Why USA suspended $10m COVID-19 relief to Uganda

The US government has blamed Uganda for blocking a $10m (sh37b) direct cash transfer programme meant to support Ugandans affected by the effects of the COVID-19 pandemic.

On Friday, October 30, the US Agency for International Development (USAID) announced the termination of its planned $10m relief grants to poor Ugandans.

This is partly because the approval of the funds hit a hitch after the second review of the funders, leading to the project's suspension.

"While deeply disappointed by the reluctance of some elements within the Government to support this highly effective cash transfer programme, the US remains committed to supporting the Ugandan people through this challenging time," reads a statement by the US Embassy in Uganda.

The statement said USAID and GiveDirectly worked closely with government counterparts to successfully vet the programme through the Cabinet and ultimately to launch the programme publicly as part of the Lira City celebration in August.

"Despite the thorough assessment and approval by (US) Cabinet, in September, the NGO Bureau announced an additional review of GiveDirectly's activities in Uganda, resulting in the programme's suspension," adds the statement.

"The programme has not been authorised to resume and no assurances have been provided that authorisation by the US government is forthcoming. In light of this indefinite suspension, it is now unlikely that the programme will meet its original objective, which was to prevent COVID-related economic backsliding of the most vulnerable Ugandans.

Therefore, we are obligated contractually to terminate the programme permanently." Under this programme, 120,000 Ugandans across six cities were set to receive cash transfers of sh100,000 each month, for three months.

By September this year, the US Embassy says 47,128 Ugandans were enrolled in the programme. Since the outbreak of the COVID-19 pandemic, the US has provided technical assistance and more than $47m (sh174b) to help Uganda meet urgent needs in its COVID-19 response, the statement adds.

According to the statement, the US' COVID-related assistance includes approximately $10m for a direct cash transfer programme launched by USAID in August in partnership with the Ministry of Local Government and the Ministry of Kampala, through the international non-profit, GiveDirectly.

It adds: "The goal of this programme was to follow international precedent for economic stimulus by providing cash directly to individuals and families who need it most. Specifically, the programme intended to support Ugandans who lost livelihoods as a result of COVID-19, who were at risk of food insecurity and faced serious reductions in household nutrition."

However, the US Embassy said: "We are mindful that ordinary Ugandans continue to suffer from the socioeconomic impacts of the COVID-19 pandemic and that they could greatly benefit from this emergency cash Karooro Okurut assistance, which has been proven both internationally and within Uganda as a powerful development tool to transfer stabilising economic relief to recipient communities."

"We deeply regret that the 120,000 Ugandans identified to participate in this programme, along with their surrounding communities, will now not have the opportunity to benefit from it," the statement added.

GOVERNMENT'S RESPONSE

The Minister of General Duties in the Office of the Prime Minister, Mary Karooro Okurut, who is also the chairperson of the fundraising sub-committee National Response Fund towards COVID-19, said it was unfortunate that the programme was suspended.

"It is a directly funded project by USAID to beneficiaries and the money was not meant to come through our fund."

The health ministry's Permanent Secretary, Dr Diana Atwine, also confirmed that the money was not meant to come from Government, but through the project partners, to the people.