fbpx
Connect with us

Leader board

Local Business

Africa’s average rate of productivity growth falls to 1.7%

Published

on

Find out information about Coronavirus in Uganda. More here.

kampala city

Strong GDP growth in Africa has masked disappointing productivity, according to The Institute of Chartered Accountants in England and Wales (ICAEW’s) latest Economic Insight: Africa Quarter 2 report. Uganda in particular has seen a lower economic activity than anticipated during the past one year, primarily as a result of the sharp decline in commodity prices, which negatively affected export earnings.

Over the last 15 years, trade and investment have buffered the continent against the global financial crisis. However, according to the ICAEW, this has hidden low productivity figures – despite much greater potential for economic ‘catch up’.

According to the 2016-2017 Uganda national budget, the lower growth of Uganda’s economy arose from the drastic fall in international commodity prices of exports such as coffee, tea, minerals; the decline in private sector credit growth as a result of high interest rates, which have constrained domestic activity; and the strengthening of the US Dollar as a result of the recovery in the US economy which led to depreciation of Uganda’s shilling causing domestic inflation.

The ICAEW report notes that from the year 2000 to 2015, the average GDP growth across Africa was 4.8% per annum, a full 2.3 percentage points faster than the global average during the 1990s. This is only marginally slower than the ASEAN region, which grew by an average 5.6% per annum and around 0.2 percentage points faster than the Middle East region.

Michael Armstrong, Regional Director at ICAEW Middle East, Africa and South Asia said “Matching the performance of some other emerging market regions might, at face value, seem respectable enough. But the truth is that Africa is starting from a much lower level of economic development than these economies.”

African economies should be in a position to improve productivity in the agriculture sector, thanks to low cost labour and climate. However, so far progress has been disappointing. The ICAEW report notes that the East African region has especially been s back by inflation. The recent El Niño rains caused major fluctuations in food prices across the southern half of the continent, with greater than usual rainfall in Tanzania and Kenya. On the other hand, southern countries suffered from severe drought. Ethiopia has been particularly hard hit by adverse weather conditions, with the worst drought in around 30 years pushing food inflation to a peak of 16.2% year on year in October 2015 and easing only gradually in the first half of 2016.

“Poor agricultural output had an additional inflationary effect in some countries especially as agricultural goods constitute a large proportion of East African exports. This, combined with weaker exports, undermined currencies in the region, further fueling inflationary pressure,” added Armstrong. In Uganda for instance Tea prices have dropped from US Dollar cents 403.03 per Kg in July 2015 to US Dollar cents 237.99 per Kg in April 2016 while Copper from US$ 5,456.75 per tonne to US$ 4,872.74 per tonne.

The ICAEW report further states that in an attempt to limit the acceleration in price growth, central banks across the region adopted tighter monetary policies, with some countries such as Kenya and Uganda aggressively raising interest rates. This was also echoed by the 2016-17 Uganda’s national budget that stated that commercial bank lending rates have remained high largely due to the limited availability of long term capital, resulting in the mismatch between the commercial bank financing products and the nature of the investments being undertaken.

Subtracting this component, as well as the modest contributions from increasing labour participation and utilization, the continent is left with the improvement in output per worker, which has grown by just 1.7% per annum from 2000-2015 in non-oil sub-Saharan economies overall. This, however, is substantially slower than in low-income economies in other regions, and suggests capital is not being allocated to the most productive uses. Almost all GDP growth came from an increase in the working age population in many countries.

Tom Rogers, Associate Director, Macro Consulting at Oxford Economics, said: “Excluding oil intensive economies such as Angola, Nigeria, Equatorial Guinea and Mozambique, average output per worker in sub-Saharan Africa grew by just 1.7% per annum from 2000 to 2015, and in half of sub-Saharan economies by less than 1% per year. The fact is that Africa has tremendous economic potential, but realizing it will depend on being able to move up the value chain and deliver productivity improvements. For example, crop yields in largely agrarian economies are typically lower than in other major producers. Solving these problems would enable African producers to compete more effectively with farmers from other parts of the world, freeing up labour to move to manufacturing sectors.”

Loading...
(Visited 1 time, 1 visit today)
Continue Reading

Local Business

MTN Uganda reaches out to orphans in its Ramadan drive

Published

on

Find out information about Coronavirus in Uganda. More here.

MTN Uganda together with Salaam TV delivered some of the donations to Oasis Orphanage in Lweza, along Entebbe Road.

By Our Reporter

MTN Uganda together with Salaam TV delivered some of the donations to Oasis Orphanage in Lweza, along Entebbe Road. The home takes care of children that have been orphaned, abandoned in hospitals, police stations, thrown away by their parents or guardians among others. The home has been running for 10 years now and has taken care of over 500 children.

The orphanage is one of the beneficiaries of the Ramadhan food and alms donation worth 100million shillings that will be distributed to the Muslim community by MTN Uganda in partnership with Salaam TV during this fasting period.

This support underscores the long standing relationship that the telecom giant has had with the Muslim community spanning several years. This year however is a different year as the fasting season has fallen at a time when the whole world is grappling with the COVID 19 pandemic which has paralysed livelihoods of many. It gets even harder for the orphanages that depend on donations since the COVID19 pandemic has devastated many of their would-be donors.

The food items that were donated include sugar, rice, maize flour, cooking oil, beans, wheat flour and bar soap for hand washing.

The proprietors of the orphanage thanked MTN Uganda and Salaam TV for their generosity noting the orphanage operates because of generous and kind organizations like these.

While handing over the donation, Ian Mugambe the High Value Marketing Manager at MTN Uganda expressed the company’s delight upon reaching out to the children in the home.

“We are delighted to donate to a home that has taken care of abandoned children who would otherwise have nowhere to stay. We dearly appreciate your efforts and hope that our package will go a long way to help during this time”, Mugambe said.

On behalf of the area Resident District Commissioner, Sejjengo Sulaiman, the Mayor Ndejje Division, received the donation as per the guidelines of the Government of Uganda on behalf of the Orphanage.

He thanked MTN Uganda and Salaam Foundation and in turn handed over the donation as received to the orphanage.

Similar food items will be distributed to the Rafic Children’s home in Nansana and other vulnerable Muslim communities especially in the areas of Kampala, Wakiso and Mukono district with the guidance of the National task force against COVID19.

Loading...
(Visited 1 time, 1 visit today)
Continue Reading

CoronaVirus Uganda

MTN customers contribute Ugx 21.9million to Red Cross to fight COVID-19

Published

on

Find out information about Coronavirus in Uganda. More here.

By Our Reporter

Ugandans responded to a call by the Uganda Red Cross society and have contributed shs21.9million towards the society’s efforts in the fight against the COVID-19 pandemic.

The contributions were made through a MoMoPay merchant code that MTN Uganda launched in April as one of the telecom company’s interventions in the fight against the deadly virus. Through the merchant code *165*3*191919# MTN customers are in position to make donations of any amount toward the efforts to combat COVID-19.

Robert Kwesiga, the General Secretary Uganda Red Cross Society (URCS) said at the launch of the Merchant code that the donations would be used to procure and provide essential food assistance to the most vulnerable households whose livelihoods, from their informal jobs, have been adversely affected by the partial lockdown instituted in response to COVID19 pandemic in Uganda. This is to complement government efforts.

Speaking after receiving the money from MTN Uganda on behalf of Red Cross, Dr. Josephine Okwera, the Director Health and Social Services at URCS was elated that Ugandans had responded positively to the call, but said the struggle is still on and needs more generous Ugandans to come on board.

“We would really like to thank the community for responding to our call. This money will go a long way in making the lives of some people easier during this hard time. But as you are all aware, the lockdown has been extended so we call upon more Ugandans to come on board so we can rescue those that are worst hit due to the lockdown,” Okwera said.

MTN Uganda’s Senior Manager corporate affairs and Public Relations, Ms. Rhona Arinaitwe reiterated the company’s commitment to stand together with Ugandans by doing everything it can to reduce the impact that covid19 is having on their lives. She committed that, “MTN Uganda will continue to look at ways of supporting our communities and government, to ensure that together, we do everything feasible to get through this difficult time.”

Arinaitwe further noted that the merchant code *165*3*191919# will remain open to the public who wish to donate towards the fight against the COVID19 pandemic. The money collected from the merchant code henceforth will be channeled to the National COVID19 Task Force to support their efforts in alleviating the devastating effects of the pandemic.

MTN Uganda, like other organisations responded to governments call to support her efforts in the COVID19 fight. MTN zero rated mobile money sending transactions of any amount, contributed shs290million to Uganda Red Cross society to support the society’s efforts, and contributed another shs220million to National Water to deliver water to water stressed communities in and around Kampala.

The telecom company also handed over three brand new pickup trucks to the COVID 19 task force as a response to the President’s call for cars.

Loading...
(Visited 1 time, 1 visit today)
Continue Reading

Local Business

I am attacking the mobile devices’ industry in Africa to begin a massive economic war in multiple sectors for Africa’s glory – Charles N Lambert

Published

on

Find out information about Coronavirus in Uganda. More here.

By Reporter

Like President Museveni attacked Kabamba barracks to signal the end of the eruptive climate Uganda had witnessed 100 years prior, and began a 5 year bush war that ultimately led to peace and tranquillity, I am attacking the mobile devices’ industry in Africa($60 billion dollars capital flight channel) with disruptive commerce to begin a massive economic war in multiple sectors for Africa’s glory.

How long this war will last, I don’t know but seeing that hundreds of billions must be ploughed back, I have no idea but one thing I am confident of is that we will win this war and scare economic invaders from Africa for the next millennium.

Charles N Lambert

Leader, Africa’s first economic war.

BWS.

Loading...
(Visited 1 time, 1 visit today)
Continue Reading

Local Business

Cash Chat upgraded, to enable users earn from the platform

Published

on

Find out information about Coronavirus in Uganda. More here.

Asher Namanya, the founder and developer of Cash Chat App

Asher Namanya, the founder and developer of Cash Chat

By Our Reporter

Cash Chat, an online platform facilitating social and financial transactions, has been updated and upgraded with the latest high value features for better user experience.

Through the Cash Chat app, users can transfer money, advertise products & services, chat with people, upload statuses and make voice and video calls.

Asher Namanya, founder of Cash Chat in a notice to subscribers of the mobile app advised them to download the upgraded app from Google Play Store.

The latest features added on the app include posting of videos on status, posting advert videos, swiping to reply messages, seeing advert views, sending out group invites and links among other notable features.

Namanya said the new updates will allow agents to advertise on behalf of companies; also, users will earn from the adverts.

“Business is now, more than ever, going online and we want to spearhead this transition,” he said.

Interested individuals and companies can register to become Cash Chat advertising agents on their website (www.cashchatapp.com). Namanya revealed that advertising agents will receive online training on how to do business on the mobile application.

“We are going to give our advertising agents and members of the public the right skills to do business on our platform. We believe that the future of developing countries like Uganda is in investing in innovations like Cash Chat,” he added.

Loading...
(Visited 1 time, 1 visit today)
Continue Reading
Loading...

Facebook

WHAT YOU MISSED

%d bloggers like this: