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Uganda News

  • Uganda News
  • Uganda Orders Two Week National Lockdown

    by Kevin Davids
    March 31, 2020

    March 31, 2020 By Kevin Davids

    Uganda’s President Yoweri Kaguta Museveni in his address to the nation last night announced a nationwide lockdown for the next two weeks as the country battles the covid19 pandemic.

    Uganda last week banned public transport and sealed its borders and urged the population to stay home, but stopped short of a full shutdown.

    Museveni said that from 10:00pm Monday private vehicles would also be banned, seeking to avoid give a more advanced warning that would see people flee the city, as has happened across the continent where many poor residents see better chances of survival in the countryside.

    “I would have given the public time to adjust but… a longer time would give people time to go to the villages and in so doing they would transfer the very sickness we’re trying to prevent. This freezing of movement will last for 14 days,” he said in a televised address.

    Museveni also ordered a 14-day nationwide curfew from 7:00pm.

    Shopping malls and businesses selling non-food items were ordered to close.

    Food market vendors who continue to trade are forbidden to return to their homes for the duration of the 14-day lockdown, while factories could stay open if remain on the premises for the duration of the shutdown.

    People are still allowed to move around on foot but not gather in groups of more than five at a time.

    Filed Under: Uganda News

  • Energy|
  • Uganda News
  • Uganda Signs Agreement To Build Four Solar And Wind Farms

    by Kevin Davids
    March 30, 2020

    March 30, 2020 By Kevin Davids

    The Ugandan government recently reached an agreement with Hussain bin Jassim Al-Nowais, head of Amea Power, an independent power producer (IPP) based in the United Arab Emirates. The IPP wants to build four solar and wind farms in two regions in Uganda.

    New renewable energy projects will be implemented in Uganda. It is the promise of a recently signed agreement between the chairman of Amea Power Hussain bin Jassim Al-Nowais and Ugandan head of state Yoweri Museveni. The agreement specifically covers the construction of four wind and solar farms in two regions of the country.

    In the West Nile region of northwestern Uganda, the Independent Power Producer (IPP) wants to build a 10 MWp solar photovoltaic power plant and a 10 MW wind farm. Amea Power wants to build the largest facility in the Karamoja region of northeastern Uganda. The UAE-based IPP wants to build a wind farm with a capacity of 120 MW. The solar power plant will be capable of supplying 80 MWp to the Ugandan electricity grid.

    Amea Power’s increase in installed capacity

    The chairman of Amea Power Hussain bin Jassim Al-Nowais said that implementation of his project in the West Nile region will begin before January 2021. These new projects will enable Amea Power to increase its installed capacity on the African continent. In recent months, the UAE-based company has obtained several concessions from African governments.

    The most recent is the construction of a 50 MWp photovoltaic solar power plant in Mali. The plant will be located in Tiakadougou-Dialakoro, a small town of 7,000 inhabitants, a short distance from Bamako. The solar power plant will supply electricity to the Koulikoro region. Also in West Africa, in Togo, Amea Power recently started construction of the Blitta photovoltaic solar power plant. The plant, which will be commissioned in two phases, will have a capacity of 50 MWp with an investment of 33.5 million euros.

    In Egypt, Amea Power has received authorisation from the military complex to supply700 MW of electricity from two installations. It is a 500 MW wind farm that will be built in Jabal Al-Zayt, in the town of Ras Ghareb in the Gulf of Suez. The project will be developed by Amunet Wind Power Company (AWPC), a subsidiary of Amea Power. The IPP will also build a 200 MWp solar farm in Kom Ombo (a locality in Upper Egypt) through its subsidiary Abyodos Solar Power Company (ASPC). Amea Power’s two projects in Egypt will require an overall investment of $750 million.

    Filed Under: Energy, Uganda News

  • Uganda News
  • Bank Of Uganda Injects $200M To Shield Shilling

    by Kevin Davids
    March 27, 2020

    March 27, 2020 By Kevin Davids

    The Central Bank has in less than a fortnight injected about $200m (Shs780b) as it seeks to shield the shilling from depreciation.

    The shilling has for about two weeks experienced a lot of volatility mainly because of speculation and panic buying resulting from the Covid-19 distress.

    The unit, which had been largely stable for over a year, started moving northwards from a range bound of Shs3,700 against the dollar.

    The intervention, according to people familiar with the market, could have starved of the rapid depreciation that has seen the unit sell at between Shs3,920 and Shs3,940 by close of yesterday.

    Mr Stephen Kaboyo, an expert in forex and the managing partner of Alpha Capital, yesterday told Daily Monitor that he estimates the Central Bank to have intervened with close to $200m in a bid to fend off the speculative attack on the shilling.

    However, in an earlier statement, Mr Emmanuel Tumusiime Mutebile, the Bank of Uganda governor, said they would intervene in the market as and when it is necessary.

    Mr Kaboyo also noted that earlier interventions could have delayed to stabilise the shilling given that the unit had experienced a lot of volatility in the first week of March.

    By yesterday, the unit had firmed at Shs3,920/Shs3,940 but experts have warned it might depreciate further.

    In the statement, Mr Mutebile expressed concern over the turn of events, noting that the evolving situation was still difficult to predict the extent and severity of the impact of COVID pandemic on the economy.

    However, he directed that all supervised financial institutions must continue to operate effectively through putting in place contingency plans that would guarantee the safety of customers and staff.

    He also noted that the Central Bank would intervene in the foreign exchange market to smoothen out excess volatility arising from the global financial markets.

    Fuel prices remain stable

    Meanwhile, pump prices across the country have remained stable in the face of depreciation of the shilling which usually influences their movements on the local market.

    Over time, local fuel prices have traditionally not responded to movements in the global oil market but only registered movements in response to the performance of the shilling against the dollar.

    However, with all that is happening across the globe one would expect the price of fuel to increase in accordance with market volatilities.

    A mini survey conducted by Daily Monitor yesterday indicated that fuel prices had remained stable with pump prices going for an average of Shs4,050 for petrol while diesel was selling at an average of Shs3,920 per litre by yesterday.

    Mr Peter Ocheing, an expert in the retail fuel business with market experience in Uganda, Kenya and Rwanda yesterday said: “Because of the international price of a barrel, which is falling, prices of fuel will remain stable at least for some weeks to come.”

    International oil prices have been volatile since February with a barrel dropping from $50 down to $10 with consumption and demand depressed due to lockdown across a number of countries.

    Filed Under: Uganda News

  • Uganda News
  • Ugandan Truckers Stuck At Busia Border

    by Kevin Davids
    March 26, 2020

    March 26, 2020 By Kevin Davids

    Several Kenya and Uganda-bound trucks and fuel tankers are stuck at the Busia-Kenya border after foreigners, especially Ugandan drivers, were stopped from crossing into Kenya.
 Most of Uganda’s fuel is transported through Kenya; so the closure of the border over coronavirus threatens to hurt exports and fuel supplies.

    Uganda is a landlocked country and depends on Kenya to bring in her imports.

    The blocking of trucks started on Monday morning.
Mr Sulaiman Sadique, a driver of a fuel tanker, said he had spent more than 12 hours at the border yet he was supposed to get fuel from Eldoret and deliver it to Kampala.

    “They are giving us hard conditions to release our fuel tankers to Kenyan drivers which is impossible,” he said.
Mr Sulaiman Kavuma, a truck driver who was taking milk to Kenya, on Tuesday said he arrived at the border on Monday.
“I arrived here on Monday but up to now we have been denied entry into Kenya,” he said, adding that instead, Kenya police told him to hand over his truck to a Kenyan driver to deliver the milk to Eldoret.

    Empty fuel tankers heading to Kenya to pick fuel, plus trucks carrying Uganda’s exports, especially sugarcanes, are among those stuck at the border.

    By Tuesday evening, the queue of trucks had stretched to more than three kilometres.

    Kenya and Uganda have since closed their borders to foreign travellers following directives from presidents Uhuru Kenyatta and Museveni, respectively.

    Mr Michael John Amodoi, a clearing agent on the Uganda side, said whereas Uganda had allowed Kenyan drivers to enter their country, it was different on their side.

    “Here, we have allowed drivers holding Kenyan national Identity cards to freely drive into Uganda, but in Kenya, it’s different,” he said.

    Mr Amodoi said Kenyan clearing agents had refused to hand over papers exiting fuel tankers and trucks to Uganda.

    “The Kenyans are insisting that unless they are allowed to cross into Uganda and clear their trucks and fuel tankers, they will not release any papers to Ugandan agents,” he said.
Mr Mophat Odiambo, a Kenyan clearing agent, said they will only allow trucks from Kenya if they are allowed to cross the border and clear on the Ugandan side.

    “Under the East African Community (EAC), we are allowed to work on either side of the border,” Mr Odiambo said.
On the Kenyan side, trucks and fuel tankers were equally held up after Kenyan clearing agents held on to their exit documents.

    Mr Carlos Wanyama, a clearing agent on the Ugandan side, thinks allowing the Kenyans to cross over and clear trucks and fuel tankers on the Ugandan side will flaunt the presidential directive.

    Mr Simon Esunget, a customs supervisor at the Busia border, told border agencies that after a lengthy meeting with Kenyan authorities they had allowed Kenyan clearing agents to cross the border and clear trucks on the Ugandan side.
“We have adjusted on the restrictions and allowed Kenyan and Ugandan agents to clear on both sides of the border,” Mr Esunget said.

    He, however, added that the clearing agents will have reflectors for identification and hoped this will allow trucks bringing supplies into Uganda to cross.

    Filed Under: Uganda News

  • Uganda News
  • Uganda Shilling Takes Beating

    by Kevin Davids
    March 25, 2020

    March 25, 2020 By Kevin Davids

    Uganda’s currency is on a rapid fall as demand for the dollar rises to unprecedented levels.

    By close of business yesterday, the Uganda shilling was trading in the regions of 3,900 and threatens to hit the 4,000 mark before the close of the week as Covid-19 takes a toll on economies globally.

    Explaining the rapid exchange trend, Mr Stephen Kaboyo, the lead partner at Alpha Capital, one of the country’s forex firms, yesterday said: “The spreads on the shilling were widening as investors continued to flee from riskier assets.”

    He further said the pressure on the shilling is expected to get worse before it gets better, testing record levels, as the mad scramble for the dollar is expected to increase further in line with the trend in the global markets.

    “Any efforts to defend the currency at this stage would be wasted because of the sentiment driven weakness of the shilling,” Kaboyo said.

    BoU’s piece meal intervention has done little to tame the sharp losses.

    Filed Under: Uganda News

  • Uganda News
  • Coronavirus: Uganda Has Lost $33M In Two Months

    by Kevin Davids
    March 24, 2020

    March 24, 2020 By Kevin Davids

    Uganda has lost more than Shs130 billion between February and March because offshore investors, who have been investing in Uganda securities stopped, Bank of Uganda (BoU) has said.

    Officials from Bank of Uganda say a number of investors exited Uganda’s economy, making investments in government securities decline.

    They also say the global value chains are being disrupted by factory shutdowns and delayed resumption of operations. Domestic manufacturers and traders, who rely on supplies from China and Europe, are facing challenges and are likely to shut down if the coronavirus pandemic persists.

    Mr Adam Mugume, the director for Research at BoU, told Daily Monitor that offshore investors have exited government securities market to seek safe investment havens.

    “For instance, between February 21 and March 13, offshore holding of government securities declined by Shs130 billion. This, plus negative sentiments, resulted in the shilling depreciation against the US dollar from Shs3,676.9 in February to Shs3,820 as of March 20, a depreciation rate of 3.9 per cent,” he said.

    This means that Ugandan currency value will continue to decline against the dollar if the coronavirus continues. Mr Mugume also said tourism, a major source of foreign exchange earnings, is shrinking as a result of declining demand and expanding travel restrictions.

    According to him, imports will definitely decline. He said currently about 71 per cent of imports come from countries severely affected by coronavirus and are under lockdown.

    “It might be impossible to get alternative sources in a short time. This suggests a severe supply disruption. Given that about 77.8 per cent of imports are raw materials and capital goods. This will gravely affect domestic production process,” he said.
    Mr Mugume said domestic capital, human as well as financial resources, are becoming underutilised as workers in factories and tourism are being laid off or furloughed.

    “Commodity prices are declining sharply. Whereas a decline in oil prices is beneficial to Uganda as an oil importer, the harm caused by decline in agricultural commodity prices, for instance coffee, outweighs the benefits of oil price decline,” he said.
    “A combination of the exchange rate deprecation and supply disruption will ultimately result in higher inflation in the coming months. The uncertainty that it is creating is also likely to affect domestic spending. Household spending is expected to grow at a slower pace amid moderate income growth. Private sector investment activity is projected to grow moderately but public infrastructure investments are to remain solid underpinned by ongoing projects,” he added.

    He also said ultimately credit conditions will tighten, economic growth will be weaker, and the diversion of government resources to fight the outbreak will reduce funds available for key development priorities.

    “In particular, private sector borrowing costs could rise, and financial conditions tighten, as commercial banks suspect consumers and firms may be unable to repay their loans on a timely basis. Higher borrowing costs will expose financial vulnerabilities leading to a heightened risk that debt cannot be rolled over. A reduction of credit will amplify the downturn arising from the supply and demand shocks,” Mr Mugume said.

    Central bank response plan
Mr Mugume said Uganda’s economy, being small and open, is sensitive and therefore the central bank stands ready to react to disorderly financial market movements.

    He said the BoU will ensure that financial institutions continue to operate effectively.

    “We shall provide exceptional liquidity assistance for a period of up to one year to financial institutions supervised by BoU that may require it and waive limitations on restructuring of credit facilities at financial institutions; engage Mobile Network Operators and commercial banks to further reduce fees on mobile money transactions and other digital payment charges in order to limit the use of cash and bank branch visits, increase daily transaction and wallet size limits for mobile money transactions,” he said.

    Bank of Uganda says they have already intervened in the foreign exchange market to smoothen volatility while letting the shilling adjust to external pressure.

    Mr Adam Mugume, the director for Research at BoU, said easing monetary policy could boost confidence and assist with the recovery of demand once the outbreak eases and travel restrictions are removed. “Therefore, as the Covid-19 effects begin to fade, BoU should be in position to ease monetary policy and provide liquidity in the event that the financial system is constrained.
    Second, the BoU could consider encouraging commercial banks, on a temporary and time-bound basis, extensions of loan maturities, especially for the sectors that will be hit hardest. These measures would lift confidence,” Mr Mugume said.

    Filed Under: Uganda News

  • Africa|
  • Uganda News
  • Uganda Slashes Growth Forecast As Coronavirus Wipes Out Tourism

    by Kevin Davids
    March 23, 2020

    March 23, 2020 By Kevin Davids

    Uganda sees economic growth slowing to 5.2% to 5.7% in 2019-20 from an earlier forecast of 6% depending on the severity of the impact coronavirus pandemic, the Finance Ministry said.

    While Uganda is yet to detect any cases of the virus, expansion in the 12 months through June will be hurt by global travel restrictions that will impact tourism, trade and industry, banking, remittances and foreign direct investment inflows, Finance Minister Matia Kasaija said in an emailed statement on Friday.

    Exports are expected to decline in the last four months of the financial year, with imports dropping 44% in the period, the minister said without providing details.

    “Supply chain disruptions are hampering trade, and this is expected to continue until the virus is contained at the global level,” he said. “Travel restrictions at the global level will also affect the flow of imports into the country leading to disruption in supply of inputs to the industry sector.”

    Revenue collection could register an additional shortfall of 82.4 billion shillings ($21.5 million) in the last four months of the year and 187.6 billion shillings in the coming financial year, assuming the virus doesn’t enter Africa’s biggest coffee exporter, or is quickly contained, according to the statement.

    The government already faces a financing gap of $100 million this fiscal year and $90 million in 2020-21 from revenue shortfalls and additional expenditure on health and fighting a locust invasion, the ministry said.

    Filed Under: Africa, Uganda News

  • Transportation|
  • Uganda News
  • Uganda Bans Flights From 12 Countries

    by Kevin Davids
    March 20, 2020

    March 20, 2020 By Kevin Davids

    The Civil Aviation Authority (CAA) Uganda has suspended travels for passengers coming from 12 countries as the country steps up the prevention measures against coronavirus.

    In a circular statement issued bearing the name of professor David M. Kakuba director-general Uganda Civil Aviation Authority, UCAA management said, following the outbreak of Coronavirus (COVID-19) and the declaration of a Public Health Emergency of International Concern (PHEIC) by the World Health Organisation (WHO), the government of Republic Uganda has given directives in addition to the Ministry of Health escalating passengers screening at all points of entry into Uganda.

    It is stated that the following procures shall therefore apply in respect to international flights operations at Entebbe International Airport:

    “Travel for all passengers coming into Uganda from any of the category one (1) countries listed in the attachments to this circular), with reported coronavirus (COVID-19) cases is hereby suspended,” the statement reads in part.

    Some of these countries in category one are China, Republic of Korea, Switzerland, Italy, Spain, France, Germany, United States of America, United Kingdom, Netherlands, and Norway.

    With regards to individuals, UCAA management said Ugandan citizens and other nationals with valid permits will be allowed to enter Uganda provided they proceed on institutional quarantine as designated by the government of Uganda, for fourteen days.
    “All costs associated with institutional quarantine shall be met by the passengers; the airline shall ensure that the passenger has a prior booking at any of the government designated quarantine areas,” the UCAA management said.

    UCAA management further stated that all international passengers arriving passengers shall be subjected to physical and temperature screening upon arriving at Entebbe International Airport. All airlines shall ensure that passengers fill and submit travel surveillance forms (TSF) on board the aircraft before disembarking.

    “The dully-filled forms shall be handed over to the Ministry of health personnel on arrival. All airlines are also required to provide advance passenger manifest of the relevant port health office at the airport, upon identifying case while the aircraft is in flight, inform the port health officer at the airport through Air Traffic Control about Aircraft identification departures aerodrome, estimated time of arrival and number of suspected case on board.”

    In a related move, UCAA management said disembarking crew or crew change arising from category one countries will be quarantined at the designated hotel; All the internal passengers shall dispose off their masks or and after use during travel at designated waste collection containers upon arrival, collection wear mask upon arrival, frontline staff shall and/or gloves as may be prescribed by the Ministry of Health, after disembarking of passengers for COVID -19 in accordance with the operator’s arrangements, all operations shall be required to submit spraying SOPS to Ministry of health Uganda for an acceptance.

    “The purpose of this circular is to bring the above requirements to the attention of all airlines and other stakeholder and to require immediate compliance,” UCAA said in the public notice issued on March 19, 2020.

    Filed Under: Transportation, Uganda News

  • Uganda News
  • Uganda Seeks Funding for Kampala-Jinja Expressway

    by Kevin Davids
    March 18, 2020

    March 18, 2020 By Kevin Davids

    The government of Uganda is seeking $267 million for the Kampala-Jinja expressway project. The money is to be obtained from the African Development Bank and the French Agency for Development.

    The loan request was presented by Mr. David Bahati, the State Minister for Planning. Both loans have a grace period of eight years and 25 years maturity period. However, the tentative interest for the African Development Bank is 2.25 percent, with a commitment fee of 0.25 percent or the non-disbursed amount.

    On the other hand, money from the French Development Agency will attract a tentative interest of 1.5 percent while failure to pay commitment fees will attract a 0.5 percent annual interest on non-disbursed amounts.

    The billion-dollar project forms part of the Northern trade corridor from Mombasa in Kenya through Kigali in Rwanda. This is a strategic corridor which serves as a trade link to the sea for landlocked countries of Uganda, Rwanda, Burundi, South Sudan as well as the eastern Democratic Republic of Congo.

    The initial project preparation commenced with a feasibility study in 2010 before it hit a snag due to unknown reasons.

    This project will be the first built in the country using a public-private partnership model. This implies that the contractor awarded the contract will design, develop, and operate the route for 30 years, earning profits by charging tolls before transferring the ownership to the state.

    Road transport is by far the most dominant mode of transportation in Uganda, carrying over 95% of passenger and freight traffic.

    Filed Under: Uganda News

  • Africa|
  • Uganda News
  • EU To Invest €646M In Uganda

    by Kevin Davids
    March 18, 2020

    March 18, 2020 By Kevin Davids

    The European Union (EU) is set to invest some Shs 2.7 trillion (about €646 million) in Uganda in the next five years.

    This was revealed by the European Union head of delegation to Uganda, Ambassador Attilio Pacific on Tuesday at the first Uganda-Europe Business Forum.

    Ambassador Pacifici told President Yoweri Museveni that the EU is to invest the finances over the next five years starting in the next financial year. He noted that the EU contributes greatly to the development of Uganda, and that a recent survey carried out by EU, indicates that as of 2017, there were 107 European investors or firms in Uganda with an investment value of Shs 1.99 trillion approximately (about €427 million).

    “They have created 32,524 jobs through investments in different areas. They have invested in agro-processing, services sector (hotels, lodges and others), the manufacturing sector and others…This is extremely important for us and this is the kind of partnership that we want. We were pushed by the president and it is important we emphasize the private sector and investment promotion,” Pacifici said.

    Pacific noted that there are several enablers that the EU needs to support and focus their investment on including skills and attitude development, access to finance, governance and corruption.

    Matia Kasaija, the Minister of Finance said that the new Uganda-Europe Business Forum will go a long way in fostering business between Uganda and Europe.

    “The EU is one of the biggest trade partners with Uganda. In 2018, the trade accounted for €989 million of which €473 million were exports. The volume of this trade can be tripled if the existing bottlenecks can be solved,” said Kasaija.

    He also applauded the European Union for being one of Uganda’s partners that have continued to provide grant financing in the areas of trade and investment.

    “Today, we are signing three grant financing agreements worth 85.9 million Euros that will support various projects and programs in Uganda. Budget support is 32 million euros, green economy 45 million euros and technical support is 8.9 million euros,” said Kasaija.

    Kasaija noted that trade and investment were the best ways to support any country. Ambassador Pacifici noted that in the two-day Forum, they focused mainly on how the European Union can invest and work with the private sector to spur development.

    He revealed that the Uganda-Europe Business Forum will from henceforth be carried out for the next five years and that the EU will be providing financial assistance to the private sector to enable it to happen.

    Filed Under: Africa, Uganda News

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    Uganda News

    Uganda Signs Agreement To Build Four Solar And Wind Farms

    The Ugandan government recently reached an agreement with Hussain bin Jassim Al-Nowais, head of Amea Power, an independent power producer (IPP) based in the United Arab Emirates. The IPP wants to build four solar and wind farms in two regions in Uganda. New renewable energy projects will be implemented in Uganda. It is the promise […]

    Bank Of Uganda Injects $200M To Shield Shilling

    The Central Bank has in less than a fortnight injected about $200m (Shs780b) as it seeks to shield the shilling from depreciation. The shilling has for about two weeks experienced a lot of volatility mainly because of speculation and panic buying resulting from the Covid-19 distress. The unit, which had been largely stable for over […]

    Ugandan Truckers Stuck At Busia Border

    Several Kenya and Uganda-bound trucks and fuel tankers are stuck at the Busia-Kenya border after foreigners, especially Ugandan drivers, were stopped from crossing into Kenya.
 Most of Uganda’s fuel is transported through Kenya; so the closure of the border over coronavirus threatens to hurt exports and fuel supplies. Uganda is a landlocked country and depends […]

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