Last month, Finance Minister Matia Kasaija unveiled a Shs 72.1 trillion budget for the 2024/25 fiscal year, aiming to generate Shs 32.3 trillion through revenue collection. The budget includes Shs 1.3 trillion in external borrowing and Shs 8.9 trillion from domestic sources, with Shs 19.8 trillion allocated for domestic debt refinancing.
A significant portion of Shs 806.3 billion has been earmarked for bailouts to bolster local companies facing financial challenges:
- Roko Construction Company: Granted Shs 56.2 billion, primarily for managing ongoing projects and addressing debts incurred from significant government contracts, including construction projects like the Parliamentary Building.
- Dei Biopharma Ltd: Receives Shs 723 billion to finalize its state-of-the-art pharmaceutical and mRNA vaccine manufacturing facilities. Founded by biochemist Mathias Magoola and funded partly by Equity Bank Ltd., the company aims to produce affordable medicines and vaccines, potentially generating thousands of jobs. Dei Biopharma faced financial difficulties due to substantial loans from Equity Bank and Uganda Development Bank, which led to challenges in meeting debt obligations.
- Jena Herbals: Granted Shs 2.07 billion for advancing natural therapeutics research and establishing internationally certified production facilities.
Other beneficiaries of the bailouts include:
- Makerere University’s Anti-Tick Vaccine Project: Allocated Shs 25 billion to produce and commercialize vaccines targeting tick-borne diseases.
- Prof. Jennifer Serwanga Sempala’s Human Vaccine Research: Granted Shs 25.24 billion to advance research in human vaccines, contributing to local and global health initiatives.
