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Museveni summons cabinet over state of economy

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August 2, 2011
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President Yoweri Museveni has called a special cabinet meeting to discuss the current economic crisis in the country.

The meeting that will be held Thursday will discuss the increasing inflation rates and subsequent commodity prices as well as the shortage in sugar supply.

Information minister Karoro Okurut says they will discuss the problems faced by the economy as well as possible remedies.

Okurut says government is taking measures to address the sugar crisis with importation as the likely remedy.

She adds that they have already written to the Secretary General of the East African Community requesting for tax waivers to enable government import sugar into the country.

Uganda is suffering a serious shortage of sugar with a kilo gram now costing between 5000 and 6000 Shillings.

Meanwhile,

The Uganda Manufacturer’s Association is asking sugar manufacturing factories to

The Executive Director Uganda Manufacturers Association Kigozi Ssebagala says the current shortage has been caused by the long drought period, during which 70% of all sugar plantations dried.

The drought also affected the out growers limiting supply of sugar cane to factories.

Kigozi now says irrigation will provide the short and long lasting solution to the sugar crisis.

He says the factory prices haven’t been increased though production is low.

Many super markets have run out of sugar which is now being rationed, with customers not being allowed to buy more than 3 kilo grams.

Story by Moses Ndhaye and Patricia Osman

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