The Swedish government has recommenced financial aid to Uganda after suspending some assistance in March.

Swedish Minister for International Development Cooperation Hillevi Engstrom. NET Photo

Uganda relies on aid to fund about 20 percent of its annual state budget.

The Swedish embassy in Kampala said it would provide 1.35 billion crowns ($198 million) over the next five years to improve child and maternal health, sustainable growth and employment in Uganda.

“Sweden wants to help create better conditions in Uganda for sustainable economic growth and development. This is why Swedish aid to Uganda will remain substantial,” Swedish Minister for International Development Cooperation Hillevi Engstrom said.

In March, Sweden said it would immediately cut aid totalling about $1 million to Uganda because of the Anti gay bill. Other donors including Norway, Denmark, the United States and the World Bank also cut aid.