Stanbic Bank
Stanbic Bank
19.7 C
Kampala
Stanbic Bank
Stanbic Bank
Home Blog Page 105

Finance Ministry engages stakeholders on FY 2026/27 budget strategy

By
Our Reporter
-
Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, chairing the meeting.

Top officials from the Finance ministry have met the Local Development Partners Group, members of the private sector, representatives of the civil society, and the academia to consult on the Budget Strategy for financial year [FY] 2026/2027.

The Permanent Secretary and Secretary to the Treasury [PSST], Ramathan Ggoobi, who chaired the meeting yesterday, said the successful formulation and implementation of the Budget Strategy for FY 2026/27 requires robust collaboration not only within government, but with all stakeholders.

“Your insights, evidence-based policy, and alignment with our strategic priorities are critical to ensuring that every shilling spent delivers meaningful impact,” said Ggoobi.

Ggoobi said the role of partners in shaping public policy, promoting accountability, and advancing inclusive development through research, community engagement, implementation support and advocacy are critical to ensuring that the budget reflects the aspirations and needs of all Ugandans.

The PSST said the overarching objective of full monetisation of the economy by transitioning 33 percent of the households in subsistence to the money economy remains a key priority of the government.

He said this will be undertaken by, unlocking the key binding constraints to sectoral growth in agro-industrialisation, tourism, minerals, and science, technology, and innovation so as to strengthen the resilience and productivity of our economy.

FY 2026/27 will be the second year of implementation of the Fourth National Development Plan [NDP IV], the last plan to deliver on Agenda 2030 of Sustainable Development Goals [SDGs] and first plan to implement the Ten-fold Growth Strategy.

Ggoobi also highlighted other priorities such as enhancing domestic revenue mobilisation through improved tax administration and broadening the tax base; fiscal consolidation interventions such as expenditure efficiency and fiscal discipline, value for money and results-based budgeting.

He said focus will also be in areas of: Strategic Public Investment in key enablers of the economy including infrastructure like; roads, railways, energy, water for irrigation, and human capital; strengthening public financial management systems, in line with the Public Finance Management Act Cap 171 and the Charter of Fiscal Responsibility, and deepening policy and goal consensus by promoting full integration and coherence across sectors and levels of government during planning, budgeting and implementation.

The Local Development Partners Group in a statement delivered by the United Nations Resident Coordinator, Leonard Zulu reaffirmed their partnership in sustaining and accelerating development outcomes in Uganda.

“We commit to supporting the Government of Uganda in its endeavors to use resources effectively and efficiently,” said the development partners in their joint statement. The development partners said they were ready to support Uganda in realising its domestic revenue mobilisation aspirations- including private sector investment and broadening the tax base.

Their proposed priorities for FY 2026/27 include: Human capital development, youth employment, inclusive, equitable and green growth, governance and accountability as well as debt sustainability and fiscal resilience. The private sector players in their statement called upon government to prioritise the ATMS and their entire value chains as well as the enablers.

The Executive Director of Civil Society Budget Advocacy Group [CSBAG], Julius Mukunda called for consolidation of gains, especially in e-governance services/automation, improving the capacity of votes to absorb funds, and enforcement of national service delivery standards.

Stories Continues after ad

Seven scout leaders arraigned over violent takeover of Kaazi National Scouts Centre

By
Simon Kabayo
-
The suspects in court.

The State House Anti-Corruption Unit (SH-ACU), working with the Criminal Investigations Directorate (CID) and the Office of the Director of Public Prosecutions (ODPP), on Thursday arraigned seven scout leaders at the Makindye Magistrate’s Court on charges arising from the alleged forcible takeover and destruction at the Kaazi–Busaabala National Camping and Scouts Centre.

Those charged are Buragahare Mujuni Patrick, Butumbwire Stephen, Mugisha John, Musoke Stephen Brian, Mununuzi Alex, Orwanga Michael Richard, and Anyango Francis. Prosecutors say the group operating under a splinter faction calling itself the Boys Scouts Association mobilised a crowd on June 24, 2025, broke into Uganda Scouts Association (USA) offices at Kaazi, and destroyed property including kitchens, latrines, a watchtower, water tanks and piping.

“We have arraigned seven scout leaders on charges of unlawful occupation, malicious damage, conspiracy, forcible detainer and forcible entry,” SH-ACU said in a statement posted on X.

According to court proceedings, the suspects face counts of unlawful occupation of land belonging to another, malicious damage to property, conspiracy to commit a felony, forcible detainer and forcible entry. The charge sheet cites Kyadondo Block 273, Plot 5.

Magistrate Rhona Tukundane granted each suspect Shs5 million cash bail with Shs10 million non-cash surety bonds and adjourned the case to September 8, 2025, for hearing. State prosecutor Henry Turyomujuni said court investigations are complete.

“Given the sensitivity of the land question in Uganda and Buganda, it would be foolhardy to sit back and hope the storm caused will subside on its own,” High Court Justice Bonny Isaac Teko wrote in a July 18 ruling that temporarily restrained ministerial directives touching the Kaazi title.

The 120-acre Kaazi campsite on the shores of Lake Victoria has hosted generations of Ugandan scouts for nearly nine decades. Historical records note it was initially given to the scout movement during Ssekabaka Daudi Chwa’s reign and has long been treated as the movement’s national camping home.

The dispute intensified in March 2025 when State Minister for Lands Sam Mayanja directed the cancellation of the Kabaka of Buganda’s title over the wider Kaazi area (Block 273, Plot 5), arguing it should revert to the estate of Daudi Chwa II and to the Uganda Scouts Association. The Buganda side challenged this in court, leading to the July 18 temporary injunction halting 16 directives pending a full hearing.

In his directive, Minister Mayanja asserted: “The land is the private Mailo belonging to the estate of the late His Highness Daudi Chwa II,” and ordered corrections to the land register.

Tensions at the site have since spilled into the open. In late July, scouts under the Uganda Scouts Association reported being blocked by heavily armed personnel from accessing the campsite for meetings tied to the National Scouts Camp scheduled for August 22–28, 2025. Leaders alleged ongoing grading, tree felling and demolition of structures at Kaazi despite court orders.

The scouts leadership also petitioned authorities—including the Ministry of Education and Sports, the Attorney General, NEMA, and SH-ACU—seeking intervention over what they call internal fissures exploited by encroachers and the alleged illegal occupation of sections of the campsite. Education ministry officials acknowledged the matter and advised formal escalation to defence and security organs overseeing the ground.

Thursday’s arraignment and bail set the stage for a substantive hearing in September even as the broader ownership and management questions remain before the High Court. Scouts leaders say they will pursue “all legal avenues” to reclaim the campsite and secure it for national activities, while SH-ACU has signalled continued investigations into alleged criminal actions at Kaazi.

“We will not allow individuals to take the law into their own hands and destroy national heritage property under the guise of leadership wrangles,” an SH-ACU official said.

Kaazi remains a national symbol for the scout movement and a flashpoint in Uganda’s land governance debates, pitting historical donations and leases, ministerial reviews, and kingdom claims against contemporary encroachment and commercial pressures. Whether the site can be secured for public youth work without further environmental and institutional damage now hinges on the courts—and on stakeholders respecting the orders already in place

Stories Continues after ad

Respected UPDF trainer Brig Gen Bonny Wolimbwa dies

By
Simon Kabayo
-
RIP: Brig. Gen. Bonny Wolimbwa.

The Uganda People’s Defence Forces (UPDF) is mourning the passing of Brigadier General Bonny Wolimbwa, a highly respected officer and seasoned military trainer who dedicated his life to shaping generations of soldiers.

Gen. Wolimbwa, who hailed from Sironko District, died on Thursday evening at Victoria Hospital in Kampala. Family and military sources confirmed that he succumbed to natural causes.

Until his death, Brig. Gen. Wolimbwa was serving under the Joint Staff Doctrine and Training Command (JS TRADOC), the UPDF arm responsible for harmonizing and professionalizing training across the force.

Tributes have since poured in from colleagues and former trainees, who described him as a disciplined, selfless, and dedicated mentor whose guidance extended beyond military drills to instilling values of loyalty, patriotism, and character.

“This is a sad moment for the UPDF family, for JS TRADOC, and for all of us who had the privilege of passing through his hands. He was a seasoned trainer whose contribution will never be forgotten,” one officer said.

Deputy Defence Spokesperson, Col. Deo Akiiki, also paid tribute to the late General, describing his passing as a heavy blow to the force:

“Very sad moment indeed for the UPDF family, Joint Staff Doctrine and Training (JS TRADOC), and the family of the fallen General, for the loss of Brig. Gen. Bonny Wolimbwa. A seasoned military trainer in whose hands many of us passed. Indeed life is finite and very short! Fare thee well,” Col. Akiiki said.

Born and raised in Mbale, now (Sironko District), Gen. Wolimbwa joined the forces in the early years of the National Resistance Army (NRA) and steadily rose through the ranks. His career spanned decades of service, during which he earned recognition as one of the most dependable and consistent trainers in the institution. At JS TRADOC, he was instrumental in building a professional cadre of soldiers who continue to serve across different units of the army.

Beyond his military career, Wolimbwa was admired for his humility and fatherly approach to mentorship, which made him not only a leader in uniform but also a guiding figure in the lives of many young officers.

Burial arrangements are underway, with the UPDF working closely with his family to honor his legacy. His death marks a huge loss, but his imprint on the institution remains immortalized in the thousands of soldiers he trained.

Stories Continues after ad

Brig Gen Charity Bainababo assumes office as UPDF director of women affairs

By
Our Reporter
-
Brig. Charity Bainababo receives documents from the outgoing Director of Women Affairs, Col Christine Nekesa.

Brig Gen Charity Bainababo, a seasoned officer and one of the most prominent female figures in the Uganda Peoples’ Defence Forces (UPDF) has officially assumed office as the Director of Women Affairs at the Ministry of Defence and Veteran Affairs (MODVA) headquarters in Mbuya.

Bainababo, who also serves as a member of Parliament representing the UPDF, is respected for her leadership within the force and her role as one of the aides to the First Son and Chief of Defence Forces (CDF) Gen Muhoozi Kainerugaba. Her appointment marks another milestone in her distinguished career and the UPDF’s commitment to gender mainstreaming.

The handover ceremony was presided over by the Joint Staff Human Resource Management, Maj Gen James Kinalwa, who underscored the significance of transfers and appointments in strengthening the institution.

“Human resource, like any other resource, must be discovered and tested in order to reveal its full potential,” he said, adding that such changes are vital for professional growth, innovation, and preventing stagnation.

In her remarks, Brig Gen Bainababo expressed gratitude for the appointment and dedicated the moment to women trailblazers in the UPDF.

“This moment is not mine alone. It belongs to the many courageous women who have gone before us, women who broke barriers, challenged stereotypes, and proved that excellence knows no gender,” she said.

She paid glowing tribute to pioneering officers including Lt Gen (Rtd) Proscovia Nalweyiso, Brig Gen (Rtd) Rebecca Mpagi, Brig Gen (Rtd) Agnes Musoke, Col Betty Musuya, and Maj (Rtd) Gertrude Njuba, acknowledging that their sacrifices laid the foundation for today’s progress.

Looking to the future, Bainababo pledged to promote mentorship, raise standards of service, and create an environment where women can excel in all spheres of military service.

“Our mission goes beyond defending the nation. We must mentor young officers, raise standards of service, and ensure every woman in uniform thrives on the battlefield, in command, and beyond,” she said.

Outgoing Director of Women Affairs, Col Christine Nekesa, highlighted the importance of gender equity and mainstreaming across units and formations. She noted that these initiatives are not about giving women special treatment, but about ensuring that all personnel perform to their full potential. Col Nekesa also reaffirmed the UPDF’s adherence to international humanitarian law, the Constitution of Uganda, the UPDF Act, and United Nations Security Council Resolution 1325, which advocates for gender equality and women’s participation in peace and security.

Stories Continues after ad

Eight Transformative Lessons for SME Success: Insights from TUPANGE Business Ne Equity Bank in Mbale

By
Our Reporter
-
Claver Serumaga, Executive Director of Commercial Banking at Equity Bank.

In the bustling city of Mbale, Uganda, the TUPANGE Business Ne Equity Bank event brought together entrepreneurs, dreamers, and innovators under the warm glow of a shared vision: to unlock the potential of small and medium enterprises (SMEs). Speaker after speaker – which included Claver Serumaga (Executive Director, Commercial – Equity Bank), Ms. Olivia Mugaba (Head of SME, Equity Bank), Mr. Saleh Naminya (Managing Director of Casa Uganda Safaris & Lodges), Mr. Odoki Richard (Lecturer at Uganda Martyrs University), and Mr. Natalisile James (MTA) – shared hard-earned wisdom told through experiences of resilience, collaboration, and innovation. The TUPANGE Business Ne Equity Bank event in Mbale focused on unlocking business growth through value chain financing, digital transformation, and strategic partnerships, with a particular emphasis on supporting small and medium enterprises (SMEs). These are the eight transformative lessons that lit a spark in the hearts of Mbale’s business community.

  1. Scaling Up Businesses: The speakers emphasized the importance of scaling businesses through financial and technical support. SMEs need to grow beyond stagnant operations by accessing tailored financial products and expertise to manage challenges like human resources, compliance with URA and NSSF regulations and operational efficiency. Scaling requires the right personnel and technical support to ensure sustainability.
  2. Value Chain Financing: The discussion highlighted the critical role of value chain financing in enabling SMEs to meet large contracts and sustain operations. By financing the entire supply chain—from input suppliers to distributors—businesses can reduce risks, manage cash flow, and seize opportunities. Examples included stock financing and credit lines accessible via mobile phones, allowing businesses to pay suppliers promptly and maintain trust.
  3. Digital Transformation and Accessibility: Speakers stressed the need for SMEs to adopt digital tools, such as point-of-sale machines and mobile banking, to cater to international customers and streamline operations. Digitalization enables businesses to track performance, make payments, and access markets efficiently. The speakers noted that modern businesses must move beyond outdated methods to remain competitive.
  4. Partnerships and Ecosystem Collaboration: The discussion underscored the importance of building partnerships within and across sectors (e.g., tourism, agriculture, and manufacturing). Collaborating with suppliers, distributors, and financial institutions creates a robust ecosystem that supports growth. For instance, tourism businesses benefit from reliable transport and quality produce, which require strong value chain linkages.
  5. Tax Compliance and Government Benefits: Compliance with tax regulations and formal registration were highlighted as essential for SMEs to access government incentives and exemptions. Various speakers referenced the need to understand tax policies and maintain proper accounting to benefit from opportunities in sectors like tourism, agriculture, and health.
  6. Knowledge and Financial Literacy: The event emphasized that knowledge is power for entrepreneurs. SMEs need to seek financial literacy training and consult experts to navigate policies, avoid common pitfalls like hiring unqualified relatives, and making informed decisions. Equity Bank Uganda was praised for offering not just financing but also business advisory services.
  7. Sustainability and Market Access: The discussion addressed Uganda’s high SME failure rate (53%) due to inadequate working capital and market access. Innovative financing solutions, such as invoice financing and tailored credit lines, were presented as ways to address these gaps. Speakers also highlighted the importance of accessing international markets, such as through trade fairs, to grow businesses.
  8. Case Studies and Practical Solutions: Real local examples included a business supported by Equity Bank Uganda that grew from a Shs20 million to a Shs100 million credit line through consistent performance and partnerships with anchor clients like Coca-Cola. Such success stories demonstrated how value chain financing and trust-based relationships can drive SME growth.

Overall, the event encouraged SMEs to embrace digital tools, comply with regulations, build strategic partnerships, and leverage tailored financial solutions to overcome growth barriers and thrive in a competitive environment. The engagements, enriched by various contributions from several speakers, inspired attendees to pursue sustainable growth through collaboration and innovation.

The next TUPANGE Business Ne Equity event takes place in Arua on Thursday, August 21, 2025.

Stories Continues after ad

Nakivubo Channel deal: When Presidential directives bypass environmental safeguards

By
Guest Writer
-
Mr Deus Mukalazi.

By Mukalazi Deus

Board Chair, UBUNTALISM GLOBAL, a member of the MUNGAANO INTIATIVE FOR CLIMATE JUSTICE (mubirudeus22@gmail.com)

A letter, ostensibly authored by the President of Uganda, surfaced on various social media platforms. In this letter, written on August 2nd, 2025, the President of Uganda issued a directive to the Prime Minister, Rt. Hon Nabbanja approves a “godly” proposal from businessman Hamis Kiggundu to redevelop and cover the Nakivubo Channel. The plan, submitted only a week earlier on July 25, allows him to finance the cleaning, covering, and strengthening of the drainage channel and, in return, build properties above it to recover his investment. At face value, this may appear visionary—combining drainage improvement with urban redevelopment. Yet the speed and manner in which this approval was granted exposes Uganda’s persistent governance challenges, particularly in balancing development ambitions with environmental protection, legal safeguards, and the rights of urban residents.

The Nakivubo Channel is not just a drainage ditch—it is one of Kampala’s most critical urban wetlands, channeling stormwater through the city into Lake Victoria. Any interference with it carries far-reaching consequences: increased risk of flooding, loss of biodiversity, contamination of water sources, and displacement of vulnerable communities. Uganda’s laws, including the National Environment Act, Cap. 153, and the Climate Change Act 2021, make it clear: no project of this magnitude should proceed without an Environmental and Social Impact Assessment (ESIA). This is not bureaucracy for its own sake—it is a safeguard to ensure that decisions consider long-term sustainability, community well-being, and compliance with both domestic and international obligations. By sidestepping this requirement, the directive risks setting a dangerous precedent—that politically connected individuals can override established environmental safeguards for private benefit.

Allowing private property to be constructed directly above a public drainage channel raises fundamental governance and equity questions. Legally, the Nakivubo Channel is a public asset—held in trust for the people of Uganda. Turning it into real estate effectively privatizes what should remain a common good. Kampala’s history already bears scars of poor drainage planning. From Bwaise to Kisenyi, ordinary Ugandans have borne the brunt of floods, waterborne diseases, and displacement—all while watching wetlands disappear under malls, arcades, and condominiums. If precedent is anything to go by, this redevelopment risks worsening urban flooding rather than alleviating it. Moreover, the justification that the developer will recover his money through property development dangerously commercializes public policy. The state’s primary obligation is to protect citizens, not to mortgage public utilities for private profit.

That a proposal dated July 25th could be approved by August 2nd raises serious red flags. Meaningful consultation with technocrats, city planners, environmentalists, and affected communities was impossible within such a short window. Uganda has ratified multiple international frameworks—such as the Paris Agreement and the Ramsar Convention—that obligate it to integrate climate and environmental safeguards in development projects. Approving construction over a major wetland channel without due process violates both these obligations and the spirit of the Constitution, which protects citizens’ right to a clean and healthy environment. This decision also undermines institutions such as the National Environment Management Authority (NEMA) and Kampala Capital City Authority (KCCA), whose mandates are to regulate, not rubber-stamp, projects of this magnitude. Of course, someone may argue that the President wrote to the head of government business and the technical teams are at liberty to provide a feasibility statement for such a project. The tone of the letter is clearly directing the Prime Minister to execute the proposal. The President has already approved and is not seeking for technical advice. Am sure if that was his intention he would have clearly stated so.

Uganda needs investment in urban infrastructure, but it must be done right. Redevelopment of Nakivubo Channel should indeed proceed—but only under conditions that require a full Environmental and Social Impact Assessment in compliance with the law and international standards, include broad stakeholder consultations, ensure transparency in financing arrangements, preserve wetlands and drainage systems as public goods, and align with climate resilience strategies recognizing that wetlands are natural buffers against the very flooding Kampala struggles with.

The President’s directive may have been well-intentioned, but it is dangerously premature. By approving construction above Nakivubo Channel without an ESIA, Uganda risks compounding the very problems the project claims to solve—urban flooding, environmental degradation, and social displacement. Uganda must resist the temptation of shortcuts in development. True modernization is not about covering wetlands with concrete; it is about respecting the rule of law, safeguarding the environment, and ensuring that all Ugandans—not just a few—benefit from urban transformation. The Nakivubo Channel controversy is more than a drainage issue. It is a test of whether Uganda chooses inclusive, sustainable development—or continues down the path where private deals outweigh public interest.

Stories Continues after ad

Afrexim Bank extends Shs1.1 trillion loan to Uganda for infrastructure and development projects

By
Our Reporter
-

The Government of Uganda has secured a major financial boost after successfully concluding a €270 million (approximately Shs1.1 trillion) 10-year loan facility with the African Export–Import Bank (Afrexim Bank) to finance a wide range of development and infrastructure projects under the 2024/25 national budget.

Announcing the loan agreement, Finance Minister Matia Kasaija emphasized its significance in bridging Uganda’s financing gaps in critical sectors.

“The facility is targeted towards financing of investments in infrastructure and human capital development in the budget, to support sustainable growth and socioeconomic transformation,” Kasaija said.

According to the Ministry of Finance, the funds will be channeled into government programs that directly drive value addition and long-term economic growth. These include agriculture modernization, support to the oil and gas sector, electricity generation and distribution, development of export processing zones and industrial parks, as well as expansion and maintenance of Uganda’s transport network, including roads, railways, and ports.

“This financing is an indication of the capacity of an African development financial institution like Afrexim Bank among others to support African strategies and development objectives,” Kasaija noted.

He added, “This is a clear demonstration of the Bank’s relevance to Uganda and the African continent, as well as an expression of its confidence in delivering solutions tailored to the requirements of its member countries.”

Beyond supporting Uganda’s national development priorities, Afrexim Bank is also deepening its presence in East Africa by establishing its regional headquarters in Kampala. The East Africa Regional Office, currently under construction along Yusuf Lule Road, will host the Africa Trade Centre (ATC), a facility designed to serve as a hub for trade-related financing activities across the region.

Kasaija described this as a strong endorsement of Uganda’s role as a strategic trade gateway in the region.

“These investments signify the Afrexim Bank’s strong confidence in the Government of Uganda and our shared vision of promoting trade and development in Africa,” he said.

The new facility will ease pressure on Uganda’s domestic resources at a time when the government is grappling with high infrastructure demands and limited fiscal space. The loan is expected to accelerate completion of key national projects, while also boosting industrialization and export competitiveness.

Officials further argue that by directing funds to high-return sectors such as energy, agriculture and manufacturing, Uganda stands to reduce its trade deficit and create more jobs for its young population.

Uganda has in recent years partnered with Afrexim Bank on several financing agreements aimed at stimulating economic transformation. The bank has emerged as one of the leading African institutions supporting large-scale infrastructure and trade financing on the continent, complementing other international lenders.

Stories Continues after ad

Uganda’s economy maintains stability as inflation eases and exports surge

By
Francisco Adongo
-
Agricultural products market.

Uganda’s economy demonstrated continued resilience in July 2025, supported by stable inflation, robust private sector activity, and prudent fiscal operations, according to the latest Monthly Economic Report from the Ministry of Finance, Planning, and Economic Development (MoFPED).

The report indicates that headline inflation eased slightly to 3.8 percent in July, down from 3.9 percent in June, primarily due to a decline in food crop prices. A strong harvest season led to price reductions for key staples, including cabbage, tomatoes, peas, and citrus fruits, which helped ease pressure on household spending. Core inflation also declined marginally to 4.1 percent, driven by falling costs in services such as transport and accommodation.

The Ministry attributed the drop to continued decreases in fuel prices and stable electricity tariffs. “Government reforms in the fuel importation regime, managed by the Uganda National Oil Company (UNOC), are playing a key role in maintaining cost stability,” the report noted.

Economic momentum picked up, with the Composite Index of Economic Activity (CIEA) increasing by 1.1 percent in June, a marked improvement from the 0.3 percent growth recorded in May. Private sector confidence remained strong, as reflected in the Purchasing Managers’ Index (PMI), which posted 53.6 – comfortably above the 50-point threshold indicating expansion. While this was a slight dip from June’s reading of 55.6, the Ministry explained it was “largely due to rising input costs.” Despite this, “employment and output grew across all sectors except manufacturing.” The Business Tendency Index (BTI) also painted a positive picture, standing at 58.3. The Ministry noted that this figure reflects “sustained optimism regarding future orders and employment across agriculture, services, construction, manufacturing, and retail.”

The Uganda Shilling strengthened for the fourth consecutive month, gaining 0.5 percent against the US Dollar and 0.6 percent against the Pound Sterling. “This appreciation is being driven by increased offshore investment, improved coffee export earnings, and confidence in Uganda’s macroeconomic policies,” the report highlighted. However, the Shilling slipped by 1.0 percent against the Euro during the same period.

The Central Bank Rate (CBR) remained unchanged at 9.75 percent for the tenth consecutive month, underscoring the Bank of Uganda’s commitment to balancing inflation management with economic growth. Commercial lending rates, however, edged higher. Shilling-denominated loans averaged 19.07 percent, up from 18.64 percent in May, while foreign currency lending rates rose to 8.78 percent. The report cited “increased risk perceptions in sectors such as telecommunications and real estate” as key factors behind the uptick.

Private sector credit continued its upward trajectory, growing by 7.5 percent year-on-year to Shs23.9 trillion. This expansion was underpinned by improved business sentiment and a GDP growth rate of 6.3 percent for the financial year 2024/25.

“Much of the lending in June was directed towards personal and household consumption, trade, and agriculture,” the Ministry noted.

The Government raised Shs2.69 trillion from domestic markets in July through the issuance of Treasury Bills and Bonds.

“Investor appetite remained strong, resulting in oversubscription of Treasury auctions,” the report stated.

Yields on the 91-day and 364-day bills fell to 11.6 percent and 15.3 percent, respectively. On the fiscal side, Uganda recorded a narrower-than-expected deficit of Shs1.46 trillion, attributed to better revenue performance and restrained expenditure. Total revenue and grants amounted to Shs2.54 trillion, surpassing projections, thanks to buoyant corporate tax collections and a Shs168 billion disbursement from the World Bank to support the INVEST project.

Merchandise exports surged by 64.3 percent year-on-year to $1.15 billion in June 2025. However, Uganda’s trade deficit widened to $ 272.9 million, an 11.4 percent increase from June 2024, as import volumes, particularly of oil, mineral products, and base metals, outpaced export growth. Coffee exports continued to shine, with volumes rising by nearly 28 percent month-on-month, offsetting a modest dip in global prices.

“The Middle East remained Uganda’s top export destination, with mineral and coffee shipments to the UAE driving volumes,” the Ministry stated.

Nonetheless, intra-regional trade performance was less favourable. Exports to the East African Community (EAC) declined by 4 percent in June, while imports from the region increased, leading to a $209.5 million trade deficit with EAC partners. The Ministry attributed this to “non-compliance with regional trade protocols and the emergence of new trade barriers.”

Uganda’s inflation trajectory in July mirrored that of Rwanda, which also saw a decline to 7.2 percent. Conversely, Kenya and Tanzania either experienced marginal increases or stable inflation rates. Uganda, Kenya, and Tanzania all registered modest currency gains against the US Dollar, in contrast to continued depreciation in Burundi and Rwanda.

MoFPED concluded that July’s economic indicators reflect “a cautiously optimistic outlook.” With inflation broadly under control, private sector dynamism, and strong fiscal discipline, Uganda appears well-positioned to navigate ongoing global and regional economic uncertainties. However, it warned of emerging risks: “Widening trade imbalances, particularly within the EAC bloc, and rising borrowing costs remain key vulnerabilities that will require close monitoring in the coming months.”

Stories Continues after ad

Uganda confirms migration cooperation agreement with United States

By
Simon Kabayo
-
Mr. Vincent Bagiire Waiswa, the Permanent Secretary at the Ministry of Foreign Affairs.

The Government of Uganda has confirmed the conclusion of an agreement with the United States of America as part of ongoing bilateral cooperation on migration management.

In a statement issued by Bagiire Vincent Waiswa, the Permanent Secretary at the Ministry of Foreign Affairs, the arrangement concerns third-country nationals who may not be granted asylum in the United States but are unable or unwilling to return to their countries of origin.

“As part of the bilateral cooperation between Uganda and the United States, an agreement for cooperation in the examination of protection requests was concluded,” Mr. Bagiire said.

He added, “The agreement is in respect of third-country nationals who may not be granted asylum in the United States but are reluctant to or may have concerns about returning to their countries of origin.”

He stressed that the arrangement is temporary and will be guided by clear conditions.

“This is a temporary arrangement with conditions including that individuals with criminal records and unaccompanied minors will not be accepted,” he explained.

Mr. Bagiire further clarified Uganda’s preference regarding the categories of individuals to be considered under the framework.

“Uganda also prefers that individuals from African countries shall be the ones transferred to Uganda,” he noted.

The Permanent Secretary added that both governments are still working out the technical and operational modalities before the agreement comes into effect.

“The two parties are working out the detailed modalities on how the agreement shall be implemented,” he said.

The clarification comes in response to growing public interest in Uganda’s cooperation with the United States on migration and asylum-related matters.

Stories Continues after ad

Rotary Club launches Little Hearts Project to combat childhood heart disease

By
Emmanuel Okello
-
Rotary International District 9213, Governor Geoffrey Kitakule unveils Little Hearts Project, a flagship health initiative aimed at the early detection and prevention of heart disease in children across Uganda.

Rotary International District 9213 has unveiled the Little Hearts Project, a flagship health initiative aimed at the early detection and prevention of heart disease in children across Uganda.

The project was officially launched by the Kampala South Rotary Club on Tuesday, with District Governor Geoffrey Kitakule pledging strong support from Rotarians and partners.

Speaking at the launch, Governor Kitakule emphasized the urgent need to act, noting that thousands of children are at risk of undiagnosed heart conditions.

“Yesterday, I had the honor of joining the Kampala South Rotary Club for the launch of the Little Hearts Project,” Kitakule said. “This initiative focuses on early diagnosis and prevention of heart disease in children, giving every child the chance to live and thrive.”

The cost of treatment remains one of the greatest challenges for affected families.

“A single heart surgery can cost up to $500,000, an impossible figure for most families,” Kitakule noted.

He added, “But with early detection through schools and regional centers, and the right equipment, many of these conditions can be prevented or managed before it’s too late.”

The initiative will be implemented in partnership with the Uganda Heart Institute, the Ministry of Health, medical professionals, Rotarians, and community leaders, creating a collaborative network to reach children at the community level.

“The launch highlighted the importance of partnerships. Together with our partners, we pledged our resources, time, and expertise to make this project a success,” Kitakule said.

At the event, stakeholders signed a commitment pledge symbolizing their dedication to turning words into action.

“The commitment signing was more than a ceremony it was a pledge of action,” Kitakule declared.

He noted, “As Rotarians, we are People of Action. We will stand with families, doctors, and communities to ensure that no child is left behind because of a preventable or treatable condition.”

The Little Hearts Project is expected to roll out screening programs in schools and regional health centers, provide training for medical personnel and equip facilities with modern diagnostic tools. Organizers say the ultimate goal is to ensure that every Ugandan child has access to lifesaving heart care.

Stories Continues after ad
1...104105106...2,402Page 105 of 2,402

© Eagle Online. All rights reserved.

About Us

Popular Category

Editor Picks