Government has received $367 million (about Shs955 billion) from the Islamic Development Bank (IDB) which will be spent in productive segment of the economy, State minister for Finance (General Duties) Fred Omach, has said.
Talking to Daily Monitor, the deputy Secretary to the Treasury, Mr Patrick Ocailap, said the $367 million is part of the external budget support which is already streamlined into the Budget. He also said it will be spent in productive areas of the Budget because that is the condition of the contributions.
According to Mr Ocailap, OIC member countries, especially those with experience in oil and gas business, are keen to consider partnering with Uganda to exploit its nascent oil and gas sector.
While hosting the secretary general of the Organisation of Islamic Cooperation (OIC), Mr Iyad Ameen Madani in Kampala on Tuesday, Mr Omach said the $367 million will boost the productive sector of the economy because that is where the priority of the government lies.
Areas of investment
He said: “We are preparing to work with IDB to ensure that people get out of poverty. And one way to do that is by putting to good use the $367 million we have this financial year from IDB.”
He continued: “We are going to invest the money in agriculture, infrastructure such as roads and power and education.”
Mr Madani said through IDB, the Organisation of Islamic Cooperation is willing to be a partner in agendas that empower member countries.
He, however, cautioned that its contribution in development effort is geared towards productive sectors, among them being development of agriculture.
He said: “IDB is our key arm. And we are mainly interested in supporting infrastructure, helping in areas of poverty eradication, and enhancing agriculture. For example we can make the most out of cotton, given that more than 80 per cent of cotton is produced in the OIC member states.”
The financial year 2014/15 will be financed by nearly 82 per cent of the budget that was internally generated. And the total external financing of the Budget amounts to Shs2.7 trillion, equivalent to 18.2 per cent of the total budget resources.
Budget support comprises of Shs69 billion while Project aid amounts to Shs2.6 trillion an increase of Shs116 billion over the financial year now ending—2013/14.