Ministers have authorized their finance ministry counterpart Matia Kasaijja to enforce the amendment of the Bank of Uganda Act, 2000, in a bid to streamline its operations, in line with the Central Bank’s constitutional roles that include financial prudence.

During a meeting at State House, Entebbe, the ministers noted that all BoU objectives will be achieved through the amendments, in the process enhancing the central bank’s capacity to respond to the challenges arising from the ‘evolving financial market environment’.

‘Government will update the objectives and functions of BPU to reflect changing mandate and roles of the central bank and outline the monetary policy operations of the Central Bank (BOU)’ Minister Kasaija said in a cabinet meeting chaired by President Yoweri Museveni yesterday.

According to Kasaija, ‘government will ensure effective implementation of the requirements of the new national legislation, regional (EAC) commitments and strengthening all provisions in the current Act that are considered inadequate for the effective execution of BOU’s constitutional roles in the changing environment and clarify those that have presented interpretation challenges’.

The ministers said that after amending the BoU Act, Kasaija will issue draft instructions to the First Parliamentary Counsel to have the amendment Bill drafted and then tabled before Cabinet for deliberation.

Previously, the BoU has been accused of among other omissions, failing to regulate mobile money services that are offered by telecom companies.

The BoU also reportedly failed to block the 2010 purchase of Sukhoi fighter jets at a cost of about US$744 million.

The central bank has also been accused of failing to effectively supervise commercial banks, something that led to the closure of some banks like Crane Bank, Global Trust Bank and the National Bank of Commerce.

Similarly, the central bank also soiled its fingers when officials there reportedly spent UgShs125 million to buy 350 pens for its Golden Jubilee commemoration.

Recently, BoU Governor Prof. Emmanuel Tumusiime Mutebile made a number of changes, retiring the Director of Bank Supervision Justin Bagyenda, and also effecting changes of 30 senior staff.

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Cabinet has directed the State Minister for Finance, Planning and Economic Development in charge of General Duties David Bahati to seek parliamentary approval to borrow US$ 75.82 million from the International Fund for Agricultural Development (IFAD) to support the growing of palm oil in Uganda.

Chaired by President Yoweri Museveni, Bahati presented the proposal and noted that the said funds will support the National Oil Palm Project (NOPP) and contribute to sustainable poverty reduction in the project areas.

‘’Development objective of this project is to increase the domestic production of vegetable oil and it’s byproducts, raising rural incomes for smallholder producers and ensuring the supply of affordable vegetable oil products to Ugandan consumers and neighboring regional markets,’ Bahati said during the cabinet meeting held at State House, Entebbe, last evening.

According to minister, the project will cover ‘climatically suitable areas’ within a radius of approximately 30km, in which at least 3,000 hectares of small holder oil palm production can be assured. The beneficiary areas include Buvuma Island, Mayuge, Masaka and Rakai.

‘The project will consolidate the investments undertaken under vegetable oil project, phase two and support oil palm communities with activities complementary to oil palm investment,  but will not expand the area under oil palm production,’ Bahati said.

By May last year, Bank of Uganda State of the Economy report indicated that Uganda’s external and domestic debt had reached US$11.2 billion acquired to facilitate the construction of various government projects including the refurbishment of hospitals.

Meanwhile, at the Entebbe meeting, cabinet approved Busuubizi Core Primary Teachers’ College in Mityana District as the venue for this year’s International Women’s Day on March, 8 2018, under the theme ‘Empowerment of Rural Women and Girls’ Opportunities and Challenges’. President Museveni will preside over the ceremony.

Cabinet also, among other issues, discussed and approved the proposal to borrow up to US$19 million from the African Development Fund Financing to support the Kampala Sanitation Programme Phase One, aimed at improving the sewerage situation in Kampala city.

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