Letter to the IMF Board and Management: concerns around the IMF's support for fossil fuel extraction in Uganda

Twenty-five organisations have urged the IMF to revise its macroeconomic strategy for Uganda, claiming that the current Extended Credit Facility (ECF) arrangement contradicts net-zero science by relying on oil extraction for debt sustainability. The signatories argue that the IMF has failed to assess social, environmental, and balance of payment risks, while specifically supporting public investment in oil infrastructure over renewable energy.

• The IMF's current arrangement under the Extended Credit Facility (ECF) with the Ugandan government utilizes a macroeconomic strategy for debt sustainability that relies heavily on oil extraction, which the signatories claim contradicts IEA science stating there is no need for new fossil fuel supply in a net zero pathway.
• The IMF is projected to see oil exports represent 29% of Uganda's total exports by 2026/7, yet the signatories assert the IMF has failed to properly assess risks including social and environmental impacts, balance of payment risks from capital expenditures, the practices of international oil companies, and global transition spillover risks.
• The IMF adjusted the fiscal consolidation strategy to allow for higher capital expenditures in the 2022-23 fiscal year for oil production preparation, such as a pipeline and oil jetty, because Ugandan authorities could not negotiate for international oil companies to fund this infrastructure. This resulted in the IMF supporting frontloaded public investment in fossil fuels instead of renewables.

APA

Race, M. (2023). Letter to the IMF Board and Management: concerns around the IMF's support for fossil fuel extraction in Uganda. Recourse. https://re-course.org/newsupdates/letter-to-the-imf-board-and-management-concerns-around-the-imfs-support-for-fossil-fuel-extraction-in-uganda/

Chicago

Race, Madeleine. Letter to the IMF Board and Management: concerns around the IMF's support for fossil fuel extraction in Uganda. Recourse, 2023. https://re-course.org/newsupdates/letter-to-the-imf-board-and-management-concerns-around-the-imfs-support-for-fossil-fuel-extraction-in-uganda/.

Wikipedia

{{cite press release |last1=Race |first1=Madeleine |title=Letter to the IMF Board and Management: concerns around the IMF's support for fossil fuel extraction in Uganda |publisher=Recourse |date=12 July 2023 |url=https://re-course.org/newsupdates/letter-to-the-imf-board-and-management-concerns-around-the-imfs-support-for-fossil-fuel-extraction-in-uganda/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{race2023letter, author = {Race, Madeleine}, title = {{Letter to the IMF Board and Management: concerns around the IMF's support for fossil fuel extraction in Uganda}}, publisher = {Recourse}, year = {2023}, month = jul, url = {https://re-course.org/newsupdates/letter-to-the-imf-board-and-management-concerns-around-the-imfs-support-for-fossil-fuel-extraction-in-uganda/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }