Africa-Press – Uganda. Absa has said the various policy initiatives in the 2023/24 budget will lead to increased economic activities, which will benefit both the business community and the banking sector.
Speaking on the sidelines of the NTV-Absa Post Budget breakfast dialogue in Kampala at the weekend, Mr Mumba Kalifungwa, the Absa managing director, said the policies in the next budget are geared towards fostering economic activities and spurring growth.
“We are very positive. Growth is above 5 percent, which is higher than the 3.6 percent for sub-Saharan Africa and inflation is coming down. All these are positive development, which is good for investors and citizens,” he said, noting that all the sectors of the economy have steadily recovered from the impact of Covid-19, which is very important.
However, he said there are still existing challenges within the region and the Russia-Ukraine conflict, which continues to impact global economies.
Ms Mpho Molopyane, an Absa economist, said whereas inflation had relaxed, there was no room yet for central banks to cut interest rates, noting that based on Absa’s research, Bank of Uganda is likely to keep the Central Bank Rate unchanged through 2023 to sustainably restore price stability.
Finance Ministry permanent secretary and secretary to Treasury Ramathan Ggoobi, said the outlook for the economy remains positive, supported by resilience demonstrated since 2020.
“We have started to tame budget incrementalism. Winners have started to gain by taking from losers rather than claiming incremental resources. We have started to make the budget redistributive. We are learning to promise in the plans what we can pay for in the budget. This is shown in steady reduction of fiscal deficit,” he said.
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