Central banks asked to stick to growth friendly policies
President Museveni buys a pair of shoes in Wandegeya recently. Some policies, experts say, clash with long term economic targets. FILE PHOTO
What you need to know:
- Clashed. Central bank policies have in some instance clashed with government policies, which puts the economy on a collision path.
Kampala.
Central bank governors drawn from 20 African countries have urged governments across the continent to improve economic management in order to achieve sustained growth.
This was during a two-day meeting held in Kampala last week.
Speaking at the meeting the Bank of Uganda deputy governor, Dr Louis Kasekende, urged Africa Union to be at the centre of having governments accountable, particularly when we [central bank governors] don’t agree with what we sign”.
“We have to ensure policy positions offer the appropriate space to allow the private sector to thrive,” he said.
Central bank policies have in some instances clashed with government programmes which puts the economy on a collision path.
For instance, the central bank has recently come out strongly against Buy Uganda Build Uganda (BUBU), a key policy agenda pushed by the Ministry of Trade.
Recently, Bank of Uganda governor Emmanuel Tumusiime Mutebeile said it was wrong for government to push through the BUBU policy, urging government to pursue its long term liberal agenda.
Mr Bwalya Ngandu, the deputy governor of Bank of Zambia, said African governments should consider adding value to their goods instead of exporting them in raw form.
“In Zambia, for instance, we export our cooper raw year on end, without regard to how much value addition and more prudent management of this resource can deliver monetary gain to our economy,” he said, adding African governments must prop up intra-Africa trade by drawing good policies.
Dr Anthony Mothae Maruping, a former commissioner of Economic Affairs at the African Union, said it is important to shake off duplication across various economic blocs such as EAC, SADC, Comesa and Ecowas, among others.
Bank of South Sudan deputy governor, Dier Tongbv Ngorchoi, put it to the meeting that inspite of having mineral resources economic stability has been disrupted by conflict blocking investments and trade.
Private sector actors were asked to be at the centre of policy formulations in light of their broadening interface with the public sector.
Dr Rose Ngugi, the executive director of the Kenya Institute of Public Policy and Analysis Strategic argued that models are critical because they bring us on board, along with synergies for mutual business and state benefit.
