By Leonard Kamugisha Akida and Odwori Brian
KAMPALA
The Uganda People’s Congress (UPC) has cautioned the government to be frugal when dealing with public expenditure after the World Bank shocker to freeze new public loans for Uganda.
On August 8, the World Bank Group issued a statement announcing it was suspending new public financing to Uganda following the enactment of the Anti-Homosexuality Act, 2023. The World Bank said that the new law contradicts its moral values of eradicating poverty without discrimination.
UPC which has joined hands with many Ugandans and the government to agitate for the respect of country’s sovereignty, cultural values and norms from the World Bank and other international bodies lending to Uganda and other African states.
Sharon Arach Oyat, UPC spokesperson says that although the government should tighten her financial nut, there should be dialogue between the government and the bank.
“UPC feels that there are real grounds for dialogue and constructive engagements between the government of Uganda and World Bank without compromising our norms and values,” she said
Alternatively, Arach asked the government to expedite the signing of the Islamic Banking Bill 2023 into law to provide friendly loans than over relying on donor money.
”Over dependency on foreign funding if not checked or restricted can lead to a country being donor driven,” Arach said
The Ugandan parliament passed legislation on June 27 to authorize Islamic banking in the country. The law now goes to the president for assent. The parliament also passed legislation amending tax laws to accommodate Islamic finance activities.
Once assented to by the President, financial institutions and individual players will now introduce and participate in Shari’ah compliant banking, including insurance (takaful) and re-insurance (re-takaful).
