Uganda Should Export More to Attain Economic Growth – BOU Deputy Governor

Bank of Uganda Deputy Governor, Dr Louis Kasekende

Kitgum District Member of Parliament Hon Beatrice Anywar better known as Mama Mabira this afternoon spoke fervently about her decision to break her party ranks to support NRM dissident   Hon Amama Mbabazi in the 2016 Presidential Elections.

The opposition Forum for Democratic Change [FDC] strongwoman said she was no less a party member, seek but one who got tired of stagnation.

“I am still a strong FDC member, but I want to Go Forward,” she said to loud cheering at Mbabazi’s inaugural campaign rally at Nakivubo stadium.

The downtown 15000 sitter was filled to brim, by the former Prime Minister after he was successfully nominated by the national electoral Commission at Namboole stadium.

Hon. Anywar who made her name when she led a campaign against the sale of the country’s biggest natural forest Mabira, told the crowds that like she emerged triumphant in the campaign, she would make ensure that her candidate makes it to State House next year.

“We cannot remain in one place forever. 30 years were have been rotating without moving. We realize that time has come for us to move from this point to the next.”

Anywar noted her decision to go against her party’s candidate was informed by the strongly felt need for a ‘hybrid leader’ – one who would unite the entire opposition against the ruling government.

“Mbabazi has demonstrated that he can do that. This battle we started today doesn’t end here at Nakivubo. We’ll fight on until we are in State House,” she added, her voice rising.

The Opposition FDC, whose candidate Col Kizza Besigye is being nominated on Wednesday, has since shrugged off Mama Mabira, noting that like everyone else she is free to choose a party of her choice.

They however lambasted Hon Amama Mbabazi for tapping only into the opposition support and not the ruling party from which he came.

Uganda must strengthen its balance of payments(BOP) by expanding exports of goods and services, mind if the country is to achieve its long term development objective of raising the economy to middle income status, cialis 40mg Bank of Uganda Deputy Governor, Dr Louis Kasekende has said.

The Deputy Governor was delivering a key note speech at a High level Policy Dialogue at Makerere University, Kampala on Tuesday.

The dialogue was held under the theme – Uganda’s Economy: Directions, Prospects and Challenges.

According to Kasekende, expanding exports is necessary to narrow the trade and current account deficits, and generate the resources to service the county’s growing foreign liabilities.

“Alongside this, we must attract much more private investment into labour intensive, modern, formal sector businesses, to strengthen the growth of labour productivity,” he added.

These two goals, according to the deputy governor are linked because an expansion of traded goods production requires private investment in modern industries.

Kasekende said to achieve these mutually compatible goals will require focusing on sets of policies.

“First, we cannot expect to improve our balance of payments without a competitive real exchange rate, he said.

He added that the real exchange rate is the most important relative price for producers of traded goods, because it is crucial for their profitability.

Kasekende said planned large scale public sector projects which will be financed mainly with external capital are a source of currency mismatch.

He said some of these projects will add to Uganda’s growing external liabilities which will need to be serviced with foreign exchange payments while in the short run, they will make little contribution, even indirectly, to earning or saving foreign exchange.

“It is crucial to maintain healthy buffers of foreign exchange reserves to protect the balance of payments against adverse shocks, of the type we have suffered over the last 18 months, when export earnings stagnated and foreign direct investment declined,” he noted.

He urged Government to implement measures to improve the business environment if Uganda is to attract more private investment in productive enterprises.

According to the deputy Governor, the business environment is crucial for private investors because it affects the costs of doing business and the risks involved.

He noted that in the 2015/16 Global Competitiveness Report, corruption was cited by respondents in, the business community as the most problematic factor for doing business in Uganda, well ahead of access to finance, taxation and the supply of infrastructure.

He divulged that that it the region does not tackle this problem, the investments in public infrastructure and in deepening the financial system will not be sufficient to mobilise the private sector investment the Ugandan economy needs to drive its structural transformation.


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