The Minister of finance, Planning and Economic Development,Matia Kasaija has predicted a drop in economic growth and appealed to the business community to refocus their investments in filling the vacuum created by interruptions due to the coronavirus (Covid-19).
“It is about time that we woke up and produced goods and commodities for ourselves so that we can support the notion of building and buying Ugandan,” he said in his statement on the economic impact of Covid-19 on Uganda. The Minister presented the statement to Parliament last week.
Kasaija said that travel restrictions have at a global level affected imports into the country leading to the disruption in supply of inputs into the Industry sector.
“Overall, imports are expected to decline by 44 per cent in the last four months of the financial year; let us use this as a light-bulb moment to produce these imports locally,” Kasaija said.
In addition, Kasaija said that this would be the opportunity to implement the import substitution and export promotion strategy in order to reduce the dependence of inputs and final goods in such emergencies.
The Minister submitted that some other areas to be affected include the economic growth dropping from 6 to between 5.2 – 5.7 percent; hotels and the tourism sector; transport; trade; balance of payments and eventually the industry and service sectors.
The Minister also said that the government plans to seek support from the International Monetary Fund to ensure reserve buffers remain strong and to deal with the financing gaps
He said the government will seek budget supports of US$100 and US90 million for the financial years of 2019/20 and 2020/21 respectively.
Members were unhappy that the Minister did not provide actual solutions to the imminent threat of the pandemic.
Thomas Tayebwa (NRM, Ruhinda North) said that a number of businesses had suffered dramatically since the outbreak of the pandemic, citing a button making factory in Mitooma which cannot export its products anymore.
Tayebwa said that he hoped the Minister will come up with solutions for small and medium scale businesses who have been affected inform of financial support.
“People in downtown Kampala and other businesses that have been importing merchandise from Asia or exporting products are suffering because many of them have loans and rent to pay; what is government going to do?” he asked.
Kasese District Woman MP, Winfred Kiiza (FDC) said that she was disappointed with the fact that the Minister had not come up with a comprehensive plan and strategy to deal with worst case scenarios that may arise.
“We would like the Minister of Finance to return to Parliament with a more structured government response on this looming crisis that is more assuring,” she said.
Speaker, Rebecca Kadaga, commended the Minister on the statement but asked for a more structured response to address members’ concerns in a week. She also appointed a six member task force from Parliament to draft a motion on areas of concern and resolutions on the pandemic to the Minister.
The team includes MPs Justine Khainza (NRM, Bududa district), Elijah Okupa (FDC, Kasilo County), David Guma Gumisiriza (NRM, Ibanda County North), Joy Ongom (UPC, Lira District), Mohammad Nsereko (Ind., Kampala Central) and Winfred Kiiza(Kasese District).
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