Well, as Bank of Uganda is struggling so much to deal with inflation and as many Ugandans especially my fellow peasants are asking themselves on what has happened to the value of our shilling and why most commodity prices have gone high yet even getting money these days is so hard?
Many questions from peasants that are not being given enough answers by Government officials even when President Yoweri Kaguta Museveni Tibuhaburwa has on several occasions laboured to explain or even illustrate to Ugandans, things have not really added up in the life of us the peasants.
Well, Let us try to break down what really happened and what is still yet to happen.
Apart from Uganda having a young population that is not productive yet wants to feed every day!
In the previous two or three financial years, Government of Uganda invested heavily into infrastructure development before COVID-19 and as a Country we had not anticipated that COVID-19 would come and affect most of our sectors like Mineral Devt Sector(Oil & Gas), Tourism etc.
Yet these sectors were to earn us more foreign currency which would be used to boost the economy further.
These sectors were greatly affected and thus we are now broke and we have to borrow more.
The other issue is global geopolitics, most Developed countries were hit real hard if not harder by COVID-19 yet they directly supported our economy with grants including non conditional ones, as well these International Development Partners used to give money to the Non Governmental Organisations (NGO) sector that used to employ many people including paying out cash to service providers…much of this money especially from USAID, UKAiD, EU, DANIDA…was cut, projects scaled down and others like Democratic Governance Facility (DGF) closed shop!
The war between Ukraine and Russia, has also greatly affected our exports to these Countries as well made commodity prices high with the rise in gas on the global market. This war involves the big shots! Who are equally struggling to reduce on gas, bread, Wheat prices in their Countries! United Kingdom, United States of America, France, Most European Union Countries among others are also struggling!
This Russia-Ukraine war does not affect only the two Countries fighting but also Uganda and her other trading partners. Infact some economic Analysts are now predicting a global economic recession or reset of sorts!
The Government of Uganda has to either keeping borrowing to deliver on her promise to her Citizens but it should as well look for ways to cut on the Adminstrative expenditure.
As well, Ugandans should spend sparingly and try as much as possible to adjust accordingly where possible.
There is no need to borrow money to feed entire village on a party or even on a burial, do not even sell land to throw a party or burry some one!
Limit expenditure to day to day priorities like health, food of the day, School fees…
We shall over come.
For God and my Country Uganda.