Museveni reassures investors on economy
Posted by Stephen Wandera
on Monday, November 28 2011 at 00:00
President Museveni has said the current challenges slowing growth will soon end as Uganda nears the production of oil. Addressing investors during the Inventors Round Table forum in Kampala on Friday, President Museveni said the oil cash will be used to build more hydro power plants and revive the almost non functional railways network.
Uganda’s economic indicators, which include; high inflation, inadequate power supply, volatile foreign exchange market and the general scarcity of key commodities, among others are threatening to whip out gains that the country has made in the last two decades.
Recently the International Monetary Fund revised Uganda’s growth prospects down to 5.5 per cent as the economy faced a poor outlook.
Early in the year, the government faced serious criticism for its reluctance to admit the seriousness of the country’s economic woes. Standing at 30.5 per cent, Uganda has the highest inflation in East Africa compared to 17.6 per cent for Kenya and 16.9 per cent for Tanzania.
Uganda currently has about 15 per cent of the population connected to the national power grid compared to 8 per cent that was last recorded in about 25 years.
President Museveni said the government has launched a drive to build more hydro power plants to counter the country’s endemic power shortage that stands at over 200 MG.
Uganda currently has a supply of about 250 MW against a demand of over 440MW thus leading to massive power rationing with most parts of the country going for days without power supply.
President Museveni said interventions to correct the power sector are underway, which if coupled with proper legislation to attract more investors would help to sort out the economy.”
He said: “The government is doing all it can to see that mistakes done by political actors like the opposition to destabilise the economy do not happen again.”