Conservative Party president John Ken Lukyamuzi has criticised President Museveni’s proposal to rely on exports to stabilise the depreciating Ugandan shilling, urging the government to consider using part of the country’s foreign exchange reserves to support the local currency.
Mr Lukyamuzi argued that Uganda’s export earnings were too small to effectively strengthen the shilling, proposing that at least $2.5 billion be drawn from the country’s foreign exchange reserves to ease pressure on the currency.
“I would not buy the proposal of President Museveni that we should depend on exporters. The exports are very negligible, immeasurably negligible,” Mr Lukyamuzi said on Tuesday in Kampala.
His remarks follow a debate over how best to respond to the shilling’s depreciation, with the Bank of Uganda proposing the use of part of the country’s foreign exchange reserves to support the local currency, while Museveni has favoured boosting exports as a more sustainable solution.
Uganda’s foreign exchange reserves were estimated at between $6 billion and $6.7 billion in the figures cited in the debate.
Mr Lukyamuzi made the remarks during a Tuesday press briefing Kampala, where he was accompanied by the party’s Secretary General, Mr Kasozi Bukenya, and founding member Grace Ssebina.
He called on the government to consider direct intervention in the foreign exchange market through the Bank of Uganda, arguing that relying on export earnings alone would not adequately address the pressure on the shilling as it touched over Shs4,500 per US dollar this week, its weakest level in 33 years.
Meanwhile, Mr Bukenya urged the government to tackle corruption and reduce public expenditure, saying these measures could help ease economic pressures.
He called for cuts in unnecessary government spending and a reduction in the recruitment of public servants and creation of new positions.
“The government should cut on its expenditure, reduce on recruitment and creating new posts, among others,” Mr Bukenya said.
The shilling’s depreciation and rising fuel prices have raised concerns about the cost of doing business and the impact on households, particularly as businesses face higher costs for imported goods and other inputs.
The government has partly attributed pressure on the currency and rising fuel costs to geopolitical conflicts and changes in global capital flows.
Beyond the economic debate, Mr Lukyamuzi called for inclusive dialogue between the government and opposition political parties, saying meaningful engagement was necessary to promote peace and democracy.
He said the Conservative Party supported national dialogue but insisted that the process should deliver tangible outcomes rather than remain a political formality.
“We embrace the national dialogue, but it must have purpose and intent to reach us somewhere,” Mr Lukyamuzi said.
He added that the government should take the lead in promoting dialogue, arguing that Parliament had not adequately addressed the matter.
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