Uganda's economy expected to grow 5.5%

Uganda's economy is expected to grow by 5.5% in the year ending June 2018, driven by public infrastructure investment that is projected to boost GDP by 2.5 percentage points. Additionally, recent developments such as DFCU Bank's takeover of Crane Bank have raised questions about job security for employees in the banking sector. The acquisition, which saw 250 Crane Bank employees being let go, has sparked discussions surrounding compliance issues and employment standards. Catherine Namujjuzi, Risk & Compliance Manager at Crested Capital, shed light on the situation in a recent interview on CNBC Africa. Namujjuzi pointed out that DFCU Bank had indeed notified the Ministry of Labor and the Bank of Uganda about the staff reductions. She mentioned that the closure of 23 branches would naturally result in fewer job opportunities within the bank. She also highlighted the compliance and auditor fees as potential barriers for some former Crane Bank employees to continue their employment with DFCU Bank. Namujjuzi emphasized that it is likely that only individuals meeting DFCU Bank's standards will be retained, with a focus on employee costs and branch network optimization. Moreover, Namujjuzi discussed Uganda's GDP growth prospects, noting that the country's reliance on agriculture remains crucial despite anticipated contributions from the oil sector. She emphasized the need for government investments in infrastructure and support for farmers to leverage the potential benefits of the oil industry. Namujjuzi expressed optimism about Uganda's economic growth, citing improved weather conditions, increased export revenues from key sectors like coffee, and a potential boost from oil revenues. Looking ahead, challenges such as delays in oil production timelines and policy implementation remain areas of concern. However, Namujjuzi highlighted the importance of prioritizing agriculture and maintaining a favorable balance of payment surplus to sustain economic growth. Amid uncertainties surrounding the oil sector, she remains positive about Uganda's growth trajectory, provided that key sectors receive the necessary support and interventions. In conclusion, while Uganda's economy faces both opportunities and challenges, stakeholders are closely monitoring developments in sectors like banking and agriculture to drive sustainable growth and development in the country.