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US aid cuts: Time to stop theft of money

 U.S. President Donald Trump speaks during inauguration ceremonies in the Rotunda of the U.S. Capitol on January 20, 2025 in Washington, DC. Donald Trump takes office for his second term as the 47th president of the United States. PHOTO/REUTERS

What you need to know:

  • The issue: Aid cuts.
  • Our view: The government must prioritize transparency and accountability while also exploring innovative solutions to drive economic growth and development.

The loss of US funding following President Donald Trump’s Executive Orders upon assuming office serves as a stark reminder of Uganda's vulnerability to external influences and should warn us to tighten our belts for the foreseeable future.

The US, having invested billions in Uganda over the years through its health, governance and humanitarian financing, has pulled the plug after President Trump chose “America first”.

Aid is given depending on the whims of the Washington government – and generally any other donor – and this shouldn’t be a shocker.

The freezing of US aid will undoubtedly have far-reaching economic consequences for us - and they have begun. Uganda relies heavily on foreign assistance to support its development programmes, and the loss of this funding will create significant shortfalls. The government must now explore alternative sources of revenue, such as checking domestic financial mismanagement. It means that this move should prompt Ugandan leaders to reassess their priorities and allocate funds wisely and check abuse of taxpayer money.

Uganda has for the last two decades on average been ranked among the 24 most corrupt countries in the world, according to Transparency International. 

According to the Inspector General of Government, Uganda lost at least Shs30 billion to corruption last year and registered approximately 2,377 graft-related complaints during the Financial Year 2023/2024.

Ms Beti Kamya, IGG, told this publication earlier this week that much of the money the government collects in taxes or borrows is lost to corruption. This is the cancer that is making us look West all the time, yet it is self-inflicted.

Yet while we are already crying over the prospective effects of aid cuts, it is prudent to bring back the discussion on foreign aid and we ought to do about it - especially the political will. 

Uganda's over-reliance on aid has long been a topic of debate for decades yet we don’t do anything to stem it. The current situation presents an opportunity for the country to re-evaluate its development strategy, focusing on self-reliance and diversification. By investing in domestic industries, promoting entrepreneurship, and developing strategic partnerships with other nations, Uganda can reduce its dependence on external aid.

As Uganda navigates this challenging period, it is essential that leaders engage in introspection and strategic planning. The government must prioritize transparency and accountability while also exploring innovative solutions to drive economic growth and development. By doing so, Uganda can emerge stronger, more resilient, and better equipped to determine its own destiny instead of paying too much attention to how events in far-flung capitals affect us.