Projects worth 1.8 billion USD approximately shillings 6.7trillion are likely to have caught strays from the cross fire between government of Uganda and the World Bank following its statement in which the bank promises to halt any new project financing and review of ongoing projects citing concerns of discrimination and passing of the Anti-Homosexuality Act.
Economic experts warn that the bank’s actions could be injurious to the Ugandan economy given that there is no plan out of the hole until her oil and gas resources start flowing which is not guaranteed even in 2025.
The Washington DC based development partner, the World Bank Group, in a statement dated August 08, 2023 raised concerns about Uganda’s anti homosexuality law terming it as discriminatory and contradictory to the Word Bank Values.
The bank now says that, “No new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested. Third-party monitoring and grievance redress mechanisms will significantly increase, allowing us to take corrective action as necessary.”
And like he saw it coming, President Yoweri Museveni, responded with a hand-written letter whose interpretation has been a subject to debate in the public spectrum.
In his letter Museveni scoffed at the Bank saying that “Uganda can develop with or without the loans. Museveni also maintains that it is unfortunate the World Bank and other actors want us to coerce us into abandoning our faith, culture, principles and sovereignty using money.”
He concluded BY saying that, “We are continuing to talk to the World Bank so that they, and we avoid this diversion if possible”
Dr. Fred Muhumuza, is an economic expert, who has worked closely with the world bank and the government of Uganda.
He notes, “Available data shows that the bank has 2,711 active projects running in Uganda, with 798 projects in the pipeline all burgeoning in billions of dollars.”
Some of the projects that will henceforth go for review, are the 355 million USD for making agriculture more resilient, the 566 Greater Kampala Metropolitan Area Urban Development programme, the 217 million USD for women economic empowerment.
In the past, the world bank’s commitment and support to Ugandan projects span through a number of GFX sectors with 157million USD in Environmental sustainability, 208million USD in Digital development, some 832 USD, over 400 million in finance and innovation sector, over 300 million USD in transport, 400million USD in water and sanitation, over 200 million USD in education while over 1.1 billion USD in urban resilience and land among other areas.
Even with this government officials say that there is no need to worry about anything after all, dollars from the oil and gas sector are about to flow into the Uganda
While worries about what happens to the already sick health sector, a dilapidated transport system in the upcountry areas, and weak local governments systems, the hanging thread of hope lays in the last statement of Museveni’s dossier that points to talks.