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    Deal: Over 50,000 Housing Units to be supplied as NWSC and NHCC Sign Water Partnership MOU

    From Streams to Screens: Here Unveiling the IT and Digital Transformation of Uganda`s National Water and Sewerage Corporation Corp

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    Micho: The `Serbian Wol-Off`s Second Marriage Whose Divorce was Simply a Waste of Time, One With Magogo and Not for Football

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    Trouble as Ministry of Internal Affairs is drawn into a High-Stakes Child Custody Battle Involving a Prominent City Car Dealer being Accused of Immigration Influence

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    Deal: Over 50,000 Housing Units to be supplied as NWSC and NHCC Sign Water Partnership MOU

    From Streams to Screens: Here Unveiling the IT and Digital Transformation of Uganda`s National Water and Sewerage Corporation Corp

    Stealing A Glance at Balokole Polls: Pastor Kyazze Takes Early Lead as Bisiyaga Assumes the Center Stage at The Election of New Leadership Today

    Stealing A Glance at Balokole Polls: Pastor Kyazze Takes Early Lead as Bisiyaga Assumes the Center Stage at The Election of New Leadership Today

    Fake Blackmail: Let Ham Deliver Nakivubo Stadia instead of Labeling Bond Okello, Audrine Nsubuga Unpatriotic

    Fake Blackmail: Let Ham Deliver Nakivubo Stadia instead of Labeling Bond Okello, Audrine Nsubuga Unpatriotic

    Heroine! Presidency Minister Milly Babalanda Saves Kyabazinga from Physical Assault at the Canada Busoga Symposium

    Heroine! Presidency Minister Milly Babalanda Saves Kyabazinga from Physical Assault at the Canada Busoga Symposium

    All Royal: HRH Kamuswaga Concludes His Official Trip to California with Lots of Investors` Attraction to Kooki Kingdom

    All Royal: HRH Kamuswaga Concludes His Official Trip to California with Lots of Investors` Attraction to Kooki Kingdom

    Of Daily Monitor’s 30th Well-Earned Birth Bazaar And the Tough Scribes That Have kept M7`s Sleep in Constant Check

    Of Daily Monitor’s 30th Well-Earned Birth Bazaar And the Tough Scribes That Have kept M7`s Sleep in Constant Check

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Tech
    • All
    • Apps
    • Gadget
    • Mobile
    • Startup
    Digital Technologies Could Help Uganda’s Economy Recover Faster

    Digital Technologies Could Help Uganda’s Economy Recover Faster

    Liquid Telecom to host first cloud event of its kind in Uganda

    Liquid Telecom to host first cloud event of its kind in Uganda

    TECNO Mobile Uganda Skills Graduates Through Its Graduate Trainee Program

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    UNBS closes Sunshare factory over failure to comply with Standards

    UNBS closes Sunshare factory over failure to comply with Standards

    Outgoing PRAU President Cynthia Mpanga (right) hands over the key to new PRAU President Sarah Kagingo as PRAU Patron Min. Frank Tumwebaze looks on

    Hon. Frank Tumwebaze graces PRAU Governing Council Handover Ceremony

    UG Pineapple at B&W

    It was Blankets and Pineapple Waragi as SA’s Distruction Boys entertain Kampala

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
  • Entertainment
    • All
    • Gaming
    • Movie
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    Fare Thee Well Darling: Delicately Voiced Singer Evelyn Nakabira ‘Lagu’ Goes Home Sad and Disappointed but with a Hope-filled Smile

    Fare Thee Well Darling: Delicately Voiced Singer Evelyn Nakabira ‘Lagu’ Goes Home Sad and Disappointed but with a Hope-filled Smile

    Micho: The `Serbian Wol-Off`s Second Marriage Whose Divorce was Simply a Waste of Time, One With Magogo and Not for Football

    Micho: The `Serbian Wol-Off`s Second Marriage Whose Divorce was Simply a Waste of Time, One With Magogo and Not for Football

    Fahad Kawooya aka Uncle Bean: The Suzan Makula and Bujingo Villain who has Beaten all Odds to Miraculously get his Canada Dream Come True

    Fahad Kawooya aka Uncle Bean: The Suzan Makula and Bujingo Villain who has Beaten all Odds to Miraculously get his Canada Dream Come True

    MC Kats Set to Dent his Uganda Entertainment Profile and Enter the Gates of Hell if He Doesn’t Back Off the Consistent and Principled Alien Skin

    MC Kats Set to Dent his Uganda Entertainment Profile and Enter the Gates of Hell if He Doesn’t Back Off the Consistent and Principled Alien Skin

    Uganda and Kenya Still have to Prove their Might on the Continent as Organizers Kick Out the Afcon 2027 Bidding Neighbors Out of Maiden Clubs

    Uganda and Kenya Still have to Prove their Might on the Continent as Organizers Kick Out the Afcon 2027 Bidding Neighbors Out of Maiden Clubs

    No Thank You: Before we ‘Must’ Say Thank You, Take a Look at the Sickening Outside of the Beautiful Interior of Ham Kiggundu’s Nakivubo Stadium

    No Thank You: Before we ‘Must’ Say Thank You, Take a Look at the Sickening Outside of the Beautiful Interior of Ham Kiggundu’s Nakivubo Stadium

  • Lifestyle
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    Trouble as Ministry of Internal Affairs is drawn into a High-Stakes Child Custody Battle Involving a Prominent City Car Dealer being Accused of Immigration Influence

    Trouble as Ministry of Internal Affairs is drawn into a High-Stakes Child Custody Battle Involving a Prominent City Car Dealer being Accused of Immigration Influence

    Tribute to Elly Wamala: Remembering the Ever-Green Icon, the Father of Uganda’s Music Recording Industry and His Unforgettable Legacy

    Tribute to Elly Wamala: Remembering the Ever-Green Icon, the Father of Uganda’s Music Recording Industry and His Unforgettable Legacy

    Musambwa Goes Dormant: Government Soldiers Secure Buganda’s Mysterious Shrine Amidst Renovations of Mandela National Stadium”

    Musambwa Goes Dormant: Government Soldiers Secure Buganda’s Mysterious Shrine Amidst Renovations of Mandela National Stadium”

    Finding Peace and Healing: Sleeping with your biggest enemy sounds illogical! It is hard to safely put up with the real source of the trauma but…

    Finding Peace and Healing: Sleeping with your biggest enemy sounds illogical! It is hard to safely put up with the real source of the trauma but…

    Cross-Border Collaboration: Uganda’s NWSC and Malawi’s LWB Forge Strong Ties in Urban Sewerage Management

    Cross-Border Collaboration: Uganda’s NWSC and Malawi’s LWB Forge Strong Ties in Urban Sewerage Management

    ROARING MAJESTY: Taking You Around the Wilderness Trenches and Unravelling the Epic Saga of the King of The Jungle and His Fight for Survival

    ROARING MAJESTY: Taking You Around the Wilderness Trenches and Unravelling the Epic Saga of the King of The Jungle and His Fight for Survival

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Opinions
    UNBS closes Sunshare factory over failure to comply with Standards

    UNBS closes Sunshare factory over failure to comply with Standards

    UG Pineapple at B&W

    It was Blankets and Pineapple Waragi as SA’s Distruction Boys entertain Kampala

    To Connect the Unconnected with Innovations towards Inclusive Growth

    To Connect the Unconnected with Innovations towards Inclusive Growth

    Cindy Sanyu

    Cindy Sanyu to headline Eastern Megafest

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Tighten Your Belts: The Ugandan Economy Will Continue to Crawl in Inflationary Mode Until Christmas or Beyond

Ebola might have caused Uganda a loss of UGX5.6Tn as Tourists shunned the country out of fear of contracting it

November 1, 2022
inBusiness, Featured, Local News, Opinion
Ug Economy in Autopilot: But Now That It’s Raining and Fuel Prices Gone Down, We Need a New BOU Governor 

Doing a disservice to the country: Ggoobi (Courtesy Photo)

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This week, State Minister for finance Hon Henry Mutesasira was set to meet the Parliamentary Committee on the economy, in a bid to appropriate over UGX1.7Tn debt from Stanbic Bank – England Chapter, as part of the huge debt burden that has been piling to a tune of close to UGX44 trillion.

According to records as at June 2022, the debt-to-GDP ratio stood at 48.6 percent which is worryingly set to go beyond 50%. This means that the country is almost getting dependent on debts to run the economy. By the time of authoring this article, the Committee on National Economy was set to have a meeting with the Ministry of Finance. Again, to consider the urgent assignment of scrutinizing the request by the government to borrow up to €455.03m from Standard Chartered Bank and other financial institutions, to finance the development and infrastructure budget for the FY2022/2023.

Once the loan is secured it will be put in the Consolidated Fund and utilized to finance the appropriated Domestic Development budget across all programs. Last year, the government made a call for interested financiers to provide the loan and Standard Chartered Bank United Kingdom emerged as the best bidder, with the lowest financing terms.

There is a lot of evidence to show that the government is cash-strapped and was summoning the legislators for a temporary fix to a bad situation. With the economy now steadily crawling into a sustained recession, it might get worse before it gets better. There are tell-tale signs that the inflationary pressure might continue to bite into the Christmas period and beyond FY2022.

Although the country has been affected by imported inflation occasioned by the war in Ukraine, the local issues have also played a huge part in undermining the economy. There are events that have simply made it hard for the economy to recover. For instance, the recent resurgence of the Ebola virus created an immediate problem that affected the whole economy. First of all, the tourism sector which is known to be Uganda’s biggest foreign exchange earner, was deeply affected as the pandemic killed the Ugandan brand as a tourist destination.

According to the records in the financial year, 2018–2019, tourism earned Uganda’s GDP 5.6 trillion Ugandan shillings (US$1.60 billion or €1.3 billion as of Dec 2019) from 1.6 million tourists. With the resurgence of Ebola, all that 5.6 trillion was set to evaporate because no single tourist can visit a country that has been affected by a pandemic of Ebola proportions.

In fact, there are rumors that the President was almost going to announce an impromptu Ebola lockdown, but was dissuaded by the negative impact it would have on the tourism sector. In fact, the matter has been so sensitive that the strategists have advised the ministry of health to stop giving out the rising cases of Ebola infections and deaths because it has the immediate effect of scaring away investors and tourists. The Ebola effect has also undermined the local economy in the sense that the locals have cut down on their recurrent expenditures out of fear that the situation might worsen and find them broke.

They have therefore stopped honoring paying back loans and halted their investment plans. As a result, parents have not paid school fees out of fear that the pandemic might spread further and attract closure of schools. There has been that silent panic which has resulted into the constriction of the economy.

The Effect of Bogus Policies

To make matters worse, the local economic technocrats have made it very difficult by instituting harsh economic policies at a time when they should have reflected on the economic conditions prevailing in the country. The badly-thought-out taxes which have been slapped on the business community have made it difficult for the economy to recover to its potential.

For instance, the last two months, Ugandan Revenue Authority impounded hundreds of trucks full of animal feeds at the border points. The spat which we covered in these pages originated from a tax which the revenue authorities slapped on the feeds, resulting into the high prices of pork and poultry products like chicken and eggs on the local market. Obviously, it’s imperative to note that if this tax had been well thought-out, this hike in prices of these products would have not occurred regardless of the imported inflation that has pushed up fuel prices for the last six months.

Deadly Winter Season

But one of the biggest fears at the moment is that the war in Ukraine is going to take another turn for the worst due to the oncoming winter season. Russia being the biggest producer/exporter of gas intends to stop selling even the little gas it has been exporting to European countries. This stance, to punish them for their role in the war.

As a result of this, the European countries are already planning to divert all its resources to purchase gas, grain and all the goods previously imported from Russia. This will require huge amounts of resources to fund the whole winter season. How will this affect African countries like Uganda? African countries like Uganda will not be able to access aid, grants or debt from the European entities until the end of the winter season.

Even the 1.7 trillion-shilling debt requisition which we talked about in the first paras of this article will not be easily accessed or given to the Ugandan government. This will affect the budgetary framework to an extent that the intended sectors for this money will suffer from lack of funding. It turns out that we could be set for one of the toughest ends of the year and endure one of the worst Christmas festivals ever.

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Fred Daka Kamwada
Fred Daka Kamwada
Fred Daka Kamwada is a seasoned journalist, blogger and political analyst for over a decade in Uganda
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Tags: Ministry of Finance UgandaRamathan GgoobiUgandan economy crawling and counting
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Comments 1

  1. Niyokwizera says:
    11 months ago

    There is a difference between a pandemic and an epidemic. Ebora is not a pandemic because it has not affected the country to such proportions.

    The running away of tourists is a result of exaggerating the whole problem. The disease can be controlled in my view and not be given too much publicity as it has been done.

    Remember publicity is so expensive. It costs a lot to have a good name and to keep it

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