Loans worth US $250 million approved by World Bank

The World Bank has approved two new loans to Uganda, worth US $250 million, to alleviate poverty and aid development in the country. A total of US $100 million will be spent on 18 districts in northern and eastern Uganda, where it will offer support to the very poor and to those affected by civil war, the Bank said in a statement. The money - to be spent on community development, peace building and conflict management initiatives - is aimed at helping the Ugandan government in its attempts to ensure that the north is able to "catch up" with the rest of the country in the development process. The remaining US $150 million will be spent on public sector reforms, including education, health care and water services as well as rural and agricultural development. World Bank figures show that about 35 percent of the Ugandan population lives below the poverty line. The average per capita income is only now approaching the level achieved in 1970, the Bank said. Despite a "clear and impressive" decline in poverty between 1992 and 1997, the Bank said, significant regional disparities still remained. The northern region remained the poorest, due to the adverse effects of war and insurgency. Insecurity, in the form of rebel fighting, cattle raiding and theft "is the single reason why poverty has persisted and increased in some parts of the country". Results of surveys conducted over the last three years show that in addition to low incomes, impoverished Ugandans are most concerned with lack of access to land and basic services which include health care, education, and safe drinking water, the Bank added.