(Ecofin Agency) - Uganda will benefit from a $1.9 billion concessional loan program approved by the World Bank over the next three fiscal years.

According to Tony Thompson (pictured), the World Bank’s country manager for Uganda, the program will finance various projects in infrastructure, energy, healthcare, education, agriculture and water. The first tranche is expected to be disbursed in the next fiscal year beginning July 1, 2020, for an amount between $500 million and $600 million.

The Ugandan government is also planning to cut its budget by about 2% in 2020-21. While Uganda increased lending in recent years to finance the future development of its new oil field, the country's debt increased to $12.6 billion in June, raising concerns from the IMF and other observers. According to the Ministry of Finance, the country's budget deficit could widen in the current fiscal year from $2.3 billion to $2.8 billion.

Moutiou Adjibi Nourou