








Uganda’s economy has performed reasonably well in a complex environment.
WASHINGTON D.C., United States of America, January 11, 2017 – On January 5, the Executive Board of the International Monetary Fund (IMF) completed the seventh review of Uganda’s economic program under the Policy Support Instrument (PSI).1 The Board’s decision was taken on a lapse of time basis.2 In completing the review, the Board granted a waiver of the nonobservance of the end-June 2016 assessment criterion on the overall deficit of the central government.
The PSI for Uganda was approved by the Board on June 28, 2013 (see Press Release No. 13/78), and a one-year extension was approved on June 6, 2016 (see Press Release No. 16/263).
Uganda’s economy has performed reasonably well in a complex environment. Growth slowed marginally to 4.8 percent in FY15/16, reflecting muted sentiment in an election year and adverse global and regional developments. The current account deficit improved by 1 percentage point to 5.9 percent of GDP, and the Shilling has stabilized after a sharp depreciation in 2015. Growth is projected to nudge up to 5 percent in FY16/17.
Program performance under the PSI has been mixed. Tight monetary policy in 2015 has helped contain inflation in the target range, and the Bank of Uganda (BoU) has started an easing cycle in April 2016. Reserve cover remains adequate. Fiscal revenue and deficit targets were missed, reflecting lower-than-expected growth and election effects. Investment spending fell short, while current expenditure overshot. Structural reforms have progressed, albeit with some delays.
The banking sector remains overall well capitalized, despite elevated non-performing loans. The BoU appropriately took over an undercapitalized bank and is identifying a strategic investor.
Uganda remains at a low risk of debt distress. The scaling-up of infrastructure investment implies a temporary increase in debt, putting a premium on domestic revenue mobilization and ensuring that public investment yields the intended growth dividend.
Looking ahead, priorities include close cooperation with the Financial Action Task Force to ensure Uganda’s swift exit from its “gray” list; strengthening domestic arrears monitoring; and amending the Bank of Uganda Act to reinforce central bank independence.
1 The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF’s Executive Board, signal to donors, multilateral development banks, and markets the Fund’s endorsement of a member’s policies (see imf.org/external/np/exr/facts/psi.htm). Details on Uganda’s current PSI are available at imf.org/uganda.
2 The Executive Board takes decisions without a meeting when it is agreed by the Board that a proposal can be considered without convening formal discussions.










On the 9th December Court Justice Stephen Kavuma Court Order with Constitutional Application number 07 in the Constitutional Court in Kampala today. What does this order say, that of such importance, this is from the man who during December 2016 was ordering for himself the ability to change his age, so he could work for four more years as Chief Justice. That is length he takes the law into his own and takes decisions.
But earlier in the year during 2016 the Chief Justice Kavuma wrote an Interim Order of 29th April 2016 where he banned the campaign of defiance. So that he is loyalist to the Movement and to the President is clear. There isn’t any indication that is stopping. Because of today the Chief Justice Kavuma ordered this:
“1. An interim order is hereby issued restraining Parliament, any person or authority from investigating, questioning and inquiring into the impugned bonus payments and or staying all proceedings of whatever nature, if any, which may be pending before any forum whatsoever arising from impugned payments, until the main application of No. 06 of 2017 has been determined” (Constitutional Court, 09.01.2017).
We are today seeing a special level of law and understanding of law as the Constitutional Court are banning and ordering the Attorney General John Muwanga who wanted to have an inquiry of the “Presidential Handshake”. The Presidential Handshake that are known in public because of the bonuses and kickbacks given to public servants and others loyal to the Movement. Parts of the ones who we’re parts of the Uganda Revenue Authority and others; which is the URA who won a case against the petroleum drilling companies Tullow Oil and Heritage who has licence to drill in the Lake Albert Basin. Certainly these billions of shillings are questionable as the Court Justice has to do this.
The Constitutional Court is then overriding the Attorney General and the Parliament, the Parliament that has Members of Parliament, who cannot and are not allowed to do their duty to make checks and balances of the use of public funds. This proves that the Government of Uganda doesn’t need accountability or transparency as even the investigations of the Presidential handshake is illegal. But if somebody wants more documents to be leaked; please to do so, we the people and voices for governance can undress these kingpins and the racket called the Movement regime.
The Presidential Handshake is a questionable act that is not following international standards as the URA proclaimed days after. But on the same day as the Court Justice wanted to silence the Republic and be loyal to Mzee, Chris Obore of the Parliament had this to say:
“The Speaker and the Prime Minister discussed parliament business. When the matter of the now controversial oil bonus payments christened “presidential handshake” came up, the Speaker said the motion prepared by some Members of Parliament would be tabled. She advised the Minister concerned to prepare to provide MPs with explanations” (Chris Obore – ‘Press Release” 09.01.2017).

So Speaker Rebecca Kadaga and PM Ruhakana Rugunda will not listen to the courts, they will have the Parliamentary Session on the Motion filed, even as the Court Order has been set. The same acts happen on the same day and proves that there is different understand on the laws and orders. As when Chief Justice Kavuma we’re banning defiance the Interim Order we’re hold and kept. But now with the Presidential Handshake, the Parliament will defy this and resist the court order. This is proving the power of the courts and also the mismanagement of Uganda. When these cannot work together and honour each other it proves the obstacles of procedures and protocols.
This shows how the need for transparency and accountability in the republic when the Parliament are not following and secondly not in the loop of the courts. The Parliament is creating the laws and the Courts are supposed to use them to sanctions and regulate society. This proves how President Museveni and his regime has built a fragile and fragmented organizations that following his orders, therefore the Presidential Handshake is now not only a question of the ones who was pocketed and gotten ill-gains from the Uganda Revenue Authority, but now it is a legal question for the MPs even to have an inquiry on the matter.
This story is not over, it will continue to walk and soon run, when it is closed or when it is all unravelled. The Presidential Handshake is not over, we’re just waiting for Museveni to shake somebody else hands and give a few more heavy envelopes. Peace.