Uganda Central Bank cuts key lending rate to 13 pct from 14pct – Africa Business Roundup

Uganda’s central bank cut its benchmark lending rate on Tuesday to 13 percent from 14 percent, saying there was room to support growth by easing.

However, the bank on its Twitter feed said they will not go the Kenyan way of capping interest rates.

“We shldnt copy all tht Kenya does. Increasing the depth wthin financial sector is our main objective. Caps will nt let us achieve this”. DG

— Bank of Uganda (@BOU_Official) October 18, 2016

The Kenyan Banking (Amendment) Law (2016) came into effect with the President’s assent on August 24th 2016. The law aims at regulating interest rates applicable to banks’ loans and deposits, which were set at the discretion of the banking players. According to Section 33B (1) of the new law, the maximum lending rate – chargeable for a credit facility – is capped at no more than 4%, the base rate set and published by Central Bank of Kenya. Read: 

The World Bank has raised concern over the Ugandan government’s low absorption rate of loans

Talking about the negotiations he had with the World Bank, finance minister Matia Kasaija said that the development partners are greatly concerned about the delayed utilization of money borrowed.

“Their biggest concern is low absorption for loans,” he said when asked. Read: 

Africa’s New Snappy Narrative

The Economist published a cover story titled “Africa Rising.” A Texas business school professor published a book called “Africa Rising.” And in 2011, The Wall Street Journal ran a series of articles about economic growth on the continent, and guess what that series was called?

“Africa Rising.” Read 

Uganda exports 11,502 tonnes of maize to Kenya and  Rwanda

Uganda has come to the rescue of Kenya and Rwanda, selling both countries more than 11,502 tonnes of maize worth $6.65 million over the past two months. This comes even as Zambia joins Tanzania in imposing a maize exports ban in order to build its reserves. Read