Donors set conditions for aid to Uganda

Uganda’s donors have set minimum conditions, including eliminating corruption, that will determine their continued financial support to the government over the next three years, the World Bank said.
Uganda relies on external support for about 40 % of its public spending. The funds are given mainly by the EU and multilateral donors such as the World Bank, the African Development Bank and the International Monetary Fund.
“To ensure that the resources provided by development partners are utilized for their intended purpose, the Joint Assessment Framework contains actions to combat corruption,” the World Bank, which is the permanent chair of a group of the nation’s main donors, said in a statement late yesterday.
Other conditions include macroeconomic and fiscal policies that will create the right environment for a balanced economic growth, a transparent process of preparing and implementing the government’s budget and a commitment to end poverty.
Annual assessments of the government’s effectiveness in use of donor funds will be carried out every November, the statement put out late yesterday said.
“The donors will be assessing compliance every November and will take action to either reduce or cut or increase, depending on the results of the assessment,” said Steven Shalita, senior communications specialist at the World Bank Uganda Country Office.