06
the program to avoid distress.
As part of its safeguard measures, the
World Bank provided both technical
and financial support for high quality
analytical work to inform these policy
reforms and give the program a solid
evidence-base on which to anchor
implementation. Through its other
projects, the World Bank would maintain
regular implementation support by
providing policy advice and technical
assistance to the institutions involved
in the implementation of the reform
program.
According to the World Bank, the funding
program supported the Government
to expand and improve the targeting
of social safety nets to the poor and
vulnerable. These included providing
cash-for-work to informal sector workers
directly impacted by the pandemic in
the main urban areas and the floodaffected districts; increasing the number
of beneficiaries under the current
senior citizen grant by rolling it out to 71
districts; establishing a national single
registry for beneficiaries of safety net
programs in the near future; the use of
an e-Voucher scheme to enable better
targeting of smallholder farmers, the
majority being women, to access high
quality inputs, seeds and fertilizers
to boost agriculture productivity and
incomes.
16
Government secures loan
funding from IMF to fight the
pandemic and drive recovery.
On June 28, 2021, the International
Monetary Fund approved
a 36-month loan arrangement under the
Extended Credit Facility (ECF) for Uganda
in an amount equivalent to US$1 billion to
support post-COVID-19 recovery efforts
and the Government’s plan to increase
households’ incomes and inclusive
growth by fostering private sector
development. This was a budget support
loan that carried zero-interest, with a
grace period of 5½ years, and a final
maturity of 10 years. This followed the
Fund’s earlier emergency support loan
to Uganda under the Rapid Credit Facility
(RCF) in 2020 of which US$491.5 million
was disbursed to meet urgent balanceof-payments needs (70 percent) with the
remainder meeting fiscal needs arising
from the COVID-19 outbreak through the
Uganda Development Bank.
To ensure that the funds were used for
their intended purposes, government
committed to report on the COVID-19
expenditures; publish on its websites
large procurement contracts related
to COVID-19 spending; and undertake
an independent audit of COVID-19
expenditures. The IMF noted that
the authorities had made significant
progress in publishing information on
audits and the use of COVID-19 funds,
Research on the Influence of International Financial Institutions
on Uganda’s COVID – 19 Recovery Agenda