The International Monetary Fund (IMF) Executive Board has approved two reviews of a financing agreement with Uganda that allow for the immediate release of about $240 million (about Shs870b) to the East African country.
The completion of the combined 2nd and 3rd reviews allowed an immediate disbursement equivalent to SDR 180.5 million, about US$240 million, bringing the aggregate disbursement-to-date to US$625 million.
IMF Deputy Managing Director, Bo Li, says that Ugandan authorities remain dedicated to their economic program amidst a challenging environment.
“Most quantitative targets were met in 2022. Six of the twelve structural benchmarks due between March and December 2022 have been completed. A structural benchmark on the asset declaration regime was converted into a prior action for the review and has been met. Sound program implementation in the period ahead remains important to ensure economic resilience and support the country’s social and developmental objectives,” Li said in a statement released by IMF.
The IMF said the Executive Board also granted a waiver of non-observance of a performance criterion on the stock of net international reserves of the Bank of Uganda. The Fund reiterated December forecasts that Uganda’s economy will grow by 5.3% in the 2022/23 fiscal year starting last July, down from a 6.0% growth forecast issued in March 2022.
The Ministry of Finance Planning and Economic Development projects economic growth for 2023/24 will be 6%, helped by increased activity in oil sector construction, growth in regional trade, and a rebound in agriculture.