Kampala traders have called for a strict law compelling foreign investors to have local partners in their businesses to reduce on repatriation that causes a strain on the local shillings.
It should be noted that, most foreign investors repatriate their profits and convert their money in to United States Dollars, which increases the currency’s demand.
According to Kampala City Traders’ Association (KACITA), the high dollar demand can be solved if foreign investors are forced to sell shares to Ugandans who would reinvest their profits locally.
KACITA chairperson Evarest Kayondo says donors are blackmailing the Bank of Uganda from lowering the Central Bank Rate with threats of withdrawing funding.
Today, US dollar goes for 2,509 buying and 2,518 selling. This is higher than two months ago when the dollar hovered around the 2,300 mark. This has increased fuel prices, and in turn led to increased market prices for both food stuffs and other products.
At Nakasero produce market in Central Kampala, Four tomatoes go for 1000shs, a bunch of matooke costs between 35,000sh and 50,000shs. A kilo of rice has also increased from 2500sh in March to 4000shs. A kilogram of groundnuts has risen from 4000shs to 5000sh.
