The state minister for Finance incharge of Investment and Privatization, Evelyn Anite, has said that funds injected in the Uganda Development Bank(UDB) will mainly finance investment in agriculture and import substitution next financial year.
She made the comments after President Museveni outlined a stimulus package intended to revamp the economy in the wake of the harm inflicted by the coronavirus pandemic.
Uganda could used approximately Shs 2.4 trillion on imports before the outbreak of coronavirus and most of the imports were oil, pharmaceutical products and capital goods.
Anite said since February imports had declined by 46%.
She said government is set to inject over Shs 1 trillion in Uganda Development Bank to support import substitution and the main focus will be put on agro based industries.
“This will add value to the agricultural products, so if you are in large scale agriculture. Here we import all the cereals to feed our children including adults. The person who was into the businesses of importing cereals will now have to add value to the cereals, “she explained.
She said the intention is to make sure that credit is cheaper and available to local investors.
In his state of the nation address, President Museveni said Shs 5 trillion will be re-aligned from the budget to cater for the most critical sectors.
Anite highlighted some of the sectors whose budgets will be cut.
“I am very sure part of that shs 5 trillion the president is talking about is the travel abroad and workshops because we are now doing it in a virtual form. So there are savings there, “she said.