Ratings agency Moody’s has cut Uganda’s long-term issuer bond rating by one notch to B2 from B1, but changed the outlook from ‘negative’ to ‘stable.’ Moody’s said the key driver of its downgrade is Uganda’s “sustained erosion of fiscal strength.”
The evidence is now in and the verdict is that Africa´s agriculture is powering economic transformation in the region. African agriculture – spurred on by public investment – has shown remarkable improvement compared to its precarious state 15 years ago.
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.
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.
Government used public sector banks, the Uganda Commercial Bank and the Cooperative Bank to provide loans to farmers at subsidized interest rates – which were often highly negative in real terms. Some of these lending schemes were financed from the Central bank.
Uganda’s flagship university, Makerere, has fallen five places in the latest ranking of the world’s top universities released today. Makerere is 762 in the 2016 rankings compiled by higher education research firm QS. It was 753 last year.