Uganda’s foreign exchange reserves will fall to a worryingly low level in the fiscal year starting in July unless it receives external funding then, the International Monetary Fund said on Friday.
The fund this month approved a $491.5 million loan to help Uganda cushion its economy against the impact of the coronavirus.
But without further external support, the forex buffer would drop below two months of imports. “This would be below the adequate level … and would leave the country in a vulnerable position,” it said.
The economy has taken a major hit during a lockdown implemented in March that is now being eased.
The fund forecast that tourism earnings and foreign direct investment in Uganda would fall by around half in both the current and coming fiscal years.
“FDI in Uganda has been largely related to the start of oil production, and that start date is now more uncertain,” the IMF said.
Uganda has 160 confirmed COVID-19 cases and no deaths, according to health
