By; Jjunju Francis
Just a day after giving a bright economic growth in the state of the nation address by President Museven, the Uganda Shilling has experienced an upwards spiral, breaching the 3,800/= mark.
The Shilling against the dollar is trading in the range of 3,804/3,824 on the buy and sell sides, creating a new depreciation low for the local currency.
All forex bureaus within Kampala are quoting the Shilling-dollar exchange rate at over 3,800.
According to financial market analyst Stephen Kaboyo the 3,800-Shilling mark implies increase in cost of imported essentials like fuel which would in turn push up the cost of transportation and productive activities.
Economists have already backed president’s prediction for the country’s economic recovery expected from 3.9% to 5.8% in the next financial year and 7% by 2019-2020, based on economic boom in agriculture, stability in both national and regional politics According to Ramadan Goobi a renowned economists and a lecturer at Makererere University Business School.
They are However concerned about the country’s total debt burden that stood at 37.9 trillion shillings by the end of 2017 according to the Bank of Uganda figures which is higher than the Shs32 trillion budget for the 2018/19 Financial Year.
President Museveni revealed that his tough stand for the country to finance its development projects in 2005, like power and roads has helped to transform the country promising major investments in irrigation to support agriculture one of the economic growth propeller in country.
Museveni promised to revamp Air, Railway and Water transport as part of the avenues to support transit of both goods and services.
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