World Bank shouldn’t make unilateral decisions that affect innocent Ugandans
What you need to know:
It should be noted that since 1961, the World Bank alone has funded Uganda with billions of dollars as loans and grants for purposes of promoting national social and economic development
On August 9, President Yoweri Museveni denounced the World Bank’s decision to halt any new loans to Uganda. The President vowed to find alternative sources of credit and assured Ugandans that his government would even do better without the loans.
He noted that most of the World Bank loans and aid packages are either of no value or are even antigrowth to the country. The President’s statement followed the World Bank’s statement of August 8, indicating that the bank had halted any new funding to Uganda because of the passing of the 2023 anti-homosexuality Bill.
However, in its statement, the bank reassured the Government of Uganda that ongoing projects amounting to the tune of $9.5b (Shs35 trillion) will not be affected by the bank’s decision. Unfortunately, the bank noted that there will be increased scrutiny of how the loans will be used in the implementation of the funded projects. For instance, the bank indicated that third-party monitoring and grievance redress mechanisms in the funded projects will significantly increase to enable the bank to make timely decisions as and when deemed necessary.
It should be noted that since 1961, the World Bank alone has funded Uganda with billions of dollars as loans and grants for purposes of promoting national social and economic development. Most of the funded projects have been in key sectors such as electricity, roads, education, health, clean water, agriculture, climate resilience and others. Currently, over 30 active World Bank-funded projects are ongoing while 13 projects are being negotiated. The over 30 ongoing projects are estimated to cost $9.5 billion (Shs35 trillion) while the 13 projects in process are estimated to cost $4.43 billion (Shs16 trillion).
Besides loans, Uganda also receives grants from the World Bank and other development partners. By December 21, 2022, the World Bank alone had given Uganda grants of over $204.6 million, of which the largest share of up to 85 percent was for human capital development where education, health, clean water, sanitation and others fall.
It is against the above background that Ugandans need to critically understand the implications of the World Bank’s decision and the President’s response where he pointed out one example of a loan of $800 million received by the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF). The ministry borrowed the loan for a period of 10 years to modernise the agricultural sector but the country gained nothing from the said loan. Instead, the President said that much of the $ 800 million was wasted on seminars and others by the government technocrats. In effect, the President informed the country that most of the World Bank loans are always wasted and therefore he cannot be bothered by the bank’s decision.
I call upon World Bank and the Government of Uganda to resolve the current misunderstanding and ensure that the loans are used for the benefits of all Ugandans. They should also ensure transparency and accountability in the selection, negotiation and implementation of the World Bank-funded projects. The President should also provide leadership to ensure that the acquired loans and grants are used well for the benefit of the citizens.
World Bank should work with the private sectors together with the government to ensure that funds for Uganda continue to help Ugandans access clean energy, especially off-grid solar energy services. The World Bank and other development partners should stop funding big dams like Bujagali and others funded by the Chinese such as Karuma and Isimba which are not benefiting the citizens due to high power tarrifs .
Olive Atuhaire, [email protected]
