We have no money! gov’t trashes private schools request for recovery package ahead of reopening

The State minister in charge of planning at the ministry of finance, planning and economic development, Amos Lugoloobi, has made it clear that private schools will not be given money in form of relief and recovery packages as requested.

Owners of education institutions as well as a group of three MPs, led by Igara West’s Michael Mawanda, had asked the government to extend Shs100m to each of the private schools as a recovery package. Read that report here.

But on November 10, while appearing before the committee on education and sports, Minister Lugolobi and officials from Microfinance Support Center (MSC) and Bank of Uganda (BoU) made it clear there won’t be any special fund for private schools.

Lugoloobi urged school owners to seek help from the Uganda Development Bank where a stimulus package to the tune of Shs200bn has been sent for all entities that need it.

“Like we agreed this pandemic has nearly affected everybody because everybody would come and say create for us a facility.’ How many facilities shall we end up with? Let us have one which is efficiently managed,” said the minister.
“We do not intend to discriminate anybody but we said all SMEs are eligible. Education institutions may apply.”

BoU deputy governor Michael Atingi-Ego noted that the central bank had worked with Uganda Bankers Association (UBA) to ensure that loans by education institutions are restructured for the next 12 months starting November 01.

But Kashari North MP Nathan Itungo said most of the schools would be closed and there would be a crisis. He noted that nine out of 44 universities were so financially stressed that they were planning not to reopen, which would be problematic for education service provision.