Journal Issue
Share
Article

Uganda: Fifth Review Under the Policy Support Instrument and Request for Waiver of an Assessment Criterion and Modification of Assessment Criteria—Informational Annex

Author(s):
International Monetary Fund. African Dept.
Published Date:
November 2015
Share
  • ShareShare
Show Summary Details

Fund Relations

Membership Status: Joined: September 27, 1963. Article VIII

General Resources Account:

SDR Million%Quota
Quota180.50100.00
Fund holdings of currency (Exchange Rate)180.51100.00
Reserve Tranche Position0.000.00

SDR Department:

SDR Million%Allocation
Net cumulative allocation173.06100.00
Holdings47.4927.44

Outstanding Purchases and Loans:

SDR Million%Quota
ECF Arrangements0.200.11

Latest Financial Arrangements:

TypeDate of ArrangementExpiration DateAmount Approved (SDR Million)Amount Drawn (SDR Million)
ECF 1/Sep 13, 2002Jan 31, 200613.5013.50
ECF 1/Nov 10, 1997Mar 31, 2001100.43100.43
ECF 1/Sep 06, 1994Nov 09, 1997120.51120.51

Projected Payments to Fund 2/

(SDR Million; based on existing use of resources and present holdings of SDRs):

Forthcoming
20152016201720182019
Principal0.20
Charges/Interest0.020.070.070.070.07
Total0.020.270.070.070.07

Implementation of HIPC Initiative:

OriginalEnhanced
I. Commitment of HIPC assistanceFrameworkFrameworkTotal
Decision point dateApr 1997Feb 2000
Assistance committed by all creditors (US$ Million) 3/347.00656.00
Of which: IMF assistance (US$ million)68.9091.00
(SDR equivalent in millions)51.5168.10
Completion point dateApr 1998May 2000
II. Disbursement of IMF assistance (SDR Million)
Assistance disbursed to the member51.5168.10119.61
Interim assistance−-8.208.20
Completion point balance51.5159.90111.41
Additional disbursement of interest income 4/−-2.062.06
Total disbursements51.5170.16121.67

Implementation of Multilateral Debt Relief Initiative (MDRI):

I. MDRI-eligible debt (SDR Million)5/87.73
Financed by: MDRI Trust75.85
Remaining HIPC resources11.88
II. Debt Relief by Facility (SDR Million)
Eligible Debt
Delivery DateGRAPRGTTotal
January 2006N/A87.7387.73

Implementation of Post-Catastrophe Debt Relief (PCDR): Not Applicable

Safeguards Assessments:

Under the Fund’s safeguards policy, assessments with respect to the PSI are voluntary. An update assessment of the Bank of Uganda (BOU) was completed on April 10, 2007 and concluded that the BOU had strengthened its safeguards framework since the 2003 assessment. The main achievements included implementation of international financial reporting standards, publication of financial statements, establishment of an audit committee, and strengthening of the internal audit function. Staff recommended addressing remaining vulnerabilities in the legal and internal control areas.

Exchange Rate Arrangement:

The official exchange rate is determined on the interbank market for foreign exchange. Uganda’s de jure exchange rate arrangement is free floating, and its de facto is floating. As of end-September, 2015 the official exchange rate was USh 3,695.25 per U.S. dollar. The exchange system is free of restrictions on the making of payments and transfers for current international transactions.

Article IV Consultation:

The Executive Board concluded the last Article IV consultation on June 29, 2015. The next Article IV consultation will be held in accordance with the decision on consultation cycles adopted by Decision No. 14747, as amended.

Technical Assistance:

Uganda has continued to receive extensive technical assistance from both IMF and East AFRITAC (regional technical assistance center).1 Key areas of assistance include PFM, revenue mobilization, mining and oil resource management, and international taxation on the fiscal side. MCM and East AFRITAC have been providing a series of missions focusing on financial stability since the beginning of 2014, covering a wide range of areas, including insurance company supervision, mobile payment regulation, payment systems, and oversight policy.

More particularly, on the fiscal area, in June 2015, an AFE PFM mission followed up ongoing work on assisting the authorities in improving cash management. The mission focused on expanding the coverage and operation of the Treasury Single Account, and strengthening cash forecasting with the aim of more active cash management. Improving the Program-Based Budgeting structure and budget documents was also discussed in an August mission. The second mission under the project on extractive industry fiscal regimes in Uganda, supported by the IMF’s Trust Fund on Managing Natural Resource Wealth, took place in July 2015, and discussed how to implement fiscal regimes for extractive industries. A FAD mission in August worked together with the Uganda Revenue Authority to develop and further refine the Tax Administration Diagnostic Assessment Tool (TADAT) through a TADAT pilot assessment mission on the framework to assess the strengths and weaknesses of the tax administration system and identify priorities for reforms in tax administration.

An East AFRITAC technical assistance mission assisted the BoU to strengthen its Anti-money Laundering/ Combating the Financing of Terrorism supervisory tools and practices. Another East AFRITAC (AFE) mission provided training on supervision of reinsurance companies and assisted in the preparations of an industry seminar to introduce risk-based supervision in October 2015. A mission to the BOU advised on prudential regulations for mergers and acquisitions in October 2015 while another assisted in a pilot examination on consolidated supervision.

On the data field, East AFRITAC fielded a mission to develop quarterly GDP estimates by expenditure in July/August.

Resident Representative:

The Fund has maintained a resident representative in Uganda since July 1982. Currently, the Senior Resident Representative, Ms. Ana Lucía Coronel, is also Mission Chief for Uganda.

Joint World Bank-IMF Work Program

TitleProductsProvisional Timing of Missions (if relevant)Expected Delivery Dates
World BankThe current IDA portfolio consists of 19 active operations with net commitment of $2.5 billion, and 5 regional projects with net commitment of $149 million. The disbursement rate remains low, with $1.65 billion undisbursed. About 60 percent of the portfolio finances transport and energy infrastructure investments. Other key sectors include agriculture, water, urban development, education, health, and private sector competitiveness. Five of the eight projects approved by the Bank Board during FY2014/15 are still not effective, including the skills development project, energy for rural transformation II project, agriculture cluster project; multi-sectoral food security information; and NUSAF3. The Bank is managing other trust funded projects such as the $100 million fund for teacher and school effectiveness (under the Global Partnership for Education facility grant), and other smaller grants.
A Development Policy Loan Operation (DPO) is being discussed for possible disbursement during FY2015/16.November 2015Board presentation in April 2016.
The Public Investment Management project (with support from DFID trust fund) aims at streamlining analysis and appraisal of projects, as well as starting the process of building capacity to this end.OngoingProject to close in December 2015.
Economic update (two series) Special focus to be determinedMission ongoing with the dissemination of the economic update with special focus on land.Next update expected in March 2016.
Fund Work ProgramFifth review of the PSIOctober 2015December 2015
Sixth review of the PSIMay 2016June 2016
TA priorities:
  • Public Financial Management

  • Customs Administration

  • Tax Administration

  • Fiscal Transparency

  • Natural Resource Taxation

  • Central Bank Governance

  • National accounts

November 2015

TBD

October 2015

April 2016

October 2015

TBD

February 2016

November 2015

TBD

October 2015

TBD

October 2015

TBD

February 2016
Joint Work ProgramJoint DSA updateMay 2016June 2016

Statistical Issues

(as of October 30, 2015)

I. Assessment of Data Adequacy for Surveillance
General: Overall data provision is adequate for surveillance purposes, although some shortcomings remain.
Real Sector Statistics: Since 2004 Uganda has been receiving technical assistance (TA) from the East African Technical Assistance Center (East AFRITAC) on the compilation of annual and quarterly national accounts and price statistics. With assistance from East AFRITAC and an external consultant, the Uganda Bureau of Statistics (UBOS) developed supply and use tables (SUT) that include preliminary product balances for 155 activities by 161 products. An East AFRITAC mission in May 2014 assisted in finalizing the SUT and rebasing the annual and quarterly GDP estimates at current and constant prices. The rebased GDP estimates (FY2009/10) were released in November 2014. An East AFRITAC mission in July-August helped improve expenditure measures of GDP, and a planned mission is expected to develop quarterly expenditure measures in current and constant prices. STA has begun a project to assist the authorities to strengthen financial transactions accounts and balance sheets by institutional sector, and is planning a workshop on real estate prices for EAC countries to assist the authorities with the property price index that Uganda is developing. Labor market indicators such as employment and wages/earnings are infrequently compiled and disseminated. UBOS aims to compile and disseminate these data categories on an annual basis, but due to resource and data unavailability, these data are compiled with a two year lag. The consumer price index (CPI) series released in January 2010 were replaced in June 2014 by the new CPI series that use the expenditure weights from the 2009/2010 Uganda National Household Survey. UBOS compiles and disseminates a Producer Price Index (PPI) for manufacturing (separately for imports and domestic output) and for hotels. East AFRITAC has been providing TA to rebase and expand the coverage and quality of the PPI and to develop export and import price indices.
Government Finance Statistics (GFS):

The Ministry of Finance, Planning and Economic Development (MoFPED) compiles and reports annual (GFSY) budgetary central and local government data and monthly (IFS) budgetary central government data on a cash basis following the Government Finance Statistics Manual 2001 (GFSM 2001). East AFRITAC is providing technical assistance to the national authorities to expand the coverage and improve the quality of these statistics. The national GFS Technical Working Group, comprising representatives from MOFPED, UBOS and the Bank of Uganda (BOU) are working on the implementation of GFSM 2014 to meet East African Monetary Union (EAMU) Protocol’s fiscal statistics requirements. This work will result in important improvements in the Uganda’s GFS, such as expansion of coverage to the general government sector by June 2016. In addition, according to the plan, Uganda will disseminate estimates of the stock of financial assets and liabilities by 2017 and will complete implementation of GFSM by the end of 2017.
Monetary and Financial Statistics: TA in FY2015/16 aims at improving the institutional coverage and classification of other depository corporations (ODCs) and initiating the collection and compilation of data for other financial corporations, mainly insurance companies and pension funds. This would build on previous missions financed by DFID on the standardized report forms (SRFs). Uganda began publishing SRF-based monetary data from 2002 in IFS beginning in early 2009. In addition, the TA also aimed at developing a system that would allow the BOU to collect information on financial positions with non-residents in the other East African Community (EAC) partner states, for the purpose of compiling union-wide MFS for the EAC. The BOU compiles and submits to STA all core financial soundness indicators (FSIs) and some FSIs for deposit takers, households, and real estate markets.

External Sector Statistics (ESS): The BOU, with the assistance of East AFRITAC has improved the quality and timeliness of ESS and implemented Balance of Payments and International Investment Position Manual (BPM6) standards. In May 2015, an STA technical assistance mission visited Uganda to finalize the compilation methods for the unit value based export and import price indexes, as well as develop more reliable survey based export and import indexes.
II. Data Standards and Quality
Uganda is participating in the IMF–DFID Enhanced Data Dissemination Initiative, Quarterly National Accounts (QNA) Statistics Module. An initial mission was undertaken during November 2010 to review the data sources and compilation methodology used to compile QNA estimates and to make recommendations for improvements. Follow-up missions were undertaken during May and November 2011, May and November 2012, and May and November 2013. CPI, PPI and annual estimates of rebased GDP have been released. Major improvements have been made to the associated data sources, especially benchmark surveys and the compilation methodologies. Comprehensive supply and use tables (SUTs) have been compiled; and quarterly GDP by production approach (GDP-P) at constant and current prices disseminated. The quality and timeliness of the ESS has been improved and the estimates are consistent with the BPM6 standards.Uganda has been GDDS participant since May 2000. In February 2005, a STA mission prepared a Report on the Observance of Standards and Codes (ROSC), with results published in July 2006. The ROSC mission assessed data compilation and dissemination practices against international standards in national accounts, prices, government finance, and balance of payments statistics. The monetary and financial statistics were not assessed.
III. Reporting to STA
Uganda reports government finance statistics (GFS) data according to the GFSM 2001 framework for the GFS Yearbook, but does not report any high frequency data for inclusion in the International Financial Statistics (IFS). The BoU reports regularly monetary data for the central bank and ODCs in the SRF format, and it also reports all core FSIs and some FSIs for deposit takers, households, and real estate markets.

Formerly PRGF.

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts can not be added.

Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

For a description of technical assistance provided prior to June 2015, see the staff report for Uganda: 2015 Article IV Consultation and Fourth Review Under the Policy Support Instrument (IMF Country Report No. 15/175). Refer to the staff report for Uganda First Review Under the Policy Support Instrument (IMF Country Report No. 13/375) for the details on technical assistance for the second half of 2013; to the staff report for Uganda Second Review Under the Policy Support Instrument (IMF Country Report No. 14/195) for the details on technical assistance for the first half of 2014; and for the Third Review Under the Policy Support Instrument (IMF Country Report No. 14/344) for the details on technical assistance for the second half of 2014.

Other Resources Citing This Publication