The final investment decision (FID) was expected to open the tap for money to start flowing, paving the way for projects like the US$3.5bn East Africa Crude Oil Pipeline.
Construction of the 1400 km heated oil export pipeline from Hoima in western Uganda to Tanzania’s port of Tanga on Indian Ocean has stalled.
In its latest economic outlook report for Uganda after the executive consultations on the country, the IMF says: “One shilling paid for debt service is one shilling less going to a school or a health clinic. The current ratio of interest payments to revenue is comparable to what countries with high risk or in debt distress typically face.”
The commercial manufacture and consumption of waragi packed in sachets was delegitimized in 2017 on the basis of health and environmental concerns. The same order invoked price control mechanisms to prohibit access to smaller quantities of alcohol to the population.