Uganda has shown a strong appetite for the debt however, it’s not facing difficulty in repaying, the State Minister for Finance, David Bahati has said.

Mr Bahati said this during a two days debt conference organised by government of Uganda in collaboration with the Netherlands and support from the United Nations Department for Economic and Social Affairs

Over the past decade, the government of Uganda has borrowed extensively to finance the country’s infrastructure demands. The debt-to-GDP position increased from 19.2 per cent in 2009 to 36.1 per cent in 2019. While this is a large increase, it represents the governments ambition for economic development.

As of last financial year, Uganda’s debt stood at Shs41 trillion (US $10 billion) in the fiscal year ending June 2018 as government borrowed to build roads and hydroelectric dams.

“We use our debt wisely. 59 per cent of our borrowing is still on concessional terms with multilateral institutions and development banks. Our engagement with bilateral and commercial partners is to finance specific projects that are of high returns and directed towards growth drivers and export promotion.” He said.

The strategy to allow us to continue meeting our debt obligations in the future is aiming to appropriately align the terms and conditions with the projects that we finance. Assets that are likely to generate high returns are more suitable to be financed on less-concessional terms, whereas, for social projects, we try to finance on concessional terms.

 “Some countries in the region just like Uganda are experiencing low debt distress levels and could comfortably bear more debt. However, Uganda is cognizant of the risks that our borrowing poses and we are taking action to mitigate these risks. Uganda does not aim to hit its debt limits, but rather take on the amount of debt that best supports our development objectives, all factors considered.” he said.

In the last decade, there has been a reduction in grants and concessional financing alongside a rise in non-concessional financing including commercial loans many of which are from unsolicited financiers. While the majority have attractive rates of interest, they typically come with additional charges which may significantly increase the true cost of the loan.

In order to adequately address the existing debt sustainability challenges, Bahati said it calls for not only tackling the borrowing conditions but also think through ways of; improvement of the terms of trade, improvement of the contribution of the exports sector, expanding the tax base, inclusion of agriculture and the informal sector in the tax system and harnessing the opportunities of the information and communication technology to improve collection of taxes.

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 Uganda National Bureau of Standards (UNBS) has started an inspection programme aimed at verifying the weights and sensitizing distributors on the quantity and safety requirements of Liquefied Petroleum Gas (LPG).

The verification exercise was prompted by growing concerns of underweight LPG being sold on the market. The exercise is also aimed at providing distributors with information on the requirements of standards, codes of practice and processes.

Uganda Standard US 971-4 Liquefied Petroleum Gases (LPG) — Part 4: Specification addresses commercial liquefied petroleum gases consisting of either propane or butane or mixtures thereof. There are many uses for liquefied petroleum gases. Important uses include domestic, commercial, and industrial fuels, as a carbon source material in metal treating operations, as refinery raw materials for synthesis of gasoline components, and as petrochemical raw materials.

LPG, commonly known as gas has become a vital source of alternative energy especially in urban centres and is used in homes for cooking, heating and water heating in the residential and commercial markets. In agriculture, LPG is used for crop and animal production, grass cutting and weed control, and powering farm equipment such as irrigation pump engines. Industry relies on LPG for heating, drying, process heat and powering industrial trucks.

While its usage has become popular, there are unethical, unauthorized, or illegal practices that have emerged putting consumers at risk and creating unfair competition. It is likely that under-filling of cylinders is being done deliberately to cheat consumers. Over-filling of cylinders and containers may also be done due to poorly calibrated filling equipment which is dangerous and increases the probability of an uncontrolled loss of product.

UNBS is committed to enforcing policies and regulations that create a safe, equitable, and competitive environment for industry participants, and to ensure the benefits of LPG are not denied to those who rely on LPG for basic life needs.

The verification exercise will initially be carried out in the areas of Entebbe, Kampala and Mukono.

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The Stanbic Bank Uganda has announced Anne Juuko as its new Chief Executive Officer (CEO) effective March 1, 2020.

Ms Anne who has been serving as the head of global markets, was announced by Board of Directors on Tuesday evening. She replaces Patrick Mweheire who has been appointed Regional Chief Executive, Standard Bank Group

She becomes the first female to take charge of Stanbic Bank and the youngest, according to the bank’s announcement.

“She has been a part of the Standard Bank Group for over eight years having joined as Head of Global Markets for Stanbic Bank Uganda and was later appointed Head of Corporate and Investment Banking at Standard Bank, Namibia,” the bank said in a statement.

 According to the bank, Anne has exhibited exemplary performance, winning the highly coveted accolades such as the Primary Dealer of the Year award for six consecutive years. She has also demonstrated exceptional leadership and stellar performance that will see her set to achieve Stanbic Bank Uganda’s strategy and vision.

Mweheire, on the other hand has been moved to g Kenya where he will be working as the Regional Chief Executive, East Africa, for Standard Bank Group. He will commence work on March 1, 2020.

According to Stanbic, Mweheire will now be responsible for Standard Bank Group’s growth strategy in East Africa which comprises of Kenya, Uganda, Tanzania, South Sudan and Ethiopia.

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