Uganda

What are we funding?

GRANT AMOUNT	ENDORSEMENT DATE	ACTIVITIES	INSTRUMENTS SUPPORTED	WB PROJECT
US$20 million	February 15, 2023	Supporting two new disaster risk finance instruments that will allow Uganda’s flagship public works safety net program to cover more people when there are droughts or floods.	Contingent financing instrument (under design, 2025) Sovereign risk transfer instrument (planned, TBD)	Northern Uganda Social Action Fund IV (P179904)

The World Bank has supported the social protection sector since 2002 through three rounds of financing to the flagship Northern Uganda Social Action Fund (NUSAF), one of the largest safety-net programs in the country.
A US$20 million GSFF grant will make the public works safety net scalable so that when there is a climate shock, the government can support more vulnerable people.
Half of the grant will be used to capitalize a US$25 million contingent financing instrument for the safety net. Linking the instrument to the Ministry of Finance, Planning and Economic Development will facilitate the government in making future budgetary allocations to it and promote its long-term sustainability.
The grant also provides US$3 million in premium subsidies for a sovereign risk transfer instrument that can replenish the prearranged funding facility in the event of a catastrophic drought or flood. The sovereign risk transfer instrument would provide US$23-35 million in coverage, though its design will proceed only once the government completes and adopts a disaster risk finance strategy. Together, the two instruments are estimated to cover emergency payments to 1.4 million people.