Government is set to ask Parliament approve a loan request of $190 million to support the national budget as a result of shortfall of that has been caused by the deadly COVID-19.
Presenting a statement on the economic impact of COVID-19 in Parliament yesterday, the minister for Finance Matia Kasaija said the country has started experiencing shortage in supply of goods such as medical equipment, smart phones among others as a result of the virus
Kasaija said the growth projection of the country’s economy is likely to be reduced from 3.9 to 2.4%.
He said the demand for travel has seriously been affected, oil prices have increased and the tourism sector has taken a big hit.
The $190 million loan, Kasaija said, will go a long way in halting the depreciation of the shilling while ensuring that the supply of essential goods is not interrupted.
According to the minister as a result of coronavirus, more than 770,000 Ugandans may slip into poverty while a number of people may lose jobs.
He advised Ugandans to use the coronavirus crisis as a springboard to innovate and reduce on our dependence on imports.
He said there is likely to be a slowdown in the implementation of some government projects like roads, constructions among others because many are undertaken by Chinese firms.