Author: C-News Bureau Chief

98% of Ugandans Have Less Than Shs 9 million in Banks

The Kampala Capital City Authority (KCCA) has made significant strides in various sectors during the financial year 2023/2024, with seven key achievements standing out. Among these is establishing the Kampala Traffic Control Center at City Hall. “The building is completed and ready for installation of the equipment and it will serve as the base for traffic control in the city. We are accordingly signalizing 27 junctions across the city, to ease congestion and improve road safety,” notes a statement released on July 18. Construction is already underway at key roundabouts, including Mulago, Mulago Farewell Home, Kubiri, and Speke Road, while…

Ramathan Ggoobi, the Permanent Secretary of the Ministry of Finance, Planning and Economic Development and Secretary to the Treasury emphasized the importance of fiscal discipline and proper wage management as he announced the Shs 5.899 trillion first quarter expenditure releases for the financial year 2024/25. “No recruitment should be done without clearance from the Ministry of Public Service after ascertaining the availability of adequate wage from this Ministry,” Ggoobi stated on Tuesday. He highlighted that accounting officers must ensure every promotion and re-deployment of staff is supported by adequate wage provisions. “All Government operations this financial year will underpin fiscal discipline, budget credibility,…

In the first quarter (July-September 2024), the Ugandan government released Shs 5.899 trillion, representing 21.3% of the discretionary budget. This release supports various sectors and provides a clear picture of the biggest and lowest beneficiaries of the allocations. Biggest Beneficiaries Wages and Salaries: A substantial portion, Shs 1.990 trillion, was allocated to cater for wages and salaries across the government, marking it as the largest beneficiary. This includes: Shs 323.50 billion for pension and gratuity. Shs 308.75 billion for local governments, including Shs 112.28 billion for education capitation grants for the third term of the school year. Shs 95.26 billion…

KAMPALA: In a robust display of economic resilience, Uganda’s economy has been bolstered by significant inflows from Non-Governmental Organizations (NGOs) and projected increases in Foreign Direct Investment (FDI). According to the State of the Economy report for June 2024, these factors have played a crucial role in stabilizing the Ugandan shilling against the US dollar, despite global financial pressures. “Foreign Direct Investment, projected to exceed 5 percent of GDP over the next two years, is expected to be the primary source of financing for the current account deficit,” the report notes. FDI typically involves foreign firms or individuals investing in…

KAMPALA: In a strategic move, the Bank of Uganda (BOU) has initiated a Domestic Gold Purchase Program to build the country’s foreign reserves and mitigate risks associated with reserve investments. This initiative, highlighted in the State of the Economy report of June 2024, is set to have wide-reaching implications for Uganda’s economy. “The gold purchase program will help accumulate foreign currency reserves and address the associated risks in the international financial markets,” the report states. By purchasing gold directly from artisanal miners, BOU aims to stabilize its reserves and support small-scale miners’ livelihoods, potentially creating positive ripple effects across other…

Uganda’s inflation remains among the lowest in the region, averaging 3.2 percent over the twelve months leading to May 2024. However, annual headline inflation rose to 3.6 percent in May 2024 from 3.2 percent in April 2024, and core inflation increased to 3.7 percent from 3.5 percent, according to Bank of Uganda Deputy Governor Michael Atingi-Ego in a recent monetary policy statement. “This uptick is primarily driven by rising costs in healthcare, education, transportation services, and higher prices for solid and liquid fuels,” Atingi-Ego said. “Services inflation climbed to 6.2% from 5.4%, and electricity, fuel, and utilities (EFU) inflation rose…

Uganda Cranes Coach Cheers 2025 AFCON Draw FUFA and Uganda Cranes officials have expressed satisfaction with the draw for the 2025 Africa Cup of Nations (AFCON) qualifiers, which pits the national team against South Africa, Congo Brazzaville, and South Sudan. Uganda Cranes’ coach, Paul Put, described the group as fair, emphasizing the competitive challenge ahead. “Of course, there are no easy games and you cannot underestimate anything, but I think it’s manageable,” he remarked following the draw conducted in Johannesburg, South Africa on July 4th. South Africa, winners of the AFCON title in 1996, pose a significant threat in Group…

Kampala, Uganda – Stringent collateral requirements imposed by commercial banks are significantly hindering women-owned businesses from accessing crucial financial support through Uganda’s Small Business Recovery Fund (SBRF), according to a recent policy brief by the Economic Policy Research Center (EPRC). Established in November 2021 with a combined allocation of UGX 200 billion from the government and participating financial institutions (PFIs), the SBRF aimed to aid micro and small businesses grappling with the economic fallout of the COVID-19 pandemic. However, despite these efforts, a mere 17% of the funds had been disbursed by September 2023, highlighting systemic challenges in reaching the…

On July 4, 2024, the Ministers of Security and Works and Transport provided an update on the implementation of the Intelligent Transport Monitoring System (ITMS) project, revealing that 1,091 vehicles from various ministries had been fitted with new registration plates. Despite falling short of the required numbers due to persistent logistical challenges, efforts are underway to resolve these issues. Over the years, according to the ministerial statement, motor vehicle ownership in Uganda has risen to about 2,145,988 vehicles as of July 3, 2024. “This growth has brought about challenges such as crime involving motor vehicles, road traffic accidents, multiple number…