Uganda to receive $120m from IMF

Uganda is set to receive $120 million from the International Monetary Fund (IMF) under the Credit Extended Facility (ECF) agreement.

This brings the aggregate disbursement under the ECF arrangement to about US$750 million.

The immediate disbursement follows the completion of a fourth review under the Extended Credit Facility (ECF) to the tune of $1 billion approved in 2021 by the IMF board.

The funds will support the near-term response to the COVID-19 pandemic and boost more inclusive private sector-led long-term growth.

Government is also expected to use the funds to make reforms on creating fiscal space for priority social spending, preserving debt sustainability, strengthening governance and reducing corruption, and enhancing the monetary and financial sector frameworks.

Despite repeated external shocks and tighter financial conditions, the IMF projects that Uganda’s economy is projected to grow by 5.5 percent in the financial year 2022/2023 and 6 percent in FY 2023/2024.

Written by Ritah Kemigisa