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Archive for the tag “IDA”

The Auditor General Muwanga really told stories on mismanagement and maladministration of the NRM government (Quotes from the End of the Year AG Report 30th June 2015)

Ugandan shillings

As of yesterday there we’re the reported 111 cars that vanished and weren’t procured by a Ministry in Uganda. Because of that I had to look more through the report of the Auditor General John Muwanga. There are many stories; some of the ones in this Report have already been discussed on my page.

There so many stories to pick, but here is some of my favourites that shows all from a goats, expressways to other where money have disappeared, over-compensated or not allocated needed funds for the planned procurement and projects that the Government we’re supposed to do. Take a look!

Indebted to International Organizations:

I noted that a number of Government entities are indebted to International Organizations such as PTA Bank, ADB, EADB, WTO, UNIDO, COMESA and Shelter Afrique. A sample of five entities revealed indebtedness of UGX.77,724,089,603 and US$.4,968,950” (OAG, P: 36, 2015).

Overpay on construction of Kampala-Entebbe Expressway:

“An analysis was done and adjustments for the different features of the two expressways were made. It was observed that the unit cost for the Kampala-Entebbe expressway was US$ 2.315 million per lane kilometre while the similar expressway was US$ 1.204 million per lane kilometer” (OAG, P: 38, 2015).

NAO Project going nowhere:

“The protocol agreement between Government of Uganda (GoU) and Democratic People’s Republic of China (DPRC) was signed on the 27th June 2008. It involved establishment of a demonstration centre under the National Agricultural Organisation. However, it was observed that after hand-over of the site by Ministry of Agriculture, Animal Industry and Fisheries to the DPRC, there was no proper follow up by Government on the project as such it was difficult to establish whether the anticipated funding of RMB YUAN 50,000,000 equivalent to UGX.26 bn was received and how it was applied to the project” (OAG, P: 42, 2015).

NCIP disbursed funds:

“Government signed fourteen (14) protocols under the Northern Corridor Integration Projects where substantial amounts of funds have been invested and implementation is on-going. For example amounts totalling to UGX4.2bn was disbursed to fund the power interconnection and the Hoima-Lokichar-Lamu oil pipeline. However, the protocols do not provide for regional coordination and monitoring as well as the audit framework to provide an independent assurance on the utilization of joint funds. This renders it difficult to track the progress of the projects and follow up the accountability for the funds disbursed” (OAG, P: 43, 2015).

Advances Unaccounted for:

Uganda National Roads Authority: 47,738,040,619 UGX” (…) “Ministry of Local Government:  3,827,011,454 UGX” (OAG, P:87, 2015).

bidco-uganda

Bidco has avoided VAT:

It was noted that as of November, 2014, the outstanding VAT obligations for BIDCO stood at UGX.744,420,170, included in this figure was late payment interest charge of UGX.168,747,557. Accordingly, a sum of UGX.700,000,000 was paid to URA towards settlement of the tax arrears” (OAG, P: 93, 2015). “After the eleven (11) years, BIDCO would start paying VAT directly on its own and from the 12th year start refunding to Government the VAT plus 5% interest for the first eleven (11) years in (8) equal installments over a period of (8) years. This condition was subject to fulfillment of article 4(3) of the agreement which requires Government to have handed fully to BIDCO all the agreed 26,500 hectares of land” (OAG, P: 94, 2015).

ADB Susbscription:

“In August, 2010, the Governing Council of the African Development Bank (AfDB) under the sixth general capital increase of the bank allocated Uganda shares worth USD.19,759,798 payable over a 12 years period in annual instalments of USD.1,646,649. It was noted that the payment of Uganda’s 4th instalment of UDS.1,293,299 which became due on 16th March, 2015 had not been made. As a result, the callable shares related to the missed instalment had been suspended in line with the Board of Governors resolution on the sixth general capital increase of the bank meeting” (OAG, P:95, 2016).

Banana Project:

“The banana project owns land in Bushenyi together with other movable properties. However, it was noted that the land title is still in the names of the project without the legal mandate to continue owning this land of behalf on government unless the expired legal status is resolved following the legal opinion of the Attorney General to transfer the project under Agriculture sector” (…) “During the financial year 2014/2015, the PIBID project had a budget provision of UGX.9bn out of which only UGX.2.7bn was released as vote on account and as a result, activities worth UGX.6,682,145,000 were not under taken. The affected activities include: purchase and installation of machinery and equipment (UGX.2.5bn), Construction materials (UGX.1.457bn.), marketing of the tooke products (UGX.777,665,000) and procurement of transport equipment (UGX.780,000000)” (OAG, P: 102-103, 2015).

Delayed Construction of Katuna OSBP and swamp reclamation works:

“The construction of Katuna OSBP is undertaken at a contract sum of UGX.8,951,277,750 and Swamp reclamation for access road works estimated at UGX.12,000,000,000. The commencement date for the construction was 13th June 2014 and the estimated completion date was set for 13th June 2015. This was later revised to 30th December 2015. Inspection of construction works showed the following” (…) “The EU Confirmed funding on the 12th May 2014 and all the conditions set by World Bank were met including NEMA’s clearance that was received on the 30th April 2014. I noted that GOU was required to finance the building works for Katuna OSBP since IDA credit funding had been exhausted. The contract for construction of OSBP was finally awarded at a sum of UGX.8,951,277,750 on the 5th June 2014. The EU delayed to operationalize her support and the contractor could not commence on the major building works due to delayed reclamation of the wetland where the buildings were to be constructed” (…) “Management explained that heavy rains, poor terrain and lack of material sources in Katuna such as sand are the biggest challenges. The would be material sources such as hard core are not readily accessible due to the hilly terrain of the area and the contractor can only make a few trips only on a sunny day. For materials like sand, the source is Mbarara (about 150km) and the contractor can only make a few trips given that the road (Mbarara-Ntungamo and Kabale-Katuna) is under construction” (OAG, P: 137-139, 2015).

Uganda Police Force:

“A review of the statement of financial position revealed outstanding payables of UGX.16,454,307,782. Payables worth UGX.10,500,682,162 were incurred during the year which implies that management continued to incur arrears without establishing sufficient mechanisms to monitor and control them” (OAG, P: 183, 2015).

Ministry of Local Government:

“A review of the Ministry of Local Government’s expenditure revealed that the entity charged wrong expenditure codes to a tune of UGX.12,086,792,676. This constituted 40% of total actual expenditure for the Ministry of Local Government. Whereas the funds were spent on items for which they were not originally budgeted for, the accounts have been presented in a way that reflects that the amounts were spent on the earlier budgeted items” (OAG, 2015).

M/S Faw Limited:

“A local company was contracted by the Ministry to provide storage space for the various roads, sanitary and fire-fighting equipment procured under a Chinese loan in 2011/2012 financial year from their parent company. The providers were paid UGX.1,416,000,000 during the year 2014/15 for 20 months storage of the equipment delivered. A review of the procurement file revealed the following” (…) “It was noted that only the Contracts Committee decision on a submission (PP Form 209) approving the evaluation report and contract award at a monthly fee of UGX.70,800,000 were available on file. However, the Solicitor General’s approval and contract agreement were on the procurement file. No initiation of procurement, invitation of potential bidders, record of receipt of bidders, evaluation report and PDU submission of Evaluation Committee report to Contracts Committee were on file to support the award” (…) “A review of the availed documentation revealed that two conflicting pro-forma invoices were submitted by the firm with one quoting a monthly fee of US$.14,160 VAT inclusive for ten months, that is; from 1st June 2012 to 31st March 2013 totaling US$.141,600 and dated 17/5/2012 and another one dated 2/1/2012 quoting a monthly fee of UGX.70,800,000 VAT inclusive for twenty months without clarifying the particular months” (…) “The final batch which arrived in August 2013, was commissioned by the president in October 2013 and handed over to police on 19th December 2013 implying storage of at most five (5) months. This makes fourteen (14) total months of storage as opposed to the 20 months billed resulting into a loss of UGX.424,800,000” (OAG, P: 237-239).

updf-south-sudan

Ministry of Defence:

“During the year the Ministry’s total expenditure on land acquired amounted to UGX.1,119,388,145. However, it was noted that the government policy of capitalising the acquired land from the financial year 2011/2012 did not give guidance on what to include as cost of land acquired. As such, this amount could not be verified due to lack of guidelines on treatment of land costs in the financial statements” (…) “It was observed that a sum of UGX.1,000,000,000 was paid to an individual as part payment on a claim of UGX.2,958,668,733 for the compensation of 683 cattle and 119 goats which were handed over to 4th Division for safe custody during the insurgency period in 1986” (…) “It was not possible to confirm whether this claim had not been paid before since it is now 28 years since the purported supply of the animals” (…) “It also appears that these animals were for various people but instead the compensation was made to one individual” (OAG, P: 285-288, 2015).

State House Entebbe – Okello House:

“State House has been occupying Okello House for many years with a tenancy agreement that expired in 2013. However, it was observed that State House has not renewed the tenancy agreement and no rent payments have been made to the landlord despite continued occupancy. At the close of the financial year, a sum of UGX.1.272,363,507 was outstanding in rental arrears” (…) “National Housing and Construction Corporation owns properties on Plot 1 Kyagwe Road–Nakasero which is currently occupied by State House. Documents indicate that National Housing has been demanding arrears of UGX.201,100,000 from State House. These arrears have not been reflected in the financial statements”  (OAG, P: 294-295, 2015).

If you don’t find this interesting that the Government of Uganda is misspending funds in this way and that this is just a figment of imagination as this is pieces of a giant report. The most interesting is that one man got the whole piece of the pie of what happen in 1986 and secondly that the State House doesn’t even have an agreement with the tenant who owns Okello House where the President has gallant dignitaries. That shows the state of affairs, brothers, time for a change and also better procedures and practices! Peace.

Reference:

OAG – ANNUAL REPORT OF THE AUDITOR GENERAL FOR THE YEAR ENDED 30TH JUNE 2015

Opinion: President Mugabe and his Zanu-PF blaming the West again for their problems!

mugabe

Again, the mighty West is involved in internal squabbles in Zimbabwe. I am surely that the tourist from the West who goes to Zimbabwe comes with teaching of violence and comes with knowledge of the infamous book ‘From Dictatorship to Democracy’ of Gene Sharp. Because the tourists are not coming to look at the beautiful nature apparently they come to counter the draconian government of President Mugabe and his ruling party Zimbabwe African National Union – Patriotic Front (Zanu-PF).

President Mugabe plan is to counter “an elaborate Western plot to destabilise Zimbabwe via opposition-led protests and anarchy” (Zimbabwe News Day, 2016).

Dr Ignatius Chombo who is Zanu-PF Secretary for Administration told state media that President Mugabe laid the essential framework to guide Zanu-PF and the whole nation during the ruling party’s Politburo and Central Committee meetings in the Capital city Harare last week. Zanu-PF Secretary for Administration said, “As the party’s Secretary for Administration, I want to remind party members and the rest of Zimbabweans of the 10 exhortations which were made by the President during the Politburo and Central Committee (meetings) last week” (…) “These exhortations are what will guide the party accordingly as we prepare to go for the December Conference as well as position ourselves against the threats posed by the West” (…) “Firstly, there is need to Organise the party from cell, village, branch, district and provinces. We should also truly bring the people together under the banner of Zanu-PF. We should also undertake to shun factionalism, divisions, nepotism, tribalism and regionalism” (Zimbabwe News Day, 2016).

Because the West is the reason for the public demonstrations, not that the government themselves have made policies that gives the Police Force more new Anti-Riot Gear, but doesn’t pay salaries. It is the Western sanctions wrong that the Zimbabwe Government have paid the elites and their businesses, instead of paying salaries to the Army and Health Care Workers. It is the West fault that the infrastructure projects have been embezzled from. I am sure that it is the West fault that the drought came and that the rain isn’t falling steady.

But as President Mugabe is supposed to be a biblical leader he should pray and this all should be solved like snap of his fingers and with the might of his powers. With the biblical powers of President Mugabe the Western Powers shouldn’t have the ability to influence and change the outcome of the political dissidents in Zimbabwe. Still, they are the problem; not themselves?

President Mugabe and Dr. Ignatius Chombo are using the West as a scapegoat from their own misgivings and maladministration. As the Cash-Strapped and deficit is man made by the Zanu-PF who are there for the interest of themselves and not the citizens. The Citizens are tired of taken for granted and used as pawns for the World Bank and International Monetary Fund to get bail-out and debt-relief as the Central Government are borrowing ever more money without getting revenue in the same levels of the expenses. Well, I guess that is the West fault as well.

So #ThisFlag #Tajamuka #NERAdemo and #NoBondNotes are the West fault. It is not internal problems as the Zimbabwe Police Force brutality and the aggressive government to silence the activists in ways of arresting and detaining them, even get them to hospital by the force used on the streets. This is the entire West fault, as they support the Police with Tear-gas and batons to hit the citizens like they are baseballs. Not the mismanaged social policies and deficiencies over time together with the tiredness of a regime who doesn’t value their citizens. It is the West who has created these demonstrations.

If the current leadership of Zanu-PF together with the President Mugabe believes the West is behind it. Than they are blind behind their wealth as fog of ignorance of the reactions that can come by continuing policies and economic stagnation without any clear indication of catering to the unemployed, educated and average citizen as they struggle with their day-to-day. While the Zanu-PF are riding luxurious cars and living in mansions or hotels while the citizens cannot take out needed funds to pay for rent. That is not the West fault, that is the economic fragmented and economic policies made by the Zanu-PF; and when the citizens of Zimbabwe cannot pay their bills even as they have money in bank shows the legitimate reason for demonstrating against their regime. This is not a problem created by the West, this a problem created by the Harare and Mugabe Administration.

It is time for the Zanu-PF to man-up and take responsibility for their actions. Instead of blaming the West; I am just waiting for the President Mugabe saying that Evan Mawarire being hired by CIA and MI6 to Coup his regime. I shouldn’t write it, the Zanu-PF minions might use this as proof. Because, the West is always the behind everything that creates problems for the Zanu-PF; not that Zanu-PF creates their own problems. Peace.

Reference:

Zimbabwe News Day – ‘Mugabe Announces the Strategy to Counter Peoples Challenge’ (11.09.2016) link: http://zimbabwenewsday.co.uk/2016/09/11/mugabe-announces-strategy-counter-peoples-challenge/

World Bank Statement on Zimbabwe (08.09.2016)

Zim Money Billion

The World Bank Group is committed to work with all partner countries, including Zimbabwe, to achieve their long term development goals. We care deeply about the well-being of the people of Zimbabwe.

Contrary to what has been reported in some media, Zimbabwe is not currently eligible for financing under IDA’s turnaround facility. The Zimbabwe Turnaround Eligibility Assessment Note that was leaked to some outlets is an unofficial draft document that has not been approved by the Bank.

The World Bank will only resume direct lending to Zimbabwe when the issue of arrears is resolved. This approach is standard to all International Financial Institutions.  Upon arrears clearance, Zimbabwe would be eligible as a borrowing member of the Bank to a broad range of financing instruments.

2016/169/AFR: World Bank Group unveils $16 Billion Africa Climate Business Plan to Tackle Urgent Climate Challenges (24.11.2015)

Gado World Bank

One third of funds expected to come from Bank’s fund for the poorest countries

WASHINGTON, November 24, 2015—The World Bank Group today unveiled a new plan that calls for $16 billion in funding to help African people and countries adapt to climate change and build up the continent’s resilience to climate shocks.

Titled Accelerating Climate-Resilient and Low-Carbon Development, the Africa Climate Business Plan will be presented at COP21, the global climate talks in Paris, on November 30. It lays out measures to boost the resilience of the continent’s assets – its people, land, water, and cities – as well as other moves including boosting renewable energy and strengthening early warning systems.

Sub-Saharan Africa is highly vulnerable to climate shocks, and our research shows that could have far-ranging impact — on everything from child stunting and malaria to food price increases and droughts,” said World Bank Group President Jim Yong Kim.  “This plan identifies concrete steps that African governments can take to ensure that their countries will not lose hard-won gains in economic growth and poverty reduction, and they can offer some protection from climate change.”

Per current estimates, the plan says that the region requires $5-10 billion per year to adapt to global warming of 2°C.

The World Bank and the United Nations Environment Programme estimate that the cost of managing climate resilience will continue to rise to $20-50 billion by mid-century, and closer to $100 billion in the event of a 4°C warming.

Of the $16.1 billion that the ambitious plan proposes for fast-tracking climate adaptation, some $5.7 billion is expected from the International Development Association (IDA), the arm of the World Bank Group that supports the poorest countries. About $2.2 billion is expected from various climate finance instruments, $2.0 billion from others in the development community, $3.5 billion from the private sector, and $0.7 billion from domestic sources, with an additional $2.0 billion needed to deliver on the plan.

“The Africa Climate Business Plan spells out a clear path to invest in the continent’s urgent climate needs and to fast-track the required climate finance to ensure millions of people are protected from sliding into extreme poverty,” explains Makhtar Diop, World Bank Group Vice President for Africa. “While adapting to climate change and mobilizing the necessary resources remain an enormous challenge, the plan represents a critical opportunity to support a priority set of climate-resilient initiatives in Africa.”

The plan will boost the region’s ability to adapt to a changing climate while reducing greenhouse emissions, focusing on a number of concrete actions. It identifies a dozen priority areas for action that will enhance Africa’s capacity to adapt to the adverse consequences of climate variation and change.

The first area for action aims to boost the resilience of the continent’s assets. These comprise natural capital (landscapes, forests, agricultural land, inland water bodies, oceans); physical capital (cities, transport infrastructure, physical assets in coastal areas); and human and social capital (where efforts should include improving social protection for the people most vulnerable to climate shocks, and addressing climate-related drivers of migration).

The second area for action focuses on powering resilience, including opportunities for scaling up low-carbon energy sources. In addition to helping mitigate climate change, these activities offer considerable resilience benefits, as societies with inadequate access to energy are also more vulnerable to climate shocks.

And the third area for action will enable resilience by providing essential data, information and decision-making tools for climate-resilient development across sectors. This includes strengthening hydro-met systems at the regional and country levels, and building capacity to plan and design climate-resilient investments.

The plan is a ‘win-win’ for all especially the people in Africa who have to adapt to climate change and work to mitigate its impacts,” said Jamal Saghir, the World Bank’s Senior Regional Adviser for Africa. “We look forward to working with African governments and development partners, including the private sector, to move this plan forward and deliver climate smart development.”

The Africa Climate Business Plan reflects contributions and inputs from a wide variety of partners with whom the Bank is already collaborating on the ground, in a coordinated effort to increase Africa’s resilience to climate variability and change. The plan aims to help raise awareness and accelerate resource mobilization for the region’s critical climate-resilience and low-carbon initiatives.

The plan warns that unless decisive action is taken, climate variability and change could seriously jeopardize the region’s hard-won development gains and its aspirations for further growth and poverty reduction. And it comes in the wake of Bank analysis which indicates climate change could push up to 43 million more Africans into poverty by 2030.

Press Release: World Bank Supports Better Statistics in Kenya (10.09.2015)

A new $50 million Statistics Program for Results will help better economic management, generate high quality data and strengthen KNBS capacity

WASHINGTON, September 10, 2015—The World Bank today approved a $50 million Program to support the Kenya National Bureau of Statistics (KNBS) to generate better and more accessible data to inform policy-makers and contribute to strengthening its capacity.

The Kenya Statistics Program-for-Results will support the Government of Kenya to fill data gaps, improve the quality of key official statistical products and processes, enhance dissemination practices and make data more accessible, and contribute to strengthen the capacity and management systems of the KNBS.

“High-quality data are critical to measure progress in growing the economy, reducing poverty and fostering shared prosperity. When statistics are up-to-date and regularly released publically, the data will inform decision making in the public and private sector alike,” said Diarietou Gaye, Country Director for Kenya. “Open data helps not only to measure progress, but also to push it forward. Kenya has made significant progress on the open data front, but more needs to be done to ensure the data are current and regularly updated.”

This successful development financing is about achieving results and institutional strengthening. Everyone—government officials, parliamentarians, civil society, and the private sector—is demanding programs that help deliver sustainable results and build institutions. To address this growing demand, the World Bank developed the Program-for-Results (PforR) financing instrument. Its unique features include using a country’s own institutions and processes, and linking disbursement of funds directly to the achievement of specific program results. This helps build capacity within the country, enhances effectiveness and efficiency and leads to achievement of tangible, sustainable program results.

The Kenya Statistics Program-for-Results funded by the Bank’s International Development Association (IDA)* is innovative and marks a global debut in the use of the PforR instrument to support the development of statistics in a country.

As Africa’s newest lower-middle income country, Kenya needs to generate the high-quality economic statistics required to inform and attract investments and help grow the economy”, said Johan A. Mistiaen, Sr. Economist and the Program’s Team Leader.“Moreover, current estimates of poverty and inequality are based on data that are a decade old. This operation will support a program of economic and household surveys (including the ongoing 2015-16 Kenya Integrated Household Budget Survey) to update these statistics and henceforth produce these data on a regular basis.”

The activities supported by the new operation are aligned to the Government’s Vision 2030 and the second Medium Term Plan, which underscore that data and statistics are essential for evidence-based policy making and also for monitoring the development impact. This will create new jobs, reduce extreme poverty and contribute to shared prosperity in line with the Bank’s Country Partnership Strategy for Kenya (2014-18).

The credit is provided under the standard IDA terms that include a maturity of 38 years with a grace period of six years.


About IDA

* The World Bank’s International Development Association (IDA), established in 1960, and helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 77 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change for 2.8 billion people living on less than $2 a day. Since 1960, IDA has supported development work in 112 countries. Annual commitments have averaged about $18 billion over the last three years, with about 50 percent going to Africa.

Uganda’s Medium Term Debt Management Strategy for FY 2015/2015 – FY 2019/2020: What is it all about?

UGX Pic

Here you will see what strategies and plans the Government of Uganda has made for their loans and debts. This is about how the Government will deal with it and how it can be done. The numbers tell what they can expect if they pick the certain ways of dealing with it. It shows what can happen and the shock scenarios are important.

This should be seen as important to follow especially with the growing debt and the rates that come with that. Therefore it will be something that should be monitored. From the sustainability of the ratio according the GDP should be something that also brings fear. Especially since this will have general effect on how the general economy will be hit with the down payments and strain the basic budgets of the government. There its a viable thing that should be well known by people, because this will have big importance until FY 2019/2020

“The Uganda Vision 2040 aspires to transform Uganda into a modern and prosperous society within 30 years through provision of adequate infrastructure, development of agriculture, human resources and services sectors, enlargement of markets, strengthening of the private sector and through industrialization” (…) “Implementation of the Uganda 2040 Vision will require substantial resources that will partly be garnered through the domestic and international borrowing. To ensure that our debt remain sustainable, such borrowing has to be carried out through a properly formulated Medium Term Debt Management Strategy (MTDS)” (MTDS, P: 4, 2015).

“The key aim for the MTDS2015 is to ascertain the cost and risk trade-off of financing the medium term fiscal deficit through borrowing while remaining mindful of our debt sustainability” (…) “To meet Government’s financing requirements at the minimum cost, subject to a prudent degree of risk; (ii) to ensure that the level of public debt remains sustainable, both in the medium and long term horizon while being mindful of future generations; and (iii) to promote the development of the domestic financial market (MTDS, P: 6, 2015).

Strategies:

  1. Traditional post debt relief approach of prioritizing concessional financing.
  2. A debut Euro-Bond: The Sovereign Bond Issuance which risks the cost and the trade-off of the International-Market and financing alternative.
  3. Non-Concessional borrowing and meeting with bilateral with commercial creditors negotiations.
  4. Reliance on Domestic-Financing establishing the cost and risk trade-offs, which risk less since it’s from the Domestic-Financial-Market.

(MTDS, P: 6-7, 2015).

Cost & Risk Debt Uganda

External Debt Stock:

From FY2006/2007 it was Domestic Debt and Outstanding(DoD) was US$1.47 billion. And in FY 2013/2014 had risen to US$4.3 billion (MTDS, P: 13, 2015).

External Debt Stock Uganda

Domestic Debt Stock:

Domestic Debt Stock

Refinancing:

External debt maturity for the ATM (Average Time for Maturity) was 18.9 Years. The plan is setting that the in 2.3 years will the ATM be 11.8 years.

Public Debt Maturity Profile under REFINANCING

Currencies:

Currency Distribution P17

Aggregrate Medium Term Debt Strategy:

The outlook for the 5.3% in FY 2014/2015 and is looking to reach 5.8% in FY 2015/2016. The plan forward is to attain an average 6.3% for the fiscal framework (MTDS, P: 17, 2015).

Selected Medium Term P18

Government expenditure is on an average to be 20.9% of the GDP for the FY 2014/2015. In the 2015/2016 it is 21.7% of the GDP. The main expenditure for the budget is the infrastructure projects like the upgrading of Entebbe International Airport, Hydro Power projects and Albertine Regional Airport. The total cost for the projects is US$7.0 Billion. There is set to be 5% target for the inflation rate and the exchange rate is set for 12.1% in FY 2015/2016 and average for 2.4% the rest of the years for the medium term (MTDS P: 17-18).

Stylized Financing Instruments:

Two instruments:

i: International Development Association (IDA) has the interest 0.75% for the maturity of 38 years.

ii: African Development Fund (ADF) has the interest 0.75% with a maturity of 40 years.

iv: The concessional is with fixed rate loans with 23 years maturity and 6 year grace period. These terms comes from IDA-Blend, Kuwait Fund, Abu Dhabi Fund, UK-Export Credit Guarantee.

v: The fixed rate instrument on the Euro Bond which is priced on a ten-years US-Treasury interest rate.

vii: With Pure commercial loans is a instruments with a 7 years of maturity and with a 3 years grace period.

viii: One T-Bills is a domestic market debt instrument that has a maturity of 91 days, 181 days,  and 364 days.

ix: Four T-Bonds is a domestic market debt instrument that has a maturity of 2, 5, 10 and 15 years.

(MTDS, P: 18-21, 2015).

Stylized Financing Strategy P22

Four scenarios for the Market:

First Scenario: The first thing is possible currency depreciation – is that in the FY 2015/2016 can end up with 30% depreciation and will have to work to sustain that through to 2019/2020.

Second Scenario: A sharp off increase in domestic rates for 2015/2016 and at the Interest Rate will follow the baseline of the Foreign Currency.

Third Scenario: Domestic Interest Rate still set to be baseline assumption that we’re set. And that the denomination on the Foreign Currency following the instruments set for it.

Fourth Scenario: That the Decapitation of the UGX towards the US Dollar in the amount of 15%, that can lead to a shock in the domestic yield a curve for the 2015/2016.

(MTDS, P: 23, 2015).

Analysis of the strategies:

That the total debt-to-GDP from the current level of 28.6% by the end of June 2014, if the end of the time it might end up with 50% level by 2020. This is because of substantial projected increases the fiscal deficit. With the worst strategy the interest rate can go from 1.4% in June 2014 to become 4% in 2020 (MTDS, P: 24, 2015).

MTDS P25

 

MTDS P29

 

MTDS P30

Hope you have found it interesting and learn something of the Government of Uganda planning of dealing with their debt. And how they see the future for their economy. Then what kind of strategies and scenario’s that could appear and how they will appear together. The Financial Years that are ahead and how the Ministry of Finance, Planning and Economic Development thinks of their economy. Hope it give you something and also a little feeling about how the economy might progress.

Peace.

Reference:

Republic of Uganda/Directorate of Debt & Cash Management – Ministry of Financing, Planning & Economic Development: ‘Medium Term Debt  Management Strategy’ (MTDS): 2015/2016 -2019/2020 (April 2015).

2015/320/AFR: World Bank Boosts Fisheries in South West Indian Ocean African Countries

WASHINGTON, February 27, 2015 – The World Bank Group’s (WBG) Board of Executive Directors today approved a total of US$75.5 million to improve the management of fisheries and increase the economic benefits from fishing-related activities for families living in the coastal communities of the South West Indian Ocean region.

The First South West Indian Ocean Fisheries Governance and Shared Growth Project(SWIOFish1) will help improve regional cooperation for the nine African countries that border the waters of the South West Indian Ocean.

“Fisheries are a key contributor to food security, nutrition and job creation for rural coastal populations of the South West Indian Ocean, who are among the poorest and most vulnerable in the region,” said Colin Bruce, World Bank Director of Regional Integration for the Africa Region“Promoting sustainable use of fisheries, linking smaller operators to new value chains and improving regional cooperation over shared resources will boost shared prosperity in these countries and the entire region.”

The coastal populations of the South West Indian Ocean region suffer from challenges such as too little economic growth, hunger, poverty and exposure to climate change impacts. Fish stocks in the region are increasingly facing risks of overexploitation or depletion from overfishing by industrial vessels and artisanal fishers.

The project will initiate regional discussions and cooperation to develop a regional fisheries management program focusing on reducing pressure on the fishing ecosystems and helping countries address shared challenges. Safeguarding fish resource productivity and developing the value chain for fish production will expand the fishers’ livelihoods as a step towards reducing poverty.

Financed by $75.5 million from the International Development Association (IDA)*, the WBG’s fund for the poorest, and $15.5 in co-financing trust funds form the Global Environment Facility (GEF), the project will support regional coordination and cooperation to improve the management and sustainable development of fisheries in the South West Indian Ocean and will benefit the countries in the South West Indian Ocean Fisheries Commission: Comoros, Madagascar, Mauritius, Seychelles, Somalia, Kenya, Tanzania, Mozambique, South Africa, Yemen and Maldives.

Three countries in the region, Comoros, Mozambique, and Tanzania have already taken steps to develop strategies and institutions to improve fisheries management and marine health through other World Bank projects. To leverage these previous investments Comoros will receive $13 million, Mozambique will receive $37 million and Tanzania will receive $36 million to strengthen country-wide institutions and activities, improve fishers’ livelihoods, expand the regional business climate and increase private sector investment in the fishing industry.

“Overfishing, including from uncontrolled small-scale fishing, progressively undermines the resource base upon which coastal communities depend, said World Bank Task Team Leader Xavier F. P. Vincent. “The South West Indian Ocean marine fisheries are part of a larger marine ecosystem shared by all countries of the region. Today’s project will support regional coordination among the countries that border the South West Indian Ocean, improve the health and sustainability of the fisheries.”

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