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Opinion: Tired of NRM apologists defending the record of President Museveni!

It is depressing, it is sad and it tormenting to listen and read the defenses of National Resistance Movement. The defense of the 31 years of rule, the rule of the for life President Yoweri Kaguta Museveni and his cronies. The cronies and their 10th Parliament, the By-Elections that are rigged in favor of the NRM Regime. The government of Uganda is totally controlled by the one in-charge, the President and kingpin.

The Parliament are following orders and making amends to seem to be different. Therefore, the results of elections are more to just show overpower, but not to have real elections. As the NRM sends buses and pays of villages with small-fees and commodities. There aren’t anything fruitful or sincere by the regime. The ones who put dissidents in the Nalufenya prison. Where they will be beaten, tortured and get ill. As well, as in the overcrowded prison in Luzira. The organized silence of opposition, as their rallies are filled with tear-gas and police brutality. If not the ones who are feared by the NRM are put on treason charges and called terrorists.

President Museveni with his patronage, his bloated State House, the massive cabinet and the Presidential Advisors. There certainly enough ghosts, fake bills and misuse of state reserves to write books ten times thicker than the bible. We can know by the lost trillions of the Petroleum monies, as the “Presidential Handshake” is a drop in the ocean. As the UNRA and other agencies has misused the taxpayers monies. This happens with such ease and lacking finesse, but the agencies looking into graft and corruption is compromised, because the ones leading it are loyal Musevenist.

That the government and budgets are bloated. That the financial and economic state is in deep distress, as the state is suffering from lacking provisions and revenue. As well, as they are struggling with the stop of donor friendly relationships. People’s and Foreigners trust in the leadership of Museveni has been dwindling. President Museveni are also already prospecting the revenue of the oil and petroleum, even before it has surfaced. Therefore, the future will also be compromised by the deals done today.

The defenders of the NRM now, does not believe in real democracy, as they defending the rigging and militant Movement. A President who has no trouble with killing and destroying to stay in power. The ones defending him has no trouble to stand by a man who empties the treasury and state reserves with no hesitation. As well, as the men and woman who stays by the regime, are easily taking land and resources, they are eating of the plate and selling it back to the Ugandans. This with impunity and without any consideration of the ones who loses their chances.

It is a nation who has a government, not based on merit, but on loyalty. The loyalty to Museveni and his agenda. The agenda to work for him and his ideas. Not work to develop the nation, but develop the estate of Museveni. The idea of real Movement is ploy from the master himself. He just needs shadows to work for him and for envelopes. Not a real party who deliver policy or working for the future Republic. No the Movement is now a shell used pounce out the empty ideas of greed, nurture of the estates of Museveni and of the staging the power of the old-man with the hat!

President Museveni and his apologists knows all of this, they live by this and has faith that this is ideal and the dream. That someone comes with empty promises and lives by the fake party celebrating the 1986 coup. The coup that overruled the government and the old constitution, that President Museveni couldn’t pigeonhole. That has he done to his own and plans to do it again for his 8th Term.

The apologists can say he created safety, but he also created warfare and civil-war to get to power. Some called it a revolution, other calls it a takeover. But with time it wasn’t for the idea of a people’s government, but more a government and state built around the revolutionary, who didn’t really believe in the words he spoke.

The ones defending him, is defending a lie and that for the sake of eating. Not for the benefit of the Republic or the public. The struggling public is pawns, they are just needed props now and then for the Movement. As they praise their master, as they know if they get to close or too ambitious they are surely losing their place. Therefore, all of them are loyal cadres, elite and patrons who surely basks in the pasture of the President. But really, they should know it is on borrowed time. No-one knows how long the patronage and military can be serviced, how long they can all live on the charade and the misuse of power.

Certainly, the President knows this too, therefore, he uses all ways to make sure and get people on board. Even if that lets people starve, let them cheat on food reliefs and even use refugees as bailing-out card on the struggling economy. That is solely made of the patronage and grand-corruption orchestrated from the seat of the President at the Okello House. He can created all sorts of schemes and manufacture new ways of promoting better agriculture or better yields, but it is all ploys of generating more funds for his own. Not for the public to earn or get better output of the seeds and seedlings. If so, than the agricultural should be booming after 30 years in power.

However, the defense of this will be in the patronage and by the spokespersons appointed by the President. These ones will make a fuzz and say the Opposition never was a viable option and never had the leadership to overturn the Movement. The Movement has always been the only option, they say and use new ways of saying so. But that doesn’t make it true, as the rigging and the intimidation is used to forge this facade. The flawless untouched ballots doesn’t exists, there has been all sorts of play to get the will of the President.

President Museveni, even detain opposition, he uses safe-houses and some like Sam Mugumya are detained in the Democratic Republic of Congo, with no plan of getting him home. Him and others are lingering abroad as the political prisoner lingers in uncertainty. This is the legacy of the revolutionary, who became the draconian and the militarized government who uses all means to stay. He uses all methods on earth, Machiavellian and Orwellian blended in a Yellow Color with no fear of repression… no fear that the Movement can be touched, but when the moment appear. Than the Ugandans shouldn’t lose it, because they have already lost so much in the name of Museveni. Museveni has stolen the past and the present. His men has rewritten the history and tried to become the grand hero, and the generations from the rebellion is dwindling away. The young generation only knows the folklore and should beware, it is not all what it seems. The ghosts are not only in the budgets, but they are haunting the President from the past. They are the ones he stole to gain power and to silence the opposition. These souls will ask in the after-life, why he did what he did to them and also why he punished their grand-kids. Since they all lead the same faith. They all got to feel the pain, with no mercy from the leadership controlled by the President.

That is why there are no defending a man like Museveni. He has used all tricks, even was able to deceive the west for decades to pay for his decadence. Certainly, he must laugh about the dumb-white men and their agendas. His grin must be wide thinking of all the sorts of cars, airplanes and ranch expansions that are paid by the friends of direct-state aid. They have kept his roof and his ammunition, to oppress and to relief his patronage. Therefore, if someone is defending this man. Think of his track-record and all the souls he has left behind. Peace.

IMF statement on Uganda’s current Economic framework has a “grey” list, but a steady core inflation!

The International Monetary funds have concluded yet another visit to Uganda. As todays statement and insights to the economy is dim. There is not much prospects or much goodness to take out of it. Unless, you are thinking to invest while the inflations are rising and hoping it does not stop. Even though the needless to say, it has been like this before after General Elections in Uganda. That the economy has suffered a blow and a shock, which has hurt the economy and food prices. Therefore, sparked demonstrations and uprisings, like that last big one in Walk to Work and Activist for Change in 2011. It is clearly on the same path, but just in 2017 instead. President Yoweri Museveni likes to repeat himself!

“Inflation has edged up, mainly reflecting the effects of the drought. Food price inflation rose from 5 percent year-on-year in September 2016 to 22 percent in April 2017. With this, headline inflation recorded 6.8 in April 2017. Core inflation stood at 4.9 percent, in line with the Bank of Uganda’s (BoU’s) 5 percent target” (IMF, 2017). These numbers are showing the decline and increase of common commodities, even if the Core Inflation is around the estimated level; the food prices are showing the problems in the economy in general.

“The authorities have made some progress on structural reforms. Two structural benchmarks have been met on time, three with delay, and the remaining five are pending. Most notably, the authorities moved forward the legislative agenda that will support Uganda’s exit from the Financial Action Task Force “grey” list—the laws now await President Museveni’s assent. The Ministry of Finance, Planning, and Economic Development published reconciled reports on the stock of outstanding arrears at end-June 2016 (3.2 percent of GDP). Pending reforms include sending the BoU Act Amendments to Parliament, publishing the report on end-December unpaid bills, and sending to cabinet a policy for regulating mobile money” (IMF, 2017). The GoU and President Museveni have not complied totally and made laws objectively transparent. Therefore, there are laws awaiting the approval and be requested to Parliament, as the state reserves and budgets are still enforced with the will of the President. In addition, a proof of the maladministration is the amount of budget arrears that was in last budget year, which will hit the economy, as the bills have to be paid this year.

“Uganda’s external position is broadly consistent with fundamentals and desirable policies in 2016. The current account deficit is projected to temporarily increase over the next 5 years as infrastructure and oil sector investment ramp up further. Achieving the envisaged growth dividend of these investments is essential to maintaining external stability—just as for public debt sustainability. International reserves at end-December 2016 stood at US$3 billion (5¼ months of next year’s imports), above the adequacy level suggested by the IMF’s metric for credit-constrained economies. Going forward, the BoU can purchase reserves opportunistically and would meet the EAC convergence criterion of 4½ months of imports. The flexible exchange rate regime is serving Uganda well” (IMF, 2017). Therefore, the government and IMF envisions that the future prospects of oil monies will be sustainable for the current loans into infrastructure projects. It even envision it and with that will ensure external stability and trust into the economic climate of Uganda, that shows that the trust in future gains is the ones; that makes people have faith in the Ugandan economy.

This is all here proof in stated language that the IMF are looking through the budgets and their laws. Nevertheless, is not addressing the trillions shillings suddenly disappearing, neither the Presidential Handshake, as these are just figment of imagination for the foreign economic advisors. They just do not see it or does not want to see it. Peace.

Reference:

IMF – ‘Uganda: Staff Concluding Statement of the 2017 Article IV Consultation Mission and Discussions for the 8th Review under the Policy Support Instrument’ (16.05.2017) link: http://www.imf-fmi.africa-newsroom.com/press/uganda-staff-concluding-statement-of-the-2017-article-iv-consultation-mission-and-discussions-for-the-8th-review-under-the-policy-support-instrument?lang=en

Ugandan economy could get Oil-Shocks due to external factors, recent BoU report claims!

Surprise, surprise the Bank of Uganda (BoU) has made a working paper on the possible consequences of the oil price, the oil exports and the oil imports on the Ugandan economy. This didn’t exceed my expectation of a report or paper, but said enough to clearly anticipate changes in the economy with the coming export. Even as the BoU called the domestic oil production in embryonic stages, which means the real impact will come when it is closer petroleum production the GDP and CPI feel more impact of the oil prices and the volumes exported from the Lake Albert Basin.

That the Ugandan State and the Republic of Uganda, should know that the fresh foreign exchange and currency into the economy, as the domestic parts of petroleum is not having big impact on the economy! Still, the export can change it as the oil prices and change the consumer price index for instance. Take a look!

One such shock that is a source of major concern and risks to monetary policy-making in Uganda is the oil shock. To our knowledge, the effects of oil shocks in Uganda, to date, have not yet been analyzed. The objective of this paper therefore, is to analyze the nature and importance of oil shocks to Uganda’s economy in a dynamic framework” (Nyanzi & Bwire, P: 4, 2017).

According to the Uganda’s Ministry of Energy and Mineral Development (2012), oil provides about 10 percent of Uganda’s energy requirements – the rest is sourced from the small and underdeveloped and unreliable electricity sub-sector and the cheap biomass energy. The oil sector was also deregulated in 1994, under the broad structural reforms implemented by the Government of Uganda, which effectively eliminated oil prices subsidies. Uganda is endowed with commercially-viable oil reserves, but domestic oil production is in embryonic stages. Consequently, all of the oil-energy needs of the country are satisfied by imports” (Nyanzi & Bwire, P: 8, 2017).

The results of the variance decomposition in regard to oil shock are not entirely unexpected, given the structure of Uganda’s economy. Oil and its products constitute 8 percent of total intermediate consumption and 10 percent of energy requirements. In addition, oil is crucial to electricity supply in Uganda because hydro-electricity is unreliable and insufficient. This implies little or no substitutability of oil with hydro-electric energy in production in case of adverse oil shock, which could justify the long-run 20 percent variance in output due to oil shocks. Regarding consumer prices, the small percentage of variance in consumer prices due to oil shocks is justified by the small weight of oil in the CPI basket. Oil constitutes about 1 percent in the 2009/10 rebased CPI basket, of which 0.8 percent is oil for personal transportation and 0.2 percent a source of liquefied energy at home. These numbers are not surprising given that over 75 percent of the population live in rural areas and depend mainly on wood and charcoal as a source of energy, and that rates of car ownership are generally low. Moreover, the main source of short-run volatility in the Uganda CPI is weather-related factors affecting food prices. This leaves the bulk of fluctuations in the core consumer prices (Comprising over 80 percent) explained by demand” (Nyanzi & Bwire, P: 18, 2017).

Oil shocks are transmitted through the supply channel, as a shock that increases the international price of oil leads to opposite movements in real output and consumer prices in Uganda” (Nyanzi & Bwire, P: 19, 2017).

It is hard to say how it could impact and how the petroleum production and exports will change the economy, how the prices and the inflation, as the measure of how much the price of the crude-oil will be at the given time. That the government has secret agreements with oil companies and also agreements with other to build the crude-oil pipeline that goes to Tanzania. Therefore, the reaction in the economy is not yet known, but with the background and knowledge of the how it is now. Most likely a real output and change in consumer prices in Uganda.

That will be an oil-shock no-one can be prepared for. Unless the Government and Parliament created legislation and policies who might soften the change of the economy. Therefore, with this in mind, the National Resistance Movement, the State House and the President Museveni have work to do. That is if they consider the implication the petroleum production and exports will have on inflation, currency value and consumer prices index as well. This report should open some eyes into it, but it should not be surprising. Peace.

Reference:

Nyanzi, Sulaiman & Bwire, Thomas – ‘Working Paper No. 04/2017 – The Macroeconomic responses to Petro Shocks for Uganda’ (May, 2017)

Al Jazeera’s interview undress Mzee’s so-called Democracy!

Again, President Yoweri Katuga Museveni tried use the trick of democracy, as the ballots and the Electoral Commission, didn’t cook the numbers like a drunk cafeteria staffer and tried to sell it Michelin Star Restaurant. Mr. President has try to sell it other numb-sculls than me, but I am not his target audience.

Let me address one thing Al-Jazeera did wrong, they called him a five time term President, as off his elections. Certainly, the Media House are forgiven for giving way to the propaganda arm of the Movement and their rewriting of history. But there is decade when he wasn’t elected and postponed elections. Sort of the same trick President Joseph Kabila tries to pull of in Democratic Republic of Congo. Well, that is another story for another day. What Al-Jazeera does is to erase the years between 1986 to 1996. Since he wasn’t elected nor had an election, as the rebel and two time General going in and getting rid of the ones on the throne. That is easy to forget as the time past and most of his citizens are born since the 1990s.

Well, before more comments. Look at this interview and the comments of the long-term dictator and ruler of the Republic of Uganda.

Outtake of the Interview:

Museveni: Have you heard of something called democracy? Democracy means you elect the people you like. We had elections about one year ago and my party won 62 percent of the vote. That does not show that the people of Uganda are fed up of our party because they have voted for us five times.

Al Jazeera: According to some reports, you have demanded to be given the right to choose the next leader of Uganda. You were unsuccessful.

Museveni: No. I cannot demand that. The people are there. The people have been electing me, in spite of Al Jazeera.

Al Jazeera: Are you going to run for another term?

Museveni: We follow our Constitution.

Al Jazeera: There are reports that you are about to change the Constitution so that you can run for another term. Is that going to happen?

Museveni: I cannot change the Constitution because I do not have that power.

Al Jazeera: Reports also say that you are now preparing your own son, who is now highly elevated in the army and he’s your special adviser on certain issues. Your wife is also a minister – she sits next to you on the cabinet. Reports are you are preparing one of the two to become the next president of Uganda. What do you say to this?

Museveni: Why should I prepare them? The people of Uganda will choose the one they want.

Al Jazeera: People in your family are very close to you right now, closer than anybody else. There are reports that you are focusing on your own relatives and this is nepotism – giving them higher seats in the government. Isn’t that nepotism, Mr President?

Museveni: That’s not nepotism. The few members of my family that are involved, I involve on their own merit. My wife, against my advice, stood for election and had the biggest majority in the whole country – because the population appreciate what I have done(Talk to Al Jazeera, 2017).

I wonder if President Museveni feels that as a sole candidate and NRM Flag-Bearer for three decades, that he knows there hasn’t been any suggestion of other people running the country. Why are Dr. Kizza Besigye, Dr. Olara Otunnu, Dr. Paul Ssemogerere and Amama Mbabazi never became Presidents after you? Certainly one of them could have been legitimate presidents and de facto leaders as well. Not only you Mr. President of a so-called democracy? But hey, you took the grip of the nation by the gun and never let-go!

He speaks about electing him, if he means he puts up elections and than makes sure rigging it and using the military to spread fear in the villages; than he would be closer to the actual fact. The time when he was popular have gone, as the pictures only today in the villages when Besigye rode around the whole village turned-up to the car of the opposition leader. Something that wouldn’t occur on the watch of the President, as people more fear him and the security forces around him.

That President Museveni speaks of respecting the constitution, he has already pigeon-hold it to fit the paradigm of longevity of himself. If someone we’re up to change the age-limit on the Presidency, it wouldn’t be out of his character to drop of a few suits to the MP’s and have a summit at Kyankwanzi where the subject came and the Movement would celebrate in the progress the party has made. So the use of democracy and constitution is just fronts to look uptight, when the reality is much more bleak.

Let’s be clear if the Ugandans really could choose, it wouldn’t be you, you are already old milk that is not drinkable. The fatigue and disguise of so-called democracy doesn’t work anymore, the gig is up Mr. President. The evidence is right there, on the kangaroo court, the post-election violence and the disappearance of governance from the Central Governance. It is all circled around you and not the institutions of the government. If so there wouldn’t be given food to district who doesn’t need so and the districts getting who needs so are not getting enough. Just as the proof of the food relief in Lira, Abletong and Dokolo this weekend.

The first lady and Minister for Karamoja says she will not be seeking re-election as MP for Ruhama County in the 2016 elections. In a statement to her constituents, Mrs. Museveni said she had reached the decision after a lot of thinking and prayer. She asked that her constituents to understand her and accept her message within grace” (NTV Uganda, 22. May 2015).

So how Mrs. Janet Museveni is on merit and was elected to her role as Minister in his cabinet, is not only violation of her place, but he directly lied to Al-Jazeera, but calling Uganda a Democracy and calling himself elected by the people is a forgery. President Museveni knows it and the world does to. The rigging and the pre-ticked ballots is known by the ones googling away. The history on how he changed the constitution in the past is there too. Not like it is not well known. The ignorant are the ones who doesn’t know.

That President Museveni uses the Flying Squad or Special Forces Command to kill and get of rid of dissidents isn’t a rumor or a mirage, it is mere fact of sadness of overstepping powers. As the ones with detaining dissidents and opposition voices like Stella Nyanzi, but also others. Therefore, keep in mind that Uganda isn’t democratic. That President Museveni is on his 7th Term, not on his 5th that is National Resistance Movement rewriting of history and the world has swallowed it! Peace.

Reference:

Talk to Al Jazeera – ‘Yoweri Museveni: A five times-elected dictator?’ (29.04.2017) link:http://www.aljazeera.com/programmes/talktojazeera/2017/04/yoweri-museveni-times-elected-dictator-170429102326955.html

Opinion: Does Dr. Abed Bwanika, Maj. Gen. Benon Biraaro or Elton John Mabirizi have a voice after the election?

UGDebate16 Prayer

I have just wondered and continue to wonder if these three brothers really have standing and place of political platform to gain momentum at all after the General Election of 2016. These both are veterans and people who have tried more times to be elected as the President of Uganda, without succeeding for that matter. Not because of their words or anything, because like for the rest of the candidates the Electoral Commission has been rigged for President Museveni, to be re-elected for another yet again!

Dr. Abed Bwanika, is a character and a man of words, a man who doesn’t fear to speak his mind and opinion. That is what it seems. The man of the People Development Party (PDP), an opposition politician who has been claimed by Tamale Mirundi of being a NRM diehard; so the man who has lost land in Lwengo are still in cahoots with the ruling regime if the AK-Mouth Mirundi is true to his words. Bwanika usually only appears like every blue moon, but after the recent election has been more visible, tried to talk of dialogue between FDC and NRM. Still, the evident wish of concluding that seems far-fetched. A person can wonder why he cares and what are his motives?

Than you have Maj. Gen. Benon Biraaro, the Farmers Party Presidential Candidate who was a man of reason within the general election and campaign. That even after the house arrest of Dr. Kizza Besigye tried to visit and talk about possible dialogue with the Movement or the NRM. Still, he has not been that visible after the election. So he is like a ghost inside some buildings and venues in Uganda.

Than you have the youthful and funny character Elton Joseph Mabirizi who ran as independent candidate in the recent election in the The Independent Coalition (TIC), who I remember even meet up with Dr. Kizza Besigye while he was house-arrested as well, they had a decent talks there. Seems like a decent fellow, has even had a few TV spots after the election. His businesses keep him occupied and busy, his private schools for instance. So it is not like he needs politics. Even as he addressed the public like this on the 15th February: “Museveni lied again about providing sanitary pads to school going children during the last elections which he rigged!” This he said after the Monitor article that the schools wouldn’t give away sanitary pads to female students as promised during the general election of 2016.

Uganda EC Wall

These three are just a few of them, which have gone away in the wind, that isn’t main stay or having a meaningful place on the political map of Uganda. These we’re three persons or individuals we followed and swallowed their words during the general campaign. They showed character and flair. But went away when their time for seeking office went away, certainly themselves wish they more say after the elections. Still, their place and their microphone dwindle away as if they we’re able to build an organization or supporters, which they could use on the next go-around. Maj. Gen. Benon Biraaro has been there before and still doesn’t have a big organization behind; the same can be said with Dr. Abed Bwanika. It’s a different matter for Elton Joseph Mabirizi who went in without anything, but still worked together with another independent candidate Maureen Kyala Waluube who was the The Independent Coalition (TIC). I haven’t mentioned her, because she has stirred lot’s of madness on social media after the general election and continues to stir the pot. Not that she has a dozens of supporters, but she has the Mwenda effect online.

So do you wonder what these people are trying to achieve after the election? Do you wonder if they really want to build political parties or are they needed figures so President Museveni can say the election are democratic since he has enough candidates that there is initial election, even if the result is already fixed. So he can show that he opens the doors for many to show up, but has an electoral commission that closes the door when the ballot is cast.

These individual’s that was in the spotlight is dimming and is less there, their suction and their quotes isn’t there. Their focus is back to life or whatever they did before the election. So you are now a year since the ballot was cast the people who run for the ballots is not really there and you wonder if these will pop-up again when the Movement needs again. Because the Movement, they needs a road-show and candidates to spring up from the elephant grass. Certainly, it can seem so and wouldn’t be wrong to understand it so.

If you understand it differently than please say so, still the voices of these three has lingered and lost their value as they are not steady in the spotlight. They do not have a civil servant position, they are not MPs, and they are not RDCs or any other important level of public elected officials. Therefore, the three doesn’t have a giant say, neither do these ones take part of Capital Gang or NBS Frontline, therefore the voice is not in the midst of the national debate. They do not engage in the newspapers or in public in general. So there are many more reasons than just being out of office, because Norbert Mao isn’t an MP, but a leader of a party and steady on NBS Frontline, that is why his voice still matters because of the steady exposure.

So, will these men change or will they stay in the outskirts and suddenly embrace it when the elections return and the spotlight are on those that engage in that? Because that is when President Museveni needs gullible people and people he knows doesn’t have enough support to really challenge him. Peace.

IMF Executive Board Completes the Seventh Review Under the Policy Support Instrument for Uganda (11.01.2017)

UGX Pic

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.

Uganda’s Growth in the Era of Oil and Volatility (Youtube-Clip)

“Despite the slump in global oil prices, the start of commercial oil production in Uganda in 2018 offers long-term prospects to diversify the country’s economy and catapult it to upper middle income status in 30 years, according to the country’s new economic memorandum” (World Bank, 2016).

Press Statement: IMF Executive Board Completes Sixth PSI Review for Uganda and Approves One-Year Extension of the Program (07.06.2016)

Bank notes Uganda

WASHINGTON D.C., United States of America, June 7, 2016 –  The Executive Board of the International Monetary Fund today completed the sixth review of Uganda’s economic performance under the program supported by the Policy Support Instrument (PSI).1.

In completing the review, the Board approved the authorities’ request for a one-year extension of the current PSI arrangement to facilitate policy continuity and allow sufficient time for ongoing structural reforms to progress and also granted a waiver of the nonobservance of the end-December 2015 assessment criteria on the overall deficit of the central government.

The PSI for Uganda was approved by the Executive Board on June 28, 2013 (see Press Release No. 13/78). Uganda’s program under the PSI aims at maintaining macroeconomic stability and alleviating constraints to growth. The program supports the authorities’ objectives on reforms to the monetary policy framework, tax revenue mobilization, public financial management, and financial sector development. It also backs efforts to improve the business environment, including by preparing the economy better for oil production.

Following the Board discussion, Mr. Min Zhu, Deputy Managing Director and Acting Chair, made the following statement:

“Despite external shocks, and amid election-related uncertainty, Uganda’s economy demonstrated resilience, with robust growth, low inflation, and strong international reserves. However, structural reforms have lagged and need to be revitalized to enhance competitiveness, promote economic diversification, and foster sustained and inclusive economic growth.

“Economic policies will remain focused on keeping inflation low and boosting growth. Fiscal priorities include shifting public spending toward infrastructure and poverty-alleviating expenditures, boosting domestic revenue mobilization, and enhancing public investment efficiency. Continued fiscal prudence could facilitate further monetary policy easing, which would help ease tight credit conditions.

“More progress is needed on key structural reforms. Prompt parliamentary approval of the Public Financial Management Act regulations in line with international best practice, decisive action to reconcile and validate the stock of domestic arrears, and finalizing the charter of fiscal responsibility are paramount steps to further improve governance and strengthen the budget process. Final approval of legal amendments to the Bank of Uganda Act will strengthen the central bank’s independence and support the inflation targeting regime.

“Vigilance is needed to ensure continued financial stability. Plans to further strengthen prudential supervision in line with the Basel III guidelines are welcome. Ensuring that regulatory oversight keeps pace with financial innovation will help preserve financial stability. Prioritizing prompt parliamentary approval of the Amendments of the Anti-Money Laundering Amendment Act and the Insurance Act should help Uganda exit from the FATF gray list, further strengthening the investment climate.”

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 (seehttp://www.imf.org/external/np/exr/facts/psi.htm). Details on Uganda’s current PSI are available at imf.org/uganda.

Interim Statement of the Commonwealth Observer Group: On the Ugandan General Election 2016 (20.02.2016)

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