Top > Business > 2005 > December > 2005-12-02

Netherlands Withholding Uganda Aid

The Netherlands is withholding about a quarter of its budget support to the Ugandan government over concerns about governance and macro-economic management. The country is the first donor to cut aid to the east African country following the arrest on treason charges of opposition leader Kizza Besigye, although its statement did not name him as a reason for the change.

The brief statement says, "This decision is based on the concern of the Netherlands that insufficient progress is being made on governance issues (especially as related to the political transition) and in the area of macro economic management."

According to a statement released by the embassy on Wednesday, Dutch budget support to the government this financial year would be reduced to $18.6 million from an earlier commitment of $25.8 million.