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
Oil prices resume downward trajectory
World oil prices have resumed their downward trajectory following comments from key Middle Eastern oil producers that they have no plans to cut output....
20 firms probed over money laundering
The Police are probing 20 companies and individuals suspected to be involved in money laundering....
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%)....
Do you agree with the ban on the export of maids?
Yes
No
Can't Say
follow us
subscribe to our news letter