The East African nation, Uganda is on course to receive a whopping $120 million loan from the international body, IMF.
This loan is the fourth reimbursement from the global lender, IMF under the Extended Credit Facility (ECF), which started in 2021.
The total amount that has been disbursed so far is about $870 million, with the ECF programme designed to give out $ 1 billion to Kampala, the nation’s capital.
These funds are coming just 8 months after the last disbursement that took place 8 months ago, in June 2023.
From the reports received, the money has been utilized to help the nation recover from financial losses accrued from the impact of Covid 19.
However, it is worth noting that the good the funding is doing might be impacted by other crises in the economy such as the growing inflation rate.
Barring this negative impact, the IMF predicts an upturn in the Ugandan economy, saying that there will be an increase of 6% this year alone, with this value set to rise to 6.2% next year in June.
Also, the the inflation rate is predicted to fall to 3.1% as reported by the premier bank in Uganda. This meets the desired criteria for the year and is a significant reduction from 8.8% seen in the previous year.
