The Ugandan government is actively exploring new funding avenues to sustain HIV/AIDS programs following the withdrawal of financial support from the United States Agency for International Development (USAID).
Prime Minister Robinah Nabbanja revealed that the Ministry of Health is drafting a Cabinet memorandum to seek guidance on securing alternative funds to address the deficit. Speaking in Parliament on Thursday, 6 March 2025, Nabbanja assured lawmakers that discussions are ongoing with both local and international partners to bridge the funding gap of Shs480 billion necessary to maintain critical health services.
Her remarks came in response to concerns raised by Hon. Abdulhu Byakatonda (Indep., Workers Representative), who questioned the government’s strategy to prevent disruptions in HIV/AIDS treatment and support for affected individuals. Byakatonda warned that the funding halt threatens the livelihoods of 12,551 community health workers and urged the government to meet its Abuja Declaration pledge of allocating 15 percent of the national budget to healthcare, a target that Uganda has yet to achieve, currently standing at just 6.5 percent.
The funding crisis follows a decision by the U.S. government on 20 January 2025 to suspend potentially trillions of dollars in aid previously channeled through USAID. The Ugandan government now faces the challenge of filling this financial void to ensure that essential HIV/AIDS interventions continue without disruption.
In a separate development, the Prime Minister confirmed that Shs163 billion has been released to fund government grant-aided schools for the first term of 2025. This came after Kalungu West MP, Hon. Joseph Ssewungu, expressed frustration over the Ministry of Finance’s delay in disbursing funds needed for instructional materials.
Nabbanja explained that the total capitation grant budget for the 2024/2025 financial year is Shs490.2 billion, with allocations typically made in the first, third, and fourth quarters. The Ministry of Finance had earlier released Shs163.4 billion to local governments for the third term of 2024. However, the Ministry of Education had instructed local governments to temporarily withhold school funding until student enrollment data was verified, a process that has now been completed, allowing funds to reach the institutions.
With both health and education sectors facing financial strain, Uganda continues to seek sustainable solutions to maintain critical services amidst shifting international funding dynamics.