Zimbabwe Nurses Association: ZNA Position on Corona Virus (25.03.2020)

Uganda: Kasaija plans to borrow $190m extra to cover a budget shortfall within two years!

Someone please call 911, yeah yeah (pick up the phone yo)

Tell them I just got shot down, tell them I just got shot down

And it’s piercin’ through my soul (I’m losin blood yo)

Feel my body gettin’ cold, oh, so cold

Someone please call 911 (can you do that for me)” – Wyclef Jean ft Mary J. Blige – ‘911’ , April 2000

In an election year in the Republic, the economy usually runs loose. The State House lacks suddenly funds, the President needs more and so fourth. That is standard procedure. However, on the 19th March 2020 Matia Kasaija has now announced that the plans to borrow USD 190 million to cover a short-fall of funds, because of the COVID-19 or Coronavirus.

This is deemed fit because of the pandemic and the financial disruption it has. Not that the Republic is alone in this. Other big states and plenty in the Western hemisphere is putting up packages of economic stimulus to salvage the economy because of it. So, the sentiment is understandable. However, the Ugandan republic is already heavily indebted and every single development project of late is covered by debts and debt relief. Not like its sustainable to take up nearly USD 200 million to suddenly boost a dying economy.

Here’s the quotes:

The low activity in industry and services sectors will result into loss of jobs further leading to a decline in economic growth and an increase in the level of poverty. The number of people that could be pushed into poverty is estimated at approximately 780, 000” (STATEMENT ON THE ECONOMIC IMPACT OF COVID.19 ON UGANDA,, 19.03.2020).

To deal with the financing gap in the Government budgets for FY 2019/20 and FY 2020/21, my Ministry will seek for a budget support loan on concessional terms worth US$ 100 million for FY2019/20 and US$ 90 million for FY202021 from the World Bank” (STATEMENT ON THE ECONOMIC IMPACT OF COVID.19 ON UGANDA,, 19.03.2020).

It’s seems like they have the perfect cover for rising debt. They need to do something, because lots of industries are shut-down or silenced by the lack of tourism and foreign exchange. Also, the diaspora is hit and can therefore, not remit enough funds to boost the economy either.

The MoFPED really want to stain the economy more. To quote the IMF:

““Rising debt puts more strain on the budget as more resources need to be allocated for interest payments. One shilling paid for debt service is one shilling less going to a school or a health clinic. The current ratio of interest payments to revenue is comparable to what countries with high risk or in debt distress typically face” (IMF – ‘Uganda’s Economic Outlook in Six Charts’ 09.05.2019).

By borrowing close to USD 200 million is really pushing the envelope. As the interests needs to be served, the grace period might be short, as the state of finances across the board is souring. Therefore, the state will not get to favourable terms with this. The World Bank also has all other states begging for funds and possible grants to push the set-back of the pandemic. Not like Uganda is the only one crying out loud and applying for money.

This money will not be free money, but tainted money. This sort of funds is needed, because the state wasn’t planned nor had the capacity to have a rainy-day fund. The Petroleum Fund has already been raided and therefore, couldn’t come in handy now. This is the mismanagement, your already in a negative spiral with more and more loans. This is just adding two more and they are big. That will cost in the long run. It might salvage today and tomorrow. However, it will scar the next generation. Unless, someone is forgiving like these entities was in the early 1990s. Before the state again took up huge loans to cover deficits.

This is just the way it is now. Not a good look. Understandable in the growing crisis. However, that shouldn’t undercut the possible pain it will bring in the future. Save the day, but cause more harm tomorrow. Peace.

Zimbabwe: Press Statement by the Chief Secretary to the President and Cabinet on the Appointment of Chief Executive Officer of Zimbabwe Investment and Development Agency (ZIDA) – (24.03.2020)

Zimbabwe: Ministry of Health and Child Care – Coronavirus (COVID-19) Update (24.03.2020)

Opinion: World Bank shouldn’t punish countries with a revamped SAPs

Countries will need to implement structural reforms to help shorten the time to recovery and create confidence that the recovery can be strong. For those countries that have excessive regulations, subsidies, licensing regimes, trade protection or litigiousness as obstacles, we will work with them to foster markets, choice and faster growth prospects during the recovery“ (Remarks by World Bank Group President David Malpass on G20 Finance Ministers Conference Call on COVID-19, 23.03.2020).

It is like the head of the World Bank didn’t learn anything from the past. His just saying he will re-issue old programs, which wasn’t effective. Unless, his earning his fortunes from the “Washington Consensus”. Because, instead of being able to make functional states, these states who are already in the dire need of loans and grants. Now, would need the IMF and WB if they got into a new period of Structural Adjustment Programs (SAPs). Instead of trying to rebuild and actually make them work. His instead dismantling the institutions they do have and lack of fiscal support to build more.

This is reckless and irresponsible. It is disrespectful and a disgrace. That the World Bank didn’t learn from its mistakes and the reason for the peril of plenty of states. Since they drank the kool-aid and followed the plans of the past. Since they needed the funds and grants to be able to function as it was. Nevertheless, we needs to bring back more ills and more weakening of states, because that is how you create growth. More privatization and more elitism. Since, that is the medicine to the poverty and lack of social security. This is what I read from the man.

This is the lesson he never got, maybe because it didn’t hit home:

The past two decades of World Bank and IMF structural adjustment in Africa have led to greater social and economic deprivation, and an increased dependence of African countries on external loans. The failure of structural adjustment has been so dramatic that some critics of the World Bank and IMF argue that the policies imposed on African countries were never intended to promote development. On the contrary, they claim that their intention was to keep these countries economically weak and dependent. The most industrialized countries in the world have actually developed under conditions opposite to those imposed by the World Bank and IMF on African governments. The U.S. and the countries of Western Europe accorded a central role to the state in economic activity, and practiced strong protectionism, with subsidies for domestic industries. Under World Bank and IMF programs, African countries have been forced to cut back or abandon the very provisions which helped rich countries to grow and prosper in the past(Ann-Louise Colgan, Hazardous to Health: The World Bank and IMF in Africa, Africa Action, April 18, 2002 ).

So, why does this man want to punish the countries after the pandemic? Why scale the institutions and the states to salvage funds from the World Bank? Instead of helping them to increase and ensure better state functions. He wants them to take another round of Structural Adjustment Programs. Which has caused so much ills in the first place. More austerity and less investment in the states.

It is like the beacon was never set and the idea of it takes money to make money. That your only getting more with less. While the states will live on austerity, the reality is that the donors, the aid organization and multi-national organizations will never leave. The circle continues and we never get to build. There will always lack the need and the usage of foreign projects will only be short-term temporary measures, but not systemic relief. Which should be the basis for what the World Bank want to do.

Unless, they want states to hooked and also in need of them. Because, the SAPs creates this and make them addicted too it. Instead of actually becoming independent and also self-sufficient, which should be the goal of any developing agency. That is if they were sincere and wanted states to develop. Not only patch the hurt and move-on. Instead of building it, brick by brick. Peace.

Zimbabwe: Ministry of Health and Child Care – Coronavirus (COVID-19) Update (22.03.2020)

Zimbabwe: Ministry of Health and Child Care – Coronavirus (COVID-19) Update (21.03.2020)

Zimbabwe: Ministry of Health and Child Care – First Case of COVID-19 in Zimbabwe (20.03.2020)

Zimbabwe: ZLHR, Zimbabwe Human Rights NGO Forum and ZADHR – Statement on Coronavirus State of Preparedness in Zimbabwe (19.03.2020)

Zimbabawe: President Emmerson Mnangagwa – Press Statement – New Dates for Closing of Schools and Teritary Institutions (19.03.2020)