The loan will boost internet services in Uganda
The World Bank has yet again approved a loan worth US$200 million (about Shs708.918bn) to help Uganda expand access to high-speed and affordable internet, improve efficiency of digitally enabled public service delivery, and strengthen digital inclusion in the country.
The loan will be implemented under the new Uganda Digital Acceleration Project-GovNet (UDAP-GovNet) that will see the extension of 1,000 km of the national backbone fiber infrastructure, an additional 500 km of fiber optic network links between towns, mobile broadband connections for 900 government administrative units and service centers in underserved areas, and 828 Wi-Fi hotspots in select locations to support access to online services among rural and peri-urban, underserved and unserved communities.
Announcing yet again another loan facility, Tony Thompson, World Bank Country Manager for Uganda said that transforming Uganda’s digital infrastructure is an urgent necessity for post-COVID-19 recovery.
“We look forward to the time when all citizens can access high-quality and low-cost internet, public services online, a digital economy driving growth, innovation and job creation,” said Thompson.
According to the details availed, of this US$200m, US$140 million will be the loan repayable from the International Development Association (IDA) also known as World Bank while the remaining US$60 million is a grant that will support the implementation of the governments’ flagship initiative, GovNet, which contributes to the objectives of Digital Uganda Vision and the Digital Transformation Program under the National Development Plan III.
The funds will be used to develop shared platforms for ministries, departments, and agencies to efficiently deliver digitally enabled public services to citizens and businesses throughout the country.
World Bank justified the loan approval on grounds that the digital platforms will create the foundations for better resilience and economic recovery by boosting the effectiveness of government e-services that can be delivered remotely, in a paperless and cashless manner, reducing the need to travel for government services.
The American majority owned lender added that the expanded connectivity will also strengthen the digital inclusion of host communities and refugees by improving the availability of digital infrastructure and tackling demand-side factors like digital skills, affordability of internet connectivity, and accessibility of digital services.
“The project will be intentional about gathering beneficiary feedback about priority e-services,” says Raman Krishnan, Task Team Leader, World Bank. “It will also identify and develop digital solutions that are inclusive for people with low digital skills and literacy levels, to encourage their full participation in the digital economy.”
This loan comes at the time the International Monetary Fund (IMF) revealed on Tuesday that it had reached a deal when approved would see the international money lender give Uganda a loan worth US$1Bn equivalent to Shs3.544Trn.
As at December 2020, Uganda’s total public debt stock, was recorded at USD17.96Bn equivalent to Shs65.83Trn, an increase from USD13.3billion equivalent to Shs49.0Trn at end December 2019.
Of this debt, external debt is equivalent to USD11.67 Billion about Shs42.6Trn whereas domestic debt constituted 35.02%, equivalent to USD6.29 Billion about Shs22.9Trn.
