Africa, which imports nearly 83% of the food it consumes, has a real chicken and egg problem. The continent is caught between pressure from imports in some countries and an inability to meet demand in others.
The Chinese firms constructing Karuma and Isimba hydropower plants are not buying steel from Ugandan manufacturers, according to Sikander Lalani, the chief executive officer of Uganda’s largest steel manufacturer, Roofings Group.
The most vocal opposition to an interest rate cap law has not come from commercial banks, but from their regulator, the Bank of Uganda. The bank’s core argument is that controlling interest rates would be moving away from economic liberalisation.
Bank of Uganda has not received any request from Crane Bank to approve a change in shareholding. Should such a request be received, the proposed shareholders will be vetted for “fit and proper” credentials.
To control core inflation, the Bank of Uganda takes a forward looking approach. This is because monetary policy operates with significant lags. A change in the interest rate today will not have its full impact on prices for at least one year ahead.
Bank of Uganda is not aware of Crane Bank’s planned merger, and has not approved a sale of the bank, according to Benedict Sekabira, the director commercial banking at Bank of Uganda.
Crane Bank Uganda was Thursday forced to deny rumours that it is up for sale, saying instead that is merging with a “strategic equity investor.” A report circulating on social media said the bank has sold 70% of its shares to South African investors.
Stanbic Bank Uganda, the country’s biggest bank by assets, is borrowing $55 million in Dubai for lending in Uganda. The bank says it reached an agreement with Emirates NBD Capital Limited and four other banks for the two-year loan facility.
Monetary unions potentially offer important benefits to economies which are closely integrated, but the problems experienced by some of the monetary unions already in existence around the world indicate that they also entail serious risks.
A statement released by the World Bank yesterday says it is withholding “new lending to Uganda effective August 22, 2016,” citing performance issues in its Uganda portfolio.