The story I was told is that the politicians who control the finances are 'importing' forex at these (artificially) high levels then parking it in (high) 10% TBs so they are ready for 2012...

UGX also gone to the dogs!
http://www.businessdaily...54/-/ed8o89/-/index.html

My friend, it is still falling even AFTER the BoU intervened. I wonder how bad it will get. I am this close to bringing my money home! Or convert to US$ or Yen.

BTW, did you see dfcu's results? +23% but the gains in PAT in UGX wiped out by devaluation. I am glad you bought the land which should appreciate as UGX depreciates. The way it is going, I might ask you for a room to stay in rent free!

@young - Just frustrated!
Compare Ghana vs Uganda & I see better prospects there.

My Ghana investments have done very well for me. It even pays for my flights there [& those are EXPENSIVE flights!]

Uganda - My profits have turned to losses.

I agree with the long-term perspective BUT:

WB also invests in Management i.e. if Uganda had good leadership (Rwanda, Mauritius, Botswana) but got hurt by other factors e.g. Global Financial Crisis then buy, buy, buy... since those will abate

museveni buys $750mn warplanes instead of paying electricity firms. Now Uganda faces severe power rationing.

My 'problem' is that he will refuse to leave. Most 'bad/poor/pathetic/thieving' African presidents live very, very long lives. See moi, mugabe, mubarak, etc until they are killed or overthrown. And museveni is physically very fit & unlikely to leave the seat!

Ghana: Non-violent change from Kufuor to Atta-Mills (who was in the opposition). Oil production is running well & increasing monthly. Also the cash is being 'stored' for the future & for infrastructure. The oil is off-shore & easy to export. Also potential on-shore finds.

Uganda: Oil is 4-5 years away & it cannot be transported to Mombasa by an unheated pipeline. A decent sized refinery would take 5-7 years to be built.

So in my own way, I am comparing Uganda to Ghana. I pray I make the right choice when I do!

BTW, as always, thanks for you input & views. The UGX land investment was in retrospect very smart! You will get it much cheaper than you thought!!!

In early 2012 UG expects to atleast start fuelling its thermal power using their own oil. 2ndly, by mid-2012 the 250MW Bujagali Hydro will be fully operational. The rest of the thinking I leave to all of you.