France cancels Uganda’s debt, provides more aid

By Anne MugisaFRANCE yesterday cancelled a sh3.6b (2.3m Euros) debt owed by Uganda and gave another sh5.6b grant to Kampala City Council (KCC) for the City’s sanitation programme.The French government said Uganda should channel 82% of the written off debt to HIV/AIDS programmes of the Ministry of Health. The agreement for the debt cancellation was signed yesterday by Uganda’s Minister of Finance Gerald Ssendawula and the French Ambassador, Jean-Bernard Thiant. Ssendawula also signed the KCC sanitation grant with the Nairobi-based regional Director of the French development agency, Agence Francaise de Development (AFD), Martha Stein-Sochas.The Governor of the Bank of Uganda, Tumusiime Mutebile, and the Kampala Mayor, John Ssebaana Kizito, attended the signing at the Ministry of Finance boardroom.Thiant said France is increasing its waiver of Uganda’s debt to it from 18% to 100%. He said the total amount forgiven will be approximately sh16.7b (10.7m Euros) over the coming years.He said the funds would be provided in the form of budget support within the Poverty Action Fund earmarked for the Ministry of Health.Ssendawula thanked the French government for the debt waiver and the grant.On the Kampala sanitation grant, AFD is contributing 3.8m Euros while KCC and the Uganda Government would contribute 0.8m Euros each to make the total 5.4m Euros. The project is expected to take 30 months and will commence mid next month.