Business
IMF says Uganda’s economic performance is satisfactory
Publish Date: Jun 30, 2014
IMF says Uganda’s economic performance is satisfactory
IMF Managing Director Christine Lagarde (R) being greeted by local singers as she attends the opening session of the Africa Rising Conference, on Thursday at the Chissano Conference Center in Maputo. PHOTO/AFP/AMF
  • mail
  • img
newvision

By Samuel Sanya & David Mugabe

The International Monetary Fund (IMF) has hailed the Government’s commitment to infrastructure development, the effective control of inflation and the start of the treasury single account to manage the Government payroll.

The IMF executive board has just completed the second review of Uganda’s economic performance under a Policy Support Instrument that was approved on June 28, 2013 and rated Uganda’s economic performance as ‘satisfactory’.

“Uganda’s recent economic performance has been broadly satisfactory with robust growth, low inflation, and strong international reserves,” David Lipton, the IMF deputy managing director and acting chairman, said following a board discussion.

“However, the Government net domestic financing has expanded beyond the programme ceiling and private sector credit growth has remained constrained,” he added.

The IMF notes that the Government must resist spending pressures, limit domestic borrowing to programmed levels and curb the use of supplementary budgets. This will allow implementation of important infrastructure projects and social programmes, IMF argued.

“Significant progress has been achieved on institutional reform. The authorities have implemented sound public financial
management reforms and adopted a new methodology to manage unpaid bills,” IMF said.

They noted that completing the introduction of the treasury single account, making efficient use of the upgraded payments
and payroll systems, and adopting the Public Financial Management Bill promptly are paramount steps to further improve
governance, strengthen the budget process, and ensure sound oil revenue management.

Reacting to the IMF rating, Kelvin Kizito Kiyingi, the acting director of the communications department at the Bank of
Uganda, said the positive rating will further foster confidence in the management of our economy.

Jim Mugunga, the finance ministry publicist said: “We are happy about the report and it is consistent with the deliberate reforms that we are implementing together with the development partners.”

On the slowdown in private sector credit growth and revenue shortfalls, he noted that the slowdown is associated a lot more with the impact of the regional social-political issues rather than commercial ones.

Also related to this story

Africa needs massive investment in infrastructure - IMF

Museveni, EXIM Bank chief meet over infrastructure development

Integration will transform, make region prosperous

Museveni travels to Kenya for Northern Corridor infrastructure summit

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
20 firms probed over money laundering
It is feared that up to sh56b could have laundered through the accounts at a city bank, United Bank of Africa (UBA), using stolen cards....
Transport fares rise as Christmas draws nearer
Tis the season once again and as is with festive period, public transport fares have risen around the country....
Inflation rises to 1.4%
Consumers paid sh1.4 more for manufactured goods in October compared to the same period in 2013 as the sector struggled to recover from the lag-effects of the 2011 economic challenges, amid volatilities in foreign exchange....
Kukustar: New vaccine against newcastle to empower farmers
It was the welcoming smiles. Not the long distance from Mbale town. Not the shrubby path to Mary Goretti Mboizi’s humble home in Bunamwera village, Kibuku district that struck me as I settled down to listen to her story....
Uganda is debt sustainable, says finance ministry
By March, China had lent Uganda over $336m (8% of the total debt) while India had lent over $50m (under 2%)....
Partnership seeks to boost television penetration
PCS and a regional pay television service provider enter a partnership expected to boost television penetration in areas without access to hydroelectricity....
Do you agree with the ban on the export of maids?
Yes
No
Can't Say
follow us
subscribe to our news letter