By Watchdog reporter
The next time you hear the dollar has jumped through the roof, don’t buy the usual rhetoric of oil prices, high cost of imports, et al. The answer is simple. MTN Uganda is going to take out a total of Sh800 billion to pay its shareholders who are paid in dollars.
Putting the amount in dollars, that would come to about $22 million.
Our sources say the multinational telecom has already started buying dollars locally in bits so that the firm doesn’t shock the fundamentals of the economy at once.
There are complaints from sensible economists and politicians saying it doesn’t make sense for multinationals to draw out their capital as they wish like the present economic model Uganda is using.
When investors withdraw or repatriate their capital or profits at once, the shock is always felt by the locals.
And wait, by the time MTN pays out its shareholders, the dollar rate will be biting everyone.