African News

Ugandan President Justifies Opposition to Subsidies

BBC- In response to a dramatic increase in the cost of living, Ugandan President Yoweri Museveni has defended his government’s decision not to provide subsidies or lower taxes.

On Wednesday night, he delivered a televised message to the nation amid rising fuel costs and food shortages in some areas of the nation.

Subsidies, according to Mr. Museveni, would diminish the nation’s foreign reserves and would mislead people into believing there was plenty.

He predicted that tax cuts would also cause infrastructure investments to stop.

Additionally, Mr. Museveni cautioned that even after the Russia-Ukraine war, fuel prices would probably continue to be high.

He advised starting the transition from gasoline-powered vehicles to electric vehicles and rail transportation.

In light of the high price of wheat, Mr. Museveni urged Ugandans to investigate a variety of alternative foods available, such as cassava, plantains, and millet.

His position stands in stark contrast to the actions that other nations in the region have adopted.

Tanzania’s government issued a $43 million (£36 million) fuel subsidy in May, while neighboring Kenya unveiled its sixth stimulus package on food subsidies on Wednesday to protect its residents from the rising cost of living.

In some areas of Uganda, the price of fuel has rocketed from $1 last year to $2. The price of maize flour per kilogram has increased from $0.47 to approximately $1.

Back to top button