World Bank lifts funding ban as Deputy Speaker Tayebwa celebrates shs9.6t boost for Uganda.

Nearly two years after the World Bank Group suspended new funding to Uganda over the enactment of the Anti-Homosexuality Act, the international lender has lifted the ban.

Deputy Speaker of Parliament Thomas Tayebwa was among the first to welcome the development, congratulating the Ministry of Finance and the government for what he described as a major breakthrough for Uganda’s economy.

“Colleagues, I also wanted this opportunity to congratulate the Minister of Finance and the Executive in general on striking another deal with the World Bank because we have been handling loans, praying so much here for concessional loans,” Tayebwa said.

He added, “Yesterday, I also heard that our currency has been the best-performing currency in the region. It’s really when others are facing volatility, it’s something we needed to appreciate.”

Tayebwa further boasted about Uganda’s economic resilience, noting that the shilling had shown strength against the US dollar.

“As a country, I have been in some countries recently they are struggling with the dollar, but now here the dollar is struggling. The dollar is struggling against the Uganda shilling. I think they need our advice on how to handle this macro-economy,” he added.

In celebration of the lifted suspension, Parliament in October 2025 approved the government’s proposal to borrow $1.341 billion (about Shs4.7 trillion) from the World Bank and receive grants worth $328.3 million (Shs1.15 trillion) to fund several national programs.

The package will support key projects including Phase Four of the Northern Uganda Social Action Fund (NUSAF IV), Phase Two of the Development Response to Displacement Impacts Project (DRDIP II), the Uganda Learning Acceleration Program (ULEARN), the Uganda Cities and Municipalities Infrastructure Development (UCMID) Program, and the Strengthening Public Investment and Asset Management for Growth and Resilience Program (PIMPLUS).

Records before Parliament show that the total World Bank financing amounts to US$2.76 billion (approximately Shs9.6 trillion), broken down as $1.388 billion in loans, $325.8 million in grants, and US$449.1 million (Shs1.58 trillion) in counterpart funding from the Ugandan government.

Timothy Chemonges, Executive Director of the Centre for Policy Analysis (CEPA), described Uganda’s excitement as understandable but cautioned against overlooking deeper governance challenges.

“The World Bank lifting the ban signals the partial restoration of donor confidence after suspension of new funding. However, celebrating the World Bank’s return without addressing the structural issues that led to project delays, cost overruns, and poor absorption rates in the past will be premature,” Chemonges said.

He added that Uganda must focus on accountability and efficiency in the use of borrowed funds.

He further said, “The key issue is not access to money, but the efficiency and accountability in how it is used. While concessional loans and grants provide much-needed fiscal space, they also increase debt exposure, especially since the World Bank already tops Uganda’s list of creditors, followed by China.”