Uganda's economy continues to perform below par thanks to persistent high lending rates, weak export performance and infrastructure gaps — rendering its seven per cent growth target elusive since 2012.
Lending rates have averaged more than 20 per cent over the past three years, amid high costs of funding experienced by banks, observers say.
Whereas Uganda’s economy grew by five per cent against a target of 5.8 per cent during 2014/15, down from 5.7 per cent against a target of 6.2 per cent in 2013/14, Bank of Uganda (BoU) data shows.
The World Bank now projects growth between five and 5.5 per cent during 2015/16 in light of depressed investment flows attributed to uncertainty over election campaigns. Read more. Source | The East African