further financial assistance and requests to Uganda over the Anti- homosexuality law which they say goes against their values and it’s discriminative in nature and would only resume funding if it’s repealed or quashed or it’s implementation blocked by the courts of law.
The new law causing trouble to Uganda brings tough punishments and fines to those convicted including death penalty, huge fines and life imprisonment to those found guilty.
Uganda’s Anti-homosexuality Act fundamentally contradicts the World Bank group’s values. We believe our vision to eradicate on a livable planet can only succeed if it includes every one irrespective of race, gender or sexuality. This law undermines those efforts. Inclusion and non-discrimination sit at the heart of of our work around the world”-World Bank statement reads in part.
Amidst mixed reactions and speculations on what the Museveni government will do since it chokes on debts which are now beyond it’s annual budget and gets funding from donors, grants, aid to withstand it’s huge budget in key sectors like Governance, Education, Health, Agriculture, Defense among others. This is because the implementation of the new law has since started and court despite being petitioned by the Andrew Mwenda’s has not blocked it’s implementation nor started hearings of the same to shoot it down like before in 2014.
“No new financing to Uganda will be presented to our Board of Executive Directors until the efficacy of additional measures has been tested”-reads further the World Bank Statement.
Uganda’s public debt is set to increase from the current 48.4 percent to 53.1 percent in the financial year 2023, according to the estimated budget for the year 2023/24 released by the Ministry of Finance. According to the Budget Framework paper, the stock of public debt increased from US Dollars 19,54 billion in June 2021 to US Dollars 20.99 billion in June 2022.
Amidst the speculations on what lies ahead, president Museveni has also issued a statement regarding this suspension of funding from World Bank. The president who in his statement some of the loans picked from lenders were being got behind his back and when they were unnecessary and ended up being misused says he now took over approval of loans and no loan can now be got without his approval.
In the statement, president Museveni says he received a call from an official of World Bank who informed him about the suspension of any more funding to Uganda as a result of the stringent anti-homosexuality act 2023 which he signed into law. But never the less the president says Uganda will develop with or without loans.
World Bank, International Monetary Fund (IMF), China’s Exim Bank, African Development Bank, Local Banks are among the financers of Museveni’s government and it’s where his ministers run to in a bid to collect loans to cover budget deficits.
“Last night an official from the World Bank rang me to alert me about the statement from the Bank regarding the suspension of any new requests from Uganda for loans. I want to inform everyone, starting with Ugandans, that Uganda will develop with or without loans”-says Museveni in a statement.
Museveni who in recent years has been leaning so much on the East especially China and Russia has indicated that even there’s need for borrowing, they’re a number of alternatives where his government can run to to get funding and loans.
“As a matter of fact, many of the loans in the past, were being carelessly entered into by officials behind my back when they were completely unnecessary. That is why some years ago, i put down my foot and forbade agreeing to any loan before my approval. Hence, we are now borrowing less and cautiously. Yet our economy is growing, other global challenges such as the war in Europe, Corona, etc.., not withstanding.
If there is absolute need for borrowing, there are a number of Non Bretton Woods sources from where we can borrow”-says Museveni in a statement.
President Museveni also says as long as Uganda starts producing it’s oil soon, the borrowing will greatly reduce and there will be no such conditions of allowing homosexuality and other vices in order to be given loans from the western powers.
“Moreover, our first oil will start flowing by 2025. That will be an additional source of revenues and also financial flow into the economy”-Museveni further opines in his statement.
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