Tightening the economic belt

A security officer making a mobile money transaction

My friend from Nyamiyaga called me the other day and suggested that we should start using the same car to work.

The prices of fuel have become unbearable, the dollar is misbehaving, and our salaries are fixed. They cannot rise similarly. And I listened carefully. You see there is very clever wisdom in this proposal.

After all, these are not ordinary times. Every litre of fuel counts, every shilling matters. And trust me every individual is a genius on survival to wade off the rising cost of living. I asked him a simple question: “Which car are we talking about; his or mine?” He became silent.

That silence of this may not work. The solution is there, but we did not agree on who would provide the vehicle! If you want to accept, this is precisely the kind of conversation we may need, to confront the economic pressures we are facing.

It is time to tighten the belt, not necessarily because we are lacking, but because the economic environment demands that we become more frugal. The men of God can arrange for more fellowships and “heal more” with miracles.

Perhaps that’s how they survive and thrive. But you won’t survive my brother if he deems you a false prophet. We have watched the exchange rate rise with growing concern. The shilling has weakened beyond Shs 4,000 against the US dollar.

And some commercial banks have also shot up their lending rents. Even if you are gumite. The economic outlook points to some tough times and more so as we approach festivities. But Ugandans know how to exploit such economic crises.

The monster of free markets and limited interventions for regulation. But why should a man from Nyamiyaga be worried about the dollar? Uganda imports heavily, including petroleum, medicines, machinery and other essential goods.

When the shilling weakens, importers need more shillings to purchase the same amount of dollars. Those additional costs are passed on to consumers. And even when we produce, we still want to match the prices. Greed is good.

Diesel prices have climbed beyond Shs 7,100 per litre. The pressure is attributed to international petroleum prices, exchangerate movements, taxes, freight and insurance costs. What’s happening to the world?

Can’t we put an end to these geopolitical conflicts. You don’t matter. Where do you sit in the economic chain of capitalism? When fuel becomes expensive, the consequences extend beyond motorists.

Transporters charge more, higher delivery costs, you and I may have to pay more for goods brought from these people. The baker doesn’t make bread because he wants you to eat bread. Is my Nyamiyaga friend’s proposal valid?

Imagine four colleagues living in the same neighbourhood and instead of each driving a separate car, they could agree to use one vehicle, take turns driving and share fuel expenses.

The savings could be substantial, less congestion, improve social connections, reduce individual comfort and convenience blah blah. Where possible, buying locally produced goods and in the local markets can support our farmers, manufacturers and small businesses.

Strengthening domestic production and exports is important for reducing vulnerability to external shocks, although these broader economic changes take time. And tightening the belt does not mean abandoning every pleasure or living in constant fear of tomorrow.

It means making thoughtful choices, avoiding unnecessary debt and ensuring that our money serves our most important needs. In the meantime, let us share rides where practical, budget carefully, grow some food, reduce waste and save what we can.

We may not control the dollar, international oil prices or the global economy, but we can control some of the decisions we make. As for my Nyamiyaga friend, we still need to settle the question of whose car we shall use.

I suspect he wants us to share the fuel bill, but I am not yet convinced he is prepared to share the steering wheel or the vehicle itself! And perhaps our next conversation will settle the matter.

The author is a concerned citizen.

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