President Yoweri Museveni has assured Ugandans that the country’s economy remains stable, citing at least 6 billion US dollars in reserves held by the Bank of Uganda.
Addressing the nation during the 64th Independence Day celebrations at State House Entebbe, President Museveni used humour to caution against spending the country’s foreign reserves on imported luxury beauty products, including perfumes and hair sourced from deceased people, saying such imports should not be prioritised at the expense of the economy.
The President said Uganda’s inflation rate of about 4 per cent remains manageable but urged Ugandans to embrace export promotion by investing in value addition to locally produced goods and reducing dependence on imports, which he said contribute to inflationary pressures.
He noted that although the shilling is trading at approximately 4,000 against the US dollar, Ugandans who export goods stand to earn more in local currency, while importers face higher costs when purchasing dollars to pay for goods from abroad.
President Museveni attributed the country’s current economic pressures to several factors, including conflicts in the Gulf region that have driven up oil prices, prolonged drought that has affected food production, and the Ebola outbreak, which he said had affected tourism.
He also pointed to competition for investment in government Treasury bonds and bills, saying some investors had shifted to the US market in search of higher returns, contributing to reduced foreign currency inflows into Uganda.
The President further cited changes in the international coffee market, noting that Brazil had regained market share, affecting Uganda’s coffee export earnings.
Museveni reiterated the need for Uganda to process its raw materials before exporting them, arguing that value addition would generate greater foreign exchange earnings and create more economic opportunities.
Citing gold mining in Kassanda District, he said Uganda loses potential revenue by exporting gold in its raw form rather than refining and processing it locally. He called for a shift towards domestic processing of raw materials to maximise the country’s earnings from exports.
Meanwhile, Vice President Jessica Alupo credited President Museveni’s leadership with supporting Uganda’s growth and development, noting that women continue to play a key role in the country’s development agenda under the 10-fold growth strategy.
The Independence Day celebrations were attended by selected leaders from religious institutions, government ministries and agencies, as well as foreign dignitaries.
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