{UAH} ANOTHER MOU,THIS TIME FROM MARIA KIWANUKA TO CHRISTINE LAGARDE

UGANDA 

INTERNATIONAL MONETARY FUND 1 

 

Kampala, Uganda, 

November 28, 2013 

 

 

 

Ms. Christine Lagarde 

Managing Director 

International Monetary Fund 

Washington, DC 20431, USA 

 

 

 

Dear Ms. Lagarde: 

 

On behalf of the Government of Uganda, we would like to provide you with an update on the 

progress we have achieved under our economic program supported by the IMF's Policy Support 

Instrument (PSI). Economic growth has been stronger than expected, inflation is under control 

despite a significant food price shock, and the external current account improved allowing 

international reserves to meet the PSI end-June 2013 target. In light of these favorable 

developments, we observed all June 2013 quantitative assessment criteria under the program. 

Unfortunately, we missed the indicative targets on tax revenue and expenditure on poverty 

reduction by small margins and some structural commitments have suffered delays, but we have 

taken remedial action and remain committed to speeding up the implementation of the structural 

reform agenda. Therefore, we request completion of the first review under our PSI-supported 

program. 

Going forward, we will continue to conduct policies that maintain economic stability and support 

sustainable and inclusive growth by generating employment and reducing poverty levels. Monetary 

policy is designed to support the 5 percent medium-term core inflation target. A program of 

infrastructure investment in electricity and road projects to address the infrastructure gap is at the 

center of our growth and development strategy, and we will ensure that this program is consistent 

with debt sustainability and the absorption capacity of the economy. We are also advancing 

integration efforts with other Eastern African countries to boost trade, improve competiveness, and 

ultimately culminate in a monetary union. We have made progress on improving tax collection and 

enhancing public financial management and will continue to take steps to advance further. To assist 

us in carrying out this ambitious reform agenda, the government of Uganda wishes to continue to 

benefit from technical assistance from the IMF in areas included in the program. We also wish to 

request that the ceiling for non-concessional borrowing included in the PSI arrangement be raised 

from $1.5 to $2.2 billion to finance our infrastructure investment program, and that the December 

2013 quantitative assessment criteria and March 2014 indicative targets be modified in line with 

recent developments. UGANDA 

2 INTERNATIONAL MONETARY FUND 

The attached Memorandum of Economic and Financial Policies (MEFP) sets out details of the policies 

to be pursued in the next year, which Government believes will be sufficient to achieve the 

objectives of our PSI-supported program but, as always, we stand ready to take any further 

measures that may become appropriate for this purpose. 

We intend to work with the IMF and other development partners in the implementation of our 

program, and will consult with the Fund on the adoption of any such further measures, and in 

advance of revisions to the policies contained in the MEFP, in accordance with the Fund's policies on 

such consultation. We will provide the IMF with such information as the Fund requests in connection 

with our progress in implementing the policies and reaching the objectives of the program. We also 

consent to publication of the documents for the first review under the PSI. 

 

Sincerely yours 

 

 

 

/s/ /s/ 

Maria Kiwanuka Louis Kasekende 

Minister of Finance, Planning For Prof. E. Tumusiime Mutebile 

and Economic Development Governor 

 Bank of Uganda 

 

 

 

 

Attachments 

Memorandum of Economic and Financial Policies 

Technical Memorandum of Understanding

http://www.imf.org/External/NP/LOI/2013/UGA/112813.pdf

Viele GruBe

Robukui