BoU Preps for Global Financial Instability Risks

Unilever Uganda has educated over 100 women in a move aimed at promoting proper nutrition, information pills rx hygiene, approved about it health and personal care.

As an incentive, the ladies were rewarded with a wide range of Unilever products to improve hygiene and wellbeing in their homes.

Dr. Miria Matembe, a gender and equality activist who attended the sensitization campaign commended the partnership between Unilever and Ntinda Ladies Clubs saying that the initiative is not only driving the health and nutrition agenda but also providing a platform for knowledge and skills transfer.

This she added would be instrumental in enabling the Ladies get an additional source of income to support their families.

She also urged the women to have a goal and purpose in life that would enable them to contribute positively to building the nation based on social justice through their homes by raising upright citizens of Uganda.

“Unilever Uganda has been a partner in the enhancement of Ugandan homes and businesses for over sixty years. As a result, we can confidently say that we are more than just a manufacturer of products. We are part of the Ugandan families, the Ugandan heritage and an enabler of better and easier living and will continue to do so,” said Unilever Uganda Marketing Manager, Diana Nabukenya.

During the sensitization campaign, members of the Ladies’ Club also showcased a variety of hand made products. The Ladies’ Club meets weekly to discuss their saving schemes and how to invest their money in various activities that yield dividends to members. They also provide a platform for educating and imparting various skills to support their families and homes.
East African Legislative Assembly (EALA) Member of Parliament, tadalafil Fred Mukasa Mbidde has called upon the Ugandan parliament to join in the struggle so as to resolve the impasse surrounding the Standard Gauge Railway (SGR) construction which was launched early this month.

This comes following reports of corruption that are likely to have occurred that led to the cancellation of the MoU between government and China Civil Engineering Construction corporation (CCECC) by Works State Minister, here John Byabagambi in preference to China Habour Engineering Company Ltd (CHEC).


It should be remembered that in September, illness MPs led by Theodore Ssekikubo tabled a motion before parliament calling for a selected committee to investigate circumstances under which the MoU was cancelled but the debate could not commence since the speaker ruled that Government and Byabagamba should first give their position.

Mbidde said the Ugandan Parliament is beginning at the tail end which needs to know that even before the decision was established that East Africa runs a SGR, there was a report which was produced which was seeking to reduce the cost to 30 percent and was neglected by the presidents.

“The proposal was that we adopt an increment of another truck line in addition to existing state of affairs of the railway so that we can reduce to 30 percent of the cost other than uprooting the whole infrastructure and establishing a new SGR,” Mbidde explained.

“It is so embarrassing that the presidents during their 14th Infrastructural retreat Summit in Nairobi rejected the proposal; but why reject a proposal seeking to reduce the cost when you are a highly impoverished country.”

He therefore noted that corruption started at that very point hence appealing to Parliament to rally behind him so as to seek an interim injunction in the East African Court of Justice (EACJ) over the whole construction undertaking.

“About who has taken the tender, that question can no longer be resolved by Uganda but the EACJ because we urgrntly need to restore sanity here.”

Mbidde urged Ugandan MPs to look beyond what is happening in Uganda and re-establish a due diligence on how we agreed to the SGR that disregards the use of the existing infrastructure by establishing another truck line which was an exorbitant decision taken.

The standard gauge railway line is expected to cost over $11 billion and will run from Mombasa to Malaba, Kampala and then Kigali, Rwanda and later to Juba, South Sudan.

Bank of Uganda has decided to maintain the Central Bank Rate (CBR) at 11 percent for the next two months of October and November, order 2014, buy citing short-term and medium-term forecasts of inflation.

Officials estimate that in the next three months to December 2014, annual core inflation is thought to be within the range of 2-4 percent and over the next 12 months, it is expected to stabilize and converge to the Bank’s medium term target of 5 percent.

The central bank recently re-scheduled its decision of the Central Bank Rate (CBR) from a monthly to a bi-monthly basis, starting this financial year.

Deputy Bank of Uganda Governor, Louis Kasekende said annual headline inflation fell to 1.4 percent in September 2014 from 2.8 per cent in August 2014, mainly due to falling food prices.

Annual food and food crops inflation decelerated to minus 2.8 percent and minus 1.9 percent from minus 0.2 percent and 1.5 percent in August 2014, respectively.

Annual core inflation also declined to 2.0 per cent in September 2014 largely driven by the lagged impact of exchange rate appreciation experienced in 2013.

“Bank of Uganda’s (BoU) medium term macroeconomic forecasts remain largely unchanged since the last Monetary Policy Committee meeting held in August, 2014. Core inflation is forecast to rise over the medium-term because of an increase in domestic demand and the impact of the exchange rate depreciation that has taken place since February 2014,” added Kasekende.

He said upside risks to the medium term inflation forecast largely emanate from the possibility that domestic demand is likely to be stronger than forecast and both domestic and external factors especially global financial instability might adversely affect the exchange rate.

Real economic growth is projected to strengthen in 2014/15 to about 6 percent, supported by a fiscal stimulus, a rebound in agricultural production, faster private sector credit growth and increased foreign direct investment.

The risks to the growth forecast mainly emanate from supply-side factors and weaknesses in the external economic environment.

Government recently said the South Sudan war had a slight negative impact on the performance of the economy.

It remains unclear if the Ebola threat will cause any shocks.

Kasekende said given the BoU’s macroeconomic forecasts, “which indicate that both real growth and core inflation will be close to their targets over the medium term, the bank has decided to maintain a neutral monetary policy stance and leave the Central Bank Rate (CBR) unchanged at 11.0 percent in October and November 2014. The band on the CBR will be maintained at plus/minus two percentage points and the margin on the Rediscount rate at 3 percentage points on the CBR.”

Consequently, the Rediscount rate and the Bank rate for and the Bank rate for October and November 2014 will remain at 14.0 percent and 15.0 percent, respectively, said Kasekende.

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