Business
Govt role key in liberalised market, says Kasekende
Publish Date: Jul 26, 2014
Govt role key in liberalised market, says Kasekende
Deputy Central Bank governor Louis Kasekende
  • mail
  • img
newvision

By Vision Reporter

Deputy Central Bank governor Louis Kasekende has weighed in on the liberalisation debate, saying free markets are good, if governments are involved.


“Market failures exist, but the role of governments is critical as evidenced in the West,” he noted.

Appearing as a panelist at the launch of the African Development Bank (AfDB) 2014 African Economic Outlook, Kasekende warned of the possibility of another crisis and the need to rebuild the fiscal space as well as reduce the fiscal deficit.

The deputy speaker of Parliament, Jacob Oulanyah, kicked off the debate last week, saying the flurry of private foreign companies and banks seems not to be serving the country’s interests, especially with borrowing rates spiraling out of reach of the average Ugandan and the huge profit repatriation by foreign firms.

Commenting on the outlook, Kasekende noted that the continent is on a recovery trend having overcome the 2009/2010 financial slide.

“One clear message is that countries need peace and security. We must invest in peace,” he noted.

Dr. Kayizzi Mugerwa, the acting vice-president and chief economist at AfDB, while presenting the report said efforts must be made to boost and support value addition, especially for agriculture. He cited the discrepancy in trade relations between Africa, the West and East, where for instance cocoa beans exported to Japan attract no import levy, but when cocoa producing countries add value on the crop and attempt to export, they are slapped with a 20% import tariff in Japan.

“Why don’t you let them add a bit of value. If that happens, it would have an incredible impact on incomes,” he advised. He advised African states to form synergies where they can have items that are used across the continent such as matatus (commuter taxis).

RELATED ARTICLES

Microfinance interest rates high, conference seeks solution

BOU targets commercial banks over high interest rates

Kampala shops closed over interest rates

 

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
What it takes to keep a family business afloat
The family has been the beginning of many successful businesses world over. Global brands like Walmart, Samsung, Fiat and BMW grew from small family companies to become billion-dollar empires....
Declining tea prices blamed on poor quality green leaf
Tea farmers across the country have been asked to pick only the recommended green tea leaves so as to curb the decline of international tea prices....
More work still needed on Tororo-Pakwach railway line
Rift Valley Railways (RVR), the firm that has rail services concessionaire in Uganda and Kenya, says more work needs to be done for the Tororo-Pakwach railway to be fully operational....
Bunyoro advised to grow more coffee
Bunyoro Kitara Diocese Bishop, Nathan Kyamanywa has urged people in the sub-region to grow more coffee if they are to improve their household incomes and live better lives....
CEOs to parliament: Stop politicking and address country’s economic concerns
Chief executives of leading industries have called for a structured engagement with government especially parliament to ensure the legislature focuses on the country’s economic needs....
Museveni launches construction of Soroti fruit factory
CONSTRUCTION of a multibillion fruit processing factory based in Soroti district has been launched by President Museveni with emphasis to grow more fruits...
Should bride price be made optional?
Yes
No
Can't Say
follow us
subscribe to our news letter