Browsing: Uganda

Uganda food inflation declines in spite of a failed harvest from the 2019 first crop season.

Uganda has maintained a relatively low food inflation rate at 1.9 per cent from the 2018 bumper harvest.
Since June 2018, the country has experienced a great harvest of maize, beans, sorghum rice; cassava, sweet potatoes and Irish potatoes that which has kept the prices of all staple foods low meaning households were able to meet their food needs.

Opolot Okaasai, a crop resource expert and former director at the Ministry of Agriculture Animal Industry and Fisheries said that 2018 was good since the first rains came on time across the country and floods came after the crops had been harvested.

This year however started on a difficult note for the country. Although the first quarter was affected by the two tropical cyclones that hit Mozambique and disrupted the country’s rain pattern despite it …

South Africa’s Foreign Direct Investment (FDI) in Uganda increased to 1.3 billion U.S. dollars in 2018 from 803 million dollars in 2017.

While opening the South Africa-Uganda Business Summit, Uganda’s Prime Minister Ruhakana Rugunda said South Africa FDI in has more than doubled from 626 million dollars in 2016.

Mr Rugunda said that over 70 South African companies are registered and running top businesses in Uganda and are estimated to have total assets of over $3Billion.

He added that the rise of inflows in Uganda has helped it grow its FDI stock to $13.3 billion in 2018 equivalent to about 48% of the country’s GDP.

In 2017, Uganda export totalled to US$2.79 billion while its import totalled to US$5.84Billion resulting in a negative trade balance of US$.3.05 billion. That year Uganda’s GDP was US$26 Billion while its GDP per capita was US$1.86 thousand.

Also Read: Africa’s FDI still on the

Increased competition between Simba cement and Kampala cement is driving prices down in Uganda.

A 50-kilogramme bag now retails at an average price of $7.5 from $10.8 with some brands charging even lower.
Before the entry of Simba cement and Kampala cement, Hima Cement and Tororo Cement have been the dominant market players in Uganda.

The drop in prices has been long coming following last year’s drastic measures by Uganda’s Ministry of Trade, Industry and Co-operatives to fast track licensing of new cement manufacturers. The removal of 10 per cent import duty on clinker has also lowered production costs.

Some cement manufacturers rely on clinker as a raw material in their production while Tororo and Hima rely on pozzolana as their raw material which is mined in Kasese and Tororo.

The government of Uganda had threatened to allow imported cement to come into the country on a special …

The Bank of Uganda reduced its interest rates for the first time since February 2018 in a bid to support economic growth.

The monetary policy committee agreed to reduce the central bank rate by 1% to 9%. The rediscount rate and the bank rate were also adjusted by a similar amount to 13% and 14%, respectively.

This rate cut is expected to be of relief to businesses facing cash difficulties in funding operations or expansion. Businesses that are struggling with low sales and reduced household spending, can also get a boost from the rate that is cut through consumer lending.

“This policy move is expected to boost already high liquidity levels in the banking sector and this will eventually accelerate credit growth and real economic activity,” said Adam Mugume, Executive Director for Research at Bank of Uganda (BoU).

Also Read: Bank of Uganda warns of rising cost of debt repayment

Increased gold export in recent months has strengthened the Ugandan shilling, helping ease inflationary pressure from imported goods.

The Uganda Bureau of Statistics reported that the annual headline inflation had slowed to 1.9 per cent in the month of September compared to 2.1 per cent registered in August, which is largely attributable to a stronger shilling.

Data from the Bank of Uganda shows that the shilling which was trading at 3,765.6 against the dollar in May, has remained stable at just over the 3,600 units for the months of August and September.

Since May, Uganda’s earnings from gold exports have been increasing from $78.7 million to $97.3 in July.

Dr Fred Muhumuza, a development economist, says the shilling which had been destined to reach the 4,000 units to the dollar mark, is now gaining strength thanks to Uganda’s gold exports.

Also Read: Tanzania state gold-miner quest for the local market

The African Export-Import Bank (Afreximbank) has signed a deal with Uganda to open its East African branch in Kampala.

Uganda’s President Yoweri Museveni and Benedict Oramah, Afrexim bank president signed the deal which will see Uganda as its fifth branch.

Afrexim bank which is a pan-continent investment lender has other branches in Abuja, Cairo, Abidjan and Harare.

Prof Oramah said that the opening of an East Africa branch would deepen the bank’s involvement with the region’s institutions.

The Kampala branch will start operating end of October 2019 and will serve 11 countries: Uganda, Sudan, Kenya, Tanzania, Eritrea, Djibouti, Ethiopia, South Sudan, Rwanda, Burundi and Comoros.

Kudakwashe Matereke Afrexim East Africa chief operating officer said it is in talks with Uganda’s  National Social Security Fund (NSSF) to have it join others in the region like Rwanda’s social board to become one of the lender’s institutional investors.

Also Read: New bank

National air service Uganda Airlines is to add three more regional flights to its schedule this month increasing its destination to seven.

Jenifer Bamuturaki the airlines’ commercial director, said the ai shuttle will make its debut flight to Bujumbura, Burundi at a promotional fee of $255 on September 30th and on 11th October it will fly to Kilimanjaro, Tanzania and to Mombasa, Kenya at a cost of $165 and $312 respectively.

These flights will be an addition to the initial routes of Mogadishu, Nairobi, Juba and Dar es salaam.

Ms Bamuturaki said the air carrier is planning to increase the frequency on some of the routes that have a growing number of passengers. The increase in flights will see three daily flights to Nairobi from the initial two flights and two flights to Juba from the initial one flight, which she said will depend on the acquisition of more …

Bowmans Law firm, a leading pan African legal entity specializing in business deals, merger and acquisitions (M&A) is set to launch its base in Ethiopia and Mauritius at the beginning of October 2019. The move is seen as an expansion of the company to two countries where FDIs have remained high coupled with financial growth.

Bowmans is opening a fully-fledged office in Mauritius, having joined forces with FirmWise, a local firm that specialises in corporate law, mergers and acquisitions, banking and finance, investment funds, tax, compliance and private equity.

Robert Legh, chairman, and senior partner, says ‘This move, which is effective from 1 October 2019, is an investment in the ambitions and success of our clients across Africa. Mauritius and Ethiopia are key jurisdictions for many of our clients and our presence on the ground there will help us to better support them.’

The law firm already has a presence …

Uganda Revenue Authority (URA) is set to auction hundreds of imported cars destined for Uganda, which are now abandoned in warehouses in Mombasa.

According to the East Africa Community Custom Management act 2004, the cars have exceeded their permitted clearance and warehousing period. Which according to the act, the cars can stay in the warehouse within 30 days from the date the auction bid was placed and after failing to pay all the requisite fees, taxes, fines, penalties and charges that will have accrued.

A number of the cars have already been auctioned as the bidding process ended early this month.

A URA official in Mombasa Charles Busomba said that the auction is ongoing and some vehicles will be actioned to decongest the warehouses and to avoid accruing more storage charges.

“Due process was followed and we placed public notices in different media and in our government website to attract …

Ugandan grown cocoa bean is producing one of kind chocolate that is about to make an inroad into USA providing the world with authentic African flavors through South African based chocolate maker De Villiers.

Classed among the finest cocoa beans in the world, the crops grown in the tropical, rainy Bundibugyo district of Western Uganda produce a cocoa bean rich in the complexity of flavors. De Villiers Chocolate uses only these UTZ Certified beans because supporting sustainable cocoa farming is vitally important to Africa’s future.

With their positioning as the first African-originated UTZ Certified chocolate brand, De Villiers are hoping to bring their distinctive new products and intriguing new flavors to the USA, with a diverse range designed to provide an indulgent exploration of sensory delights with unique African flavor profiles.

The new range created for the USA market underlines their commitment to quality and authenticity throughout their chocolate-making …