Industry and Trade

Uganda anticipates 5 percent economy growth – IMF

On the month of October, the Bank of Uganda sliced its policy rate by a 50 basis points that drastically brought it to a 9.5 percent rate.

Kenya, November 13, 2017 – According to the International Monetary Fund (IMF), the international organization has seen East Africa’s country Uganda having a robust economy growth of 5 percent in the 2017/18 fiscal year. This is good news for Uganda that will add a percent of hope in its economy from its hitherto records. The economy will be indebted to the favorable weather that has boosted the agricultural sector and improved the production of produce.

Coffee is a highly coveted commodity that the Uganda has majorly focused on and is in competition with the second best exporter of the commodity, Ethiopia. Uganda as well cultivates a plethora of agricultural produce as cocoa, tobacco and tea that are quite competitive in the global market.

On a statement that was released recently by the IMF, the organization firmly believes the rains will undoubtedly lift the economy of the country due to conditions favorable to the agricultural commodities.

However, the growth in the private sector has remained slow. IMF has gone on to praise the central bank after it lengthened the lifeline of policy easing cycle. This will be of help giving businesses and entrepreneurs time to sort out terms and conditions, rules and regulations. The economy is growing and increasingly drawing investors on board.

This was the first time the financial institution had brought down its rate to a one digit level from the important 10 percent. The 10 percent had been operational for the country since the inflation that targeted the monetary policy was introduced in 2011.

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