An MTN advert in South Sudan

Due to the situation which has been attributed to an economic crisis caused by civil war, leading to the collapse of South Sudan’s currency and surging inflation, MTN South Sudan has cut 54 jobs and made changes to the way it sells airtime to help it survive. These changes include asking local traders to purchase airtime from MTN via bank transfers and sell to customers electronically, eliminating the need to import, and then distribute scratchcards.

“We are trying to manage what we have and make sure we continue operating,” the company’s chief executive officer, Philip Besiimire, said “We have now positioned ourselves to be lean and efficient until the situation changes.”

MTN South Sudan boasts of over eight million subscribers.

According to Oxfam, South Sudan is currently facing an acute humanitarian crisis and emergency levels of food insecurity due to an on-going conflict; more than 2.3 million people have been forced to flee their homes due to brutal war. Out of these, 1.6 million have been internally displaced in South Sudan and more than 777,000 have sought safety in neighbouring countries, mainly Ethiopia, Kenya, Sudan and Uganda. All this has led to a spiral into an economic free-fall.

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‘The BOU’s inflation forecasts based on the prevailing domestic and external economic conditions and outlook indicate that inflation will continue to rise over the course of FY 15/16’.

The post Central Bank Rate up by 1% making it 17% first appeared on Uganda Multimedia News & Information.

At a news conference in Kampala today, the Central Bank Governor, Prof. Emmanuel Tumusiime Mutebire said the current depreciation of the shilling reflects a global financial condition and a weak balance of payment with the current account deficit projected to widen to 10.3% of GDP in 2015/16 from 8.4% 2014/15. This is on account of higher non oil private sector imports and public infrastructure related imports as well as lower personal transfers and weak exports.

The Governor also warned that the bank will tighten monetary policy further should there be deterioration in inflation outlook.

Other statistics

• Inflation continued to rise in may 2015 with Annual core inflation edging up to 4.8% frm 4.6% in April 2015
• The rise in core inflation was driven in part by pass through effects of the exchange rate depreciation.
• Aggregate demand has improved though exports of goods and services remain depressed, which is a key drag on aggregate demand.
• 1/2 Real GDP growth is projected at 5.3% for 14/15 and 5.8% for 15/16 driven by higher public investment announced in the budget on a rebound
• Pressures on the exchange rate persisted since the beginning of 2014 reflecting global financial conditions as well as weak BOP position
• 1/2 Indicators of economic activity point to a relatively strong real gross GDP growth in the 4th quarter 14/15 supported by faster growth
• The band on the CBR will be maintained at +/-2% points and the margin on the rediscount rate at 3% points on the CBR.
• Annual headline inflation also rose in May 2015 to 4.9% from 3.6% in April 15.
• The rediscount rate and the bank rate increased to 16% and 17% respectively.

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The latest figures put the inflation rate at 4.9 percent up from 4.5 percent in October 2012.

The Bureau blames the increase on the hike in food prices registering an increase of 7.5 percent compared to 4.4 percent.

For energy and fuel utilities it rose to 13.8 percent from 12.8 percent in the month ending November.

This upward trend reverts Bank of Uganda’s efforts to reduce inflation.

The Uganda Bureau of Statistics Director for Macro Economics Chris Mukiza explains the implication of such a development.

The post UBOS registers reduction in inflation first appeared on Uganda Multimedia News & Information.

The governor bank of Uganda, Tumusiime Mutebile has announced that annual headline and core inflation fell sharply to 11.9% and 11.5% respectively in August this year from 14.3% and 15.4% in July. There was also a sharp fall in annual non food inflation from 19.1% in July to 16.0% in August which in previous months had been relatively sticky.

The governor says that since the beginning of 2012, monthly inflation rates have been very subdued with the headline and core inflation rates averaging 0.4% and 0.3% respectively which is an indication the disinflation process has remained solid.

Mutebile says that there are three main reasons for the decline in inflation. First, the food price stocks which inflicted the economy in 2011 have abated somewhat. Secondly, domestic demand pressures are weak, with the economy operating below potential output levels. Thirdly, the stability in the normal exchange rate since the start of the second quarter of 2011/12 has been translated into stable prices of trade of goods.

In the short term, he says, inflationary pressures are very likely to remain subdued. The Bank of Uganda now expects that annual core inflation will fall to single digits by the end of September 2012 and then gradually flatten out at around 5% in the first half of 2013.

Ends

The post Bank of Uganda publishes monetary statement first appeared on Uganda Multimedia News & Information.

UBOS today released its monthly market report indicating that the annual headline inflation rate for the year ending January 2012 dropped to 25.7% from 27.0% recorded for the year ended December 2011.

Releasing the report in Kampala, the director macro economics statistics, Dr. Mukiza Chris states that food inflation decreased to 27.3% in January 2012 from 34.6% in December 2011 with non food prices inflation rising to 24.2% in January 2012.

UBOS Sya that the reduction on fuel prices, as well prices of food stuffs contributed greatly to the drop inflation.

Dr. Mukiza says that Arua registered the highest annual headline inflation rate of 39.3% compared to40.7% in December followed by Mbale and Kampala standing at 26.1% from 24.7% in December due to high income.

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Besigye’s remarks comes after the police in Kampala told the media yesterday that the FDC president will continue to be under their surveillance until he promises to stop participating in anti–government protests.

 Besigye who was recently confined to his home in Kasangati, Wakiso district has told our informer who visited him this evening that he will fight on until Ugandans regain their freedom.

The FDC leader says that he is sure Ugandans are getting ready to liberate their country anytime so he will not be forced to denounce his pro people protests. Besigye says that the government thinks it can use the police to force him to denounce his crusade against despotic leadership inUganda.

By Walakira Nyanzi

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