Uganda: Minister Musasizi Urges Ugandans to Stay Calm As Shilling Weakens, Outlines Government Response

What the report says

Uganda’s finance minister, Henry Musasizi, has called on the public to remain calm as the shilling weakens, saying the government is using a mix of fiscal and monetary steps to steady the economy. The remarks, reported by Nile Post and distributed by AllAfrica, were made during an interview on NBS Television’s Morning Breeze programme in Kampala on 29 October 2026.

Musasizi said part of the pressure on the currency reflects external conditions, including higher global oil prices and conflict in the Middle East, which have raised uncertainty in international markets and pushed up import costs. He noted that a weaker shilling makes imported fuel, machinery and other goods more expensive in local currency terms, which can feed into higher costs for businesses and consumers.

According to the minister, the government’s longer-term response is to reduce dependence on imports by increasing domestic production and exports. He pointed to manufacturing, agriculture and agro-processing as priority areas, saying greater local output and value addition could bring in more foreign exchange and ease pressure on the currency market. He also said the state plans to limit non-essential spending and focus resources on priority and growth-related items.

Musasizi added that the Bank of Uganda has already raised the Central Bank Rate to 12 per cent and increased the Cash Reserve Ratio to help contain inflation and manage liquidity. He cautioned against relying mainly on subsidies or foreign exchange reserves, arguing that more sustainable solutions are needed to support macroeconomic stability.