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Uganda Gov’t To Release Report On Collapsing Economy

The Government of Uganda will on Tuesday next week release a report on the status of Uganda’s economy. This comes following media reports that the economy has collapsed given the number of companies that have gone under in past few years.

Crane Bank, the then 4th largest bank by assets in Uganda is the latest to fall victim of the harsh economic times.

The oldest private TV station, WBS also went under. Companies including Steel Rolling Mills and Threeways Shipping Company have since been placed under receivership after failing to honour their loan obligations from major banks.

In turn, banks have recorded huge Non-Performing Loans that threaten their survival. The poorly performing economy has also seen global brands including British Airways, AIG and AON among others quit the country.  

Uganda’s economic growth slowed down to 4.8% for the financial year 2015/16, lower than the projected growth of 5.8% at the beginning of the year.

In 2014/15, the economy had grown at 5.0%. According to World Bank, Uganda’s GDP growth has stagnated at an average of 5% in the last decade or so.

To update Ugandans on the status of the economy, Uganda’s Prime Minister, Ruhakana Rugunda  said government will table a report on the floor of Parliament next Tuesday.

He said reports that the economy is in shambles are false, noting that government will prove its case next week.

 Rugunda made the revelation  on Tuesday February 28, 2017, while responding to a question raised by Joseph Kasozi, Bukoto Mid-West MP during the Prime Minister’s question time during plenary session.

 Kasozi demanded to know why government has remained silent on briefing the country on the status of the economy that is worryingly falling. To prove his case, Kasozi gave examples of businesses that have collapsed in Uganda of late.

Responding to the matter, Rugunda down played the reports saying; “The economy of Uganda isn’t in shambles. The economy is actually strong. It is so strong that it has been resilient in spite of the new challenges. In fact on Tuesday, the Minister of Finance will table a report on the status of the economy on the floor of Parliament.”

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