MP Wakida Criticises 'Musevenomics' Amid Shilling Depreciation and Rising Inflation

Kabweri County MP Patrick Godfrey Wakida has publicly questioned the effectiveness of President Yoweri Museveni’s economic management philosophy. According to the legislator, the tumbling shilling, escalating inflation, and higher borrowing costs are exposing major structural tensions in the government’s ambitious framework for rapid national economic growth.

Wakida specifically targeted ‘Musevenomics,’ the economic philosophy that attempts to balance market forces, state guidance, and national economic sovereignty. Citing figures from Bloomberg as of October 22, Wakida noted that the Ugandan shilling had suffered significant pressure, losing 14.68% against the US dollar year-to-date. He attributed this slide to capital outflows, increased dollar demand from manufacturers, and elevated international oil prices.

Furthermore, the legislator highlighted that foreign investors had withdrawn approximately $200 million from Uganda’s financial markets within a two-week span as they chased higher yields in US Treasury securities. This currency depreciation has directly fueled domestic price pressures. Data from the Uganda Bureau of Statistics indicates that annual headline inflation rose to 4.6% in September, while annual energy, fuel, and utilities inflation spiked to 14.5%.

While President Museveni has historically resisted using foreign exchange reserves to defend the currency—preferring instead to promote domestic production and reduce import reliance—critics argue this stance creates severe short-term trade-offs. The Bank of Uganda has attempted to stabilize the economy by raising the Central Bank Rate to 12%, but higher lending rates and expensive credit now threaten investments in key priority areas like agro-industrialization, tourism, and mineral-based development.

As businesses grapple with steeper operational costs for imported machinery, fuel, and industrial inputs, questions remain over whether long-term local production goals can materialize quickly enough to relieve everyday households. Read the full report on Nile Post.