Funding at stake: Here’s how much money Uganda risks losing if EU announces aid cuts

Uganda could lose funding to the tune of almost Shs3tn if the European Union (EU) resolves to cut aid to the impoverished East African land locked country.

Last week, the EU Parliament resolved to issue a raft of warnings against the Yoweri Kaguta Tibuhaburwa Museveni administration over allegations of human rights violations and electoral malpractices.

Members of the EU Parliament (MEPs) also agreed on sanctions for top government and security officials allegedly involved in human rights violation.

Despite Kampala downplaying the sanction threats, the EU has issued a number of conditions the Museveni administration has to fulfill to avoid aid cuts and further action.

The MEPs have called on calls on the EU “to take advantage of the political leverage provided by development aid programmes, namely budget support programmes, to enhance the defence and promotion of human rights in Uganda.”

Parliament noted that through the 11th European Development Fund, the EU is providing Uganda with EUR 578 million (about Shs2.6tn) to support the promotion of good governance, improve infrastructure, ensure food security and support agriculture.

The EU also gives Uganda EUR 112.2 million (about Shs498bn) as part of the EU Emergency Trust Fund for Africa. The MEPs observed that “security and development cooperation between Uganda and the EU, the USA and other countries is conducted in the context of the African Union Peacekeeping Mission in Somalia (AMISOM).”

The total amount of money the EU is considering to freeze is about Shs3.1tn.

This money is almost seven per cent of the Shs45tn 2020/21 budget.