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President Yoweri Museveni has reaffirmed Uganda’s commitment to leveraging its vast natural resources to tap into the global carbon market.
At a high-level meeting at State House Entebbe, President Museveni hosted a delegation from Austria-based EcoNetix to explore strategic partnerships aimed at unlocking Uganda’s carbon removal potential.
The delegation, led by Olivia Mugabe Mitterer, included former Consul General Carl-Philipp Wipfler, former Austrian Minister of Environment and Agriculture Elisabeth Köstinger, and EcoNetix founders Jakob Zenz and Paul Nimmerfall.
Their discussions focused on positioning Uganda as a key player in the international carbon credit market, according to a press release from State House.
Welcoming the investors, President Museveni emphasized Uganda’s readiness to collaborate with European entrepreneurs.
“The Chinese have capital and entrepreneurship, and we have labor and land. So, I am very happy to see some European entrepreneurs exploring opportunities here,” he stated.
Uganda boasts over three million hectares of forests and 14 million hectares of agricultural land, offering immense potential for carbon removal initiatives. EcoNetix presented an ambitious plan to support high-integrity carbon credit projects aligned with Uganda’s sustainability and conservation goals.
EcoNetix co-founder Jakob Zenz expressed optimism about the partnership, stating, “We are delighted to work with the Government of Uganda to unlock its full carbon removal potential. Our goal is to support farmers and forestry projects while driving economic benefits for communities.”
The initiative is expected to attract up to $500 million in investments, reinforcing Uganda’s efforts in climate resilience and sustainable land management.
However, Uganda’s push for a robust carbon market faces a major hurdle following a UGX 135 billion budget cut in the tourism and conservation sector for the 2025/26 financial year. This reduction slashes the sector’s allocation from UGX 311 billion in 2024/25 to UGX 175.98 billion, raising concerns over the future of conservation programs.
Speaking at the Uganda Media Centre, Minister for Tourism, Wildlife, and Antiquities Tom Butime warned that inadequate funding could stall critical conservation efforts.
“Environmental conservation is both an ecological and economic necessity. It plays a vital role in our economy and the well-being of our communities. The lack of adequate investment limits our ability to address human-wildlife conflicts, poaching, illegal wildlife trade, and the impact of climate change on biodiversity,” Butime stated.
He also stressed the need for a holistic, collaborative approach involving governments, financial institutions, businesses, civil society, and local communities to ensure long-term conservation financing.
Despite financial constraints, Uganda remains committed to scaling up carbon credit initiatives to strengthen its role in the global fight against climate change. By implementing sustainable land use practices, Uganda aims to not only mitigate environmental threats but also create financial opportunities for local communities.
With EcoNetix set to become a key implementation partner, the collaboration could significantly boost Uganda’s carbon economy, turning conservation efforts into a lucrative revenue stream while promoting climate resilience and sustainable development.
President Yoweri Museveni has appointed Dr. Michael Atingi-Ego as the substantive Governor of the Bank of Uganda (BoU), replacing the late Tumusiime Mutebile.
High profile Economist and university don Prof. Augustus Nuwagaba as the Deputy Governor.
Atingi-Ego previously held a senior position at BoU before leaving and later returning in 2020 as Deputy Governor. Since the passing of long-serving Governor Emmanuel Tumusiime-Mutebile in 2022, he has been serving as the acting head of the central bank. His appointment marks a significant moment for Uganda’s financial sector, ensuring continuity in the leadership of the country’s monetary policy framework.
Dr. Atingi-Ego’s career in economic policy and financial governance spans decades. He has served in various roles both locally and internationally, making substantial contributions to macroeconomic stability. His tenure as Deputy Governor has been marked by steady inflation control and overall macroeconomic stability, earning him recognition as a highly competent leader in Uganda’s financial sector.
His ability to navigate economic challenges and implement effective monetary policies positioned him as a front-runner to replace the late Mutebile. Under his leadership, Uganda has managed to stabilize inflation and promote sustainable economic growth.
As Governor of the Bank of Uganda, Atingi-Ego will oversee the implementation of monetary policies, regulate financial institutions, and ensure the stability of Uganda’s banking sector. The central bank plays a crucial role in managing inflation, stabilizing the currency, and fostering economic development.
With Uganda’s economy recovering from global economic shocks and local challenges, Atingi-Ego’s leadership is expected to reinforce investor confidence, promote financial inclusion, and support economic growth. His expertise in monetary policy and financial governance will be essential in maintaining stability and guiding Uganda’s banking system through emerging global financial trends.
Atingi-Ego’s deputy, Prof. Nuwagaba, has been an economics don at Makerere University, and brings extensive knowledge in economic development and policy formulation, at national, regional and international levels.
Their appointments signal a commitment to strengthening the country’s financial institutions and ensuring sound economic management. Uganda’s banking sector will benefit from their combined experience and leadership in fostering financial resilience and growth.
Dr. Atingi-Ego’s appointment as Governor of the Bank of Uganda marks a new chapter for Uganda’s economic management. His experience and track record in financial policy will be instrumental in maintaining economic stability and ensuring continued growth. The government, private sector, and financial institutions are expected to work closely with the new leadership to drive Uganda’s economic development forward.
Among Bank of Uganda's roles is to keep prices stable, which means controlling inflation and ensuring that the value of the Ugandan shilling remains stable.
The Bank of Uganda is responsible for regulating and supervising financial institutions in Uganda, ensuring that they operate safely and soundly.
- The Bank of Uganda also manages the payments system in Uganda, ensuring that transactions are processed efficiently and securely.
When Andrew Mujuni lost his job as a security guard, his world turned upside down. After eight years of dedicated service, he was suddenly retrenched without warning.
With his only source of income gone, he struggled to provide for his family, and his children were forced to drop out of school due to unpaid fees.
“My wife and I were constantly arguing, and I was bitter all the time. One day, after a serious fight with my wife, a neighbour suggested I try the boda boda business. He advised me to take a loan from Watu Credit,” Mujuni recalls.
Realizing this could be his lifeline, Mujuni took the leap into the unknown. He partnered with his wife and became the rider while she managed the finances. Barely a year later, the motorbike became a symbol of hope. "My kids are back in school, my wife is happy, and we’re planning our future together," he says with pride.
For 22-year-old Simon Kalyesubula, the challenge was different but just as daunting. After losing his father, he became the family's sole provider, ensuring his younger siblings stayed in school. Without financial support, he turned to Watu Uganda for a boda boda loan.
Determined to secure a better future for his siblings, Kalyesubula worked tirelessly and eventually acquired a second motorbike, which increased his income. He has now secured a better future for his family.
It is estimated by the Private Sector Foundation of Uganda (PSFU) that the country has approximately two million motorcycles, with Kampala alone boasting of about 350,000 of them.
It is also estimated that approximately 70% of the country’s population use the boda boda for their daily transport needs, making it the mode of transport almost indispensable.
Frank Mawejje, the Chairman of the Uganda Boda Boda Association, says the sector has become a pillar of the country’s economy.
“Boda bodas provide thousands of young people with a stable source of income, contributing significantly to nation-building. We are also seeing more asset financiers helping young entrepreneurs overcome initial investment barriers, which is a huge boost to the industry,” Mawejje explains.
He also acknowledges the government’s role in making the sector more accessible by creating a favourable regulatory environment supporting financiers and riders.
To date, Watu Uganda has financed over 300,000 boda boda riders, enabling them to become self-employed and financially independent. These were previously without access to traditional credit.
Christian Kamukama, the Head of Commercial at Watu Uganda, explained: “Our financing model is designed to be flexible, with low initial deposits and manageable installment plans. We focus on business potential rather than traditional credit requirements, making asset financing more accessible—especially for youth and women-led businesses."
Kamukama said Watu Uganda is driving economic growth, transforming lives, and strengthening communities by empowering entrepreneurs with access to productive assets.
From struggling fathers to determined young men, boda boda loans are proving to be more than just a way to own a motorbike. They are increasingly being seen as a tool for empowerment for a brighter tomorrow.
The Central Bank Rate (CBR) for February will remain at the same rate of 9.75%, which has been in place since the end of last year, according to the Bank of Uganda.
The decision, announced on February 6, came as part of the BoU's Monetary Policy Statement, in which Deputy Governor Michael Atingi-Ego indicated that the near-term inflation outlook was largely contained, though external uncertainties continued to pose risks to economic performance.
In the face of global challenges, including geopolitical tensions and fluctuating global currencies, the BoU has exercised caution by keeping the benchmark interest rate unchanged. This decision underscores the importance of balancing inflation control with the need to stimulate sustainable economic growth in Uganda.
Uganda's inflation figures show a mixed picture. The core inflation rate, which the BoU aims to keep at around 5%, rose slightly to 4.2% in January 2025, up from 3.9% in December 2024. This increase was largely driven by rising costs in transport services.
While the year-on-year inflation remained relatively stable, the BoU recognizes that inflationary pressures may emerge from external sources, such as extreme weather patterns, shifts in global oil prices, and the strength of the U.S. dollar. These external factors could lead to a quicker-than-expected rise in inflation, making it all the more critical for the central bank to adopt a cautious monetary policy stance.
Atingi-Ego explained that the Central Bank anticipates core inflation to stay within a 4%-5% range over the course of 2025, but global uncertainties present a clear risk to this forecast.
The Central Bank’s ability to respond to such inflationary shocks while maintaining growth targets, is closely tied to its monetary policy framework, and leaving the CBR unchanged ensures the economy has the right mix of support to avoid destabilizing price pressures.
“Uncertainties from global developments could cause inflation to rise faster and disrupt economic activity. This situation necessitates a cautious approach to monetary policy,” Atingi-Ego said.
Despite these risks, Uganda's economic outlook remains optimistic. The BoU has maintained its growth projection for FY 2024/25 at 6.0-6.5%, with long-term growth expectations at around 7.0%.
This growth is supported by a stable macroeconomic environment, foreign direct investment (FDI) flowing into the extractive industries, and strong export performance, particularly in coffee and cocoa.
However, the Bank also recognizes that government spending pressures and external economic headwinds could dampen these growth expectations, highlighting the need for a cautious monetary policy approach.
In terms of the exchange rate, the currency has shown signs of strengthening, appreciating by 3.05% year-on-year in January 2025 compared to January 2024. This improvement has been attributed to a combination of favorable monetary policy actions, financial market reforms, and strong inflows from remittances, export receipts, and foreign direct investment. A stable exchange rate is crucial for controlling inflation, particularly in the context of imported goods and services.
The decision to maintain the CBR at 9.75% reflects the BoU’s commitment to keeping inflation under control while supporting economic growth.
“The current CBR level is adequate to control inflation while fostering Uganda's economic growth and socio-economic transformation. Future adjustments to the CBR will depend on new data and evaluation of risks,” he added.
Going forward, future changes to the CBR will depend on new economic data and evolving global risks.
As the world continues to face uncertainty, the BoU's cautious and data-driven approach will play a vital role in navigating the challenges ahead, ensuring that Uganda remains on a path of sustainable economic transformation.
When Robert Kabushenga quit his posh CEO job at Vision Group to focus on his Rugyeyo Farm, he thought he would become a living example of how coffee farming can be more lucrative than one of the fattest salaries in the country.
Indeed, Kabushenga has over the years shown a passion for coffee, and talked his voice hoarse about the entrepreneurial opportunities that coffee presents to young Ugandans, and why Ugandans should have a patriotic love for Ugandan coffee.
However, his optimism appears to have taken a downward spiral. “Folks, say a prayer for Uganda’s coffee,” Kabushenga wrote in a recent tweet on his X page, which was accompanied by a shocking picture of a sack full of green coffee cherries and another picture of a job advert for almost 100 vacant positions at the Ministry of Agriculture, Animal Industry and Fisheries.
“The political myopia and monumental stupidity that dismantled the regulator (UCDA) has sent us back decades,” he added. “We’re headed off a cliff. Maybe they will bring in soldiers to handle the way they did with fish. We didn’t need to be here. It was unnecessary.”
The Uganda Coffee Development Authority (UCDA), the long-standing regulator of the coffee industry in Uganda, was merged with the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) in November last year, following the enactment of the National Coffee (Amendment) Bill, 2024, as part of the Rationalisation of Agencies and Public Expenditure (RAPEX) policy, ostensibly aimed at streamlining public spending and reducing redundant administrative structures.
The disbanding of UCDA faced vehement opposition from a cross section of Members of Parliament and indeed almost every coffee stakeholder, over concerns of the potential negative impact it would have on the coffee industry.
Just a few months later, Kabushenga is only one of the many key stakeholders that are voicing serious disquiet. Posiano Matovu, the Chairman of the Greater Masaka Coffee Farmers Association, also expressed concern saying the dismantling of UCDA could jeopardize the market gains secured by Uganda’s coffee sector over the years.
“We, as farmers, we were never consulted,” Matovu told this publication. “At both the presidential and parliamentary levels, no one has sought our views. We need to understand if the authority is shifted to the Ministry, will we continue to benefit? MAAIF has a history of corruption scandals, and we simply don’t trust it.”
Matovu further criticized the Ministry’s poor track record in crop management, citing the failed introduction of vanilla as an example of poor planning that left farmers without markets.
He expressed fear that the excessive bureaucracy at MAAIF was slowing down service delivery and negatively impact coffee exports.
Gerald Ssendaula, Chairman of the National Union of Coffee Agribusinesses and Farm Enterprises (NUCAFE), warned that the merger would “backfire” and create more problems than solutions.
“This decision is set to backfire because there is too much red tape at the Ministry,” Ssendaula said. “Coffee is a specialized crop that requires dedicated oversight, and placing it under a general agricultural body may dilute the focus needed to maintain our export standards.”
UCDA, established in 1991, has played a significant role in boosting Uganda’s coffee sector. The authority was regulating and promoting the quality of coffee along the entire value-chain, supporting research and development, and enhancing marketing to maximize foreign exchange earnings.
Consequently, Uganda's coffee exports surged to record highs in recent years. In the last financial year, the country exported 6.3 million bags of coffee, representing a 75% increase compared to the previous year. These exports generated USD 826 million, accounting for 22% of Uganda’s foreign exchange earnings. Industry experts worry that merging UCDA with MAAIF could compromise the efficiency that has enabled such growth.
Another major concern for farmers is the absence of extension officers, who provide crucial technical support to farmers on the ground. “Coffee is a unique crop, and not all government agricultural extension officers at the sub-county and district levels understand it well,” Matovu emphasized. “Losing UCDA’s dedicated officers would be a big setback for farmers.”
The Government of Uganda, in partnership with the Uganda Energy Credit Capitalization Company (UECCC), has launched the construction of nine mini hydropower plants with a combined capacity of 6.7MW in western Uganda.
The initiative, expected to significantly boost rural electrification, was officially inaugurated by the Deputy Speaker of Parliament, Hon. Thomas Tayebwa, in the presence of local leaders, development partners, and community members.
The ORIO mini hydropower project, covering Kasese, Bushenyi, Mitooma, Hoima, Kabarole, Bunyangabu, and Bundibugyo districts, will include a 288-kilometer local distribution network to expand electricity access. The project aims to connect over 71,081 households and 2,300 small and medium enterprises (SMEs), providing stable electricity for business growth, education, and healthcare.
Tayebwa emphasized the project’s role in transforming rural communities and supporting Uganda’s industrialization agenda. “This project will provide the infrastructure needed to support industrialization and improve the living conditions of our people. For the communities in Mitooma and across western Uganda, this will unlock new opportunities in education, healthcare, business, and agro-processing,” Tayebwa said.
Ruth Nankabirwa, the Minister of Energy and Mineral Development, highlighted the project’s alignment with Uganda’s energy goals.
“This initiative will be a game-changer for rural electrification in Uganda. Upon completion, the project will deliver reliable electricity to over 376,000 people and 1,300 SMEs, cut carbon emissions by reducing diesel generator use, and enhance public health by decreasing reliance on kerosene lamps,” she said.
The project is funded by the ORIO Infrastructure Fund (now under Invest International) of the Netherlands Government, with co-financing from the Government of Uganda. UECCC secured a grant of €13.1 million (approximately UGX 50 billion) for its development.
The UECCC was established in 2009/2011 as a company limited by guarantee, owned by the Government of Uganda through MEMD, MoFPED and PSFU to facilitate investments in Uganda’s high-potential renewable energy sector.
UECCC’s mandate is to provide a reliable framework for pooling resources from Government and Development Partners (Uganda Energy Capitalisation Trust) and to channel the same to viable renewable energy projects.
It also serves as a Credit Support Institution with the objective of promoting Private Sector-led renewable energy infrastructure development.
Speaking at the event, Joost Van Ettro, Deputy Ambassador and Head of Development Cooperation at the Embassy of the Kingdom of the Netherlands in Uganda, reaffirmed the Netherlands’ commitment to supporting Uganda’s energy sector.
“Through Invest International, we have contributed UGX 50 billion, covering 30 percent of the project cost, while Uganda has committed to financing the remaining portion. Reliable and affordable energy is a key driver of economic growth worldwide, and we are proud to support Uganda in this endeavor,” Ambassador Ettro stated.
Officials said UECCC would continue to provide financial, technical and other support for Renewable Energy Infrastructure Development in Uganda, with particular focus to enabling private sector participation.
Roy Nyamutale Baguma, the UECCC Managing Director, noted that the project is to be executed in phases, with the first phase covering four sites: Nchwera, Igassa, Nsongya, and Hoimo. Construction is to be undertaken by HNAC Technology Co. Ltd from China for civil and hydro-mechanical works, while Germany’s Ossberger GmbH will handle the design and installation of turbines and electromechanical systems.
The entire project is set for completion within 24 months, promising a brighter and more electrified future for western Uganda.
The Archbishop of Kampala, Paul Ssemwogerere, has praised Kabaka Ronald Mutebi’s initiative to provide healthcare services to his people through the ‘Tubeere Balamu’ (Let's Live) community outreach program.
Speaking during a visit to the DTB-sponsored outreach at St. Joseph Parish in Kyengera, the Archbishop emphasized the critical need for accessible healthcare for all Ugandans.
"I appreciate the platform that the Kabaka has established to help his people access health service delivery. Good health is very important. Due to my work, age and responsibility, I have seen the need for health services in the country, as so many people need free access to medical services across the country," Ssemwogerere said.
The Archbishop acknowledged the state's responsibility to provide free healthcare but commended the Kabaka for taking the initiative to address the immediate needs of his people. He urged Parliament and the Cabinet to prioritize universal healthcare and ensure adequate health facilities nationwide.
"The reason churches and mosques are full of people seeking divine healing is because they don't have money to go to hospitals, even for simple ailments. While this is not bad, there should be either free or affordable health services for the people across the entire country," the Archbishop observed.
He called for increased budget allocation to the Ministry of Health, emphasizing that the state has a responsibility to keep its people healthy. He also appealed to private healthcare providers to lower costs and refrain from selling expired medicines or employing unqualified staff.
The campaign, mainly sponsored by Diamond Trust Bank, saw thousands of people throng the venue to receive various treatments.
Robert Waggwa Nsibirwa, the Second Deputy Katikkiro of Buganda, who represented the Kabaka, expressed gratitude for the support received for the "Tubeere Balamu" outreach, which began in Buddu, Masaka, last November. He encouraged people to follow medical advice and maintain hygiene.
“As you remember, this outreach started in November last year, in Buddu Masaka. We believe many people benefited from it, and we thank all the medics who provide these services during these camps. We appreciate all the support from across all platforms in our efforts to improve the health of our people. We advise our people to adhere to the instructions of the medics and to be clean,” he said.
Edward Kaggwa Ndagala, head of the Kabaka Foundation, explained that the foundation, established in 1996, serves as the Kabaka's vehicle for service delivery in various areas, including health, education, and community development.
He highlighted past successful health campaigns, such as the Hepatitis B immunization drive and the blood donation drive, which significantly increased blood donations in the country. He said the current "Tubeere Balamu" campaign aims to recruit 300,000 new blood donors.
“We launched a blood donation drive in support with the Red Cross and the Uganda Blood Bank. At the start of the campaign, they had about 20,000 regular blood donners but after the campaign, the numbers climbers to 170,000.
The current Tubeere balamu campaign for this year, we are targeting 300,000 new blood donners to alleviate blood scarcity in Uganda,” he noted.
Samuel Matekha, Head of Marketing and Communications at Diamond Trust Bank (DTB), emphasized the bank's commitment to supporting the Kabaka's health initiatives.
"As a bank, we are here to offer service to the people. We know that it is only healthy people who can work, and as a result, can use the bank's services," he said, urging people to seek professional medical care and to work hard and utilize banking services.
Telecommunications giant MTN Uganda has earmarked $100m (about UGX370) for investment in the Ugandan market. Speaking to journalists at their offices in Kampala, Sylvia Mlinge, the MTN Uganda CEO, said the capital expenditure would fund their infrastructure expansion programme countrywide aimed at driving their digital transformation agenda.
“We want to invest in rolling out our fibre infrastructure and enhance our backend aimed at driving the digitization of our services,” she said. “It’s a big investment from the technology perspective. This is to enable us give our customers the best experience.”
She stressed that digital transformation is one of their key strategic initiatives for 2025 including the integration of artificial intelligence (AI) in their technology setup.
“There's a lot of work that has been done at group level in terms of driving our AI strategy, aimed at ensuring that MTN is able to deliver efficiencies in terms of cost savings for the customer through automation,” she said.
However, Mlinge also highlighted the importance of regulation to ensure that AI is not used negatively to the disadvantage of people.
“How do we ensure that even as we participate in this space, we're also working with the regulators to ensure the ethics of AI, protecting the identity of our customers, making sure that their data privacy is also not impacted?”
Mlinge said that in line with the company’s vision of ‘everyone deserves the benefits of a digital modern connected life,’ the other priorities are maintaining their market-leader status and making sure that the government’s priorities - education, health, oil exploration, etc, are MTN’s priorities too.
“We can’t have strong companies in failing communities. Every organization that has been given the license to operate in any society has the responsibility to bring value that can drive the overall positive incomes of that society,” she said. “Our role as MTN is to empower and enable our communities. The ‘Unstoppable Uganda’ that we envision is a country where people are able to leverage on our technologies to drive their progress forward.”
She added that it is imperative that they invest in cutting-edge infrastructure such as 5G so as to offer a world-class network. MTN Uganda currently boasts of over 550 5G sites that have been deployed countrywide. They are also rolling out their fibre infrastructure to connect homes, businesses and base stations. Additionally, MTN is working with the digital entrepreneur community aimed at coming up with new services on their mobile money platform so as to unlock more value for Ugandans.
Last year, MTN launched its API platform dubbed ‘Chenosis,’ which allows entrepreneurs of whatever size and skill to connect to MTN services. It aims to foster innovation and create new opportunities for businesses and developers in Africa.
“We see an opportunity to actually unlock the potential within the technical or technology space by partnering with innovative entrepreneurs - giving them access to our platforms, especially on mobile money. We are an enabler. We create the network effect, which allows as many people as possible to be partners,” she said.
Todate, ‘Chenosis’ has enabled different segments of businesses including small entrepreneurs to interact with MTN’s technology. The company is also investing heavily in driving digital skilling and transformation both in urban and rural areas, aimed at scaling up digital literacy and transformation.
“We are partnering with organizations that are also in the same space, including UN-led organizations, to help us to bridge the digital divide,” she said.
“We have a role to play in terms of establishing, first of all, the connectivity, which is a foundation, and after that, to unlock the true value in the various segments of our customer base.”
MTN Uganda, the leading telecommunications company in Uganda, is part of the MTN Group, a multinational telecommunications company with a presence in various countries across Africa and the Middle East.
Mlinge stressed that in the New Year, they are focusing on multi-million-dollar investments aimed at expanding their fintech and digital services portfolio, including mobile financial services, data services, and other digital solutions.
Uganda continues to cement its position as a key player in the global coffee market, earning UGX424 billion (US$ 115.03 million) from coffee exports in December 2024.
According to the Monthly Coffee Report – December 2024 released by the Ministry of Agriculture, Animal Industry, and Fisheries, the country exported 413,079 bags during the month, reflecting a 2.77% increase in quantity and a remarkable 74.26% rise in value compared to the same period in 2023.
Robusta coffee dominated with 365,853 bags valued at $99.91 million, an 8.36% rise in quantity and 88.7% increase in value compared to December 2023. Meanwhile, Arabica exports totalled 47,226 bags worth US$ 15.12 million, representing a 26.57% decline in quantity but a 15.54% increase in value.
The report attributed the surge in export value to a rise in global coffee prices driven by dry conditions in Brazil and Vietnam, the largest producers of Arabica and Robusta coffee, respectively. These adverse weather conditions are expected to impact coffee yields, creating a potential supply deficit in the 2024/25 crop season.
For the calendar year 2024, Uganda’s coffee exports totalled 6.37 million bags worth US$ 1.55 billion (UGX 5.71 trillion), up from 6.12 million bags worth US$ 965.27 million in 2023. This represents a 4.12% increase in quantity and a staggering 60.61% rise in value.
"Coffee exports in 2024 have performed exceptionally well, with Robusta leading the growth in both quantity and value," the report noted. However, Arabica exports faced setbacks due to the biannual off-year cycle and poor flowering conditions in the Mt. Elgon region.
The report also highlighted the significant role of exporters, with 67% of the total volume in December handled by just ten companies out of 60 active exporters.
Top among the exporters included Kyagalanyi Coffee Limited, a company that has consistently contributed to the country’s coffee export success. Kyagalanyi Coffee Limited, one of Uganda’s oldest and largest coffee exporters, plays a key role in processing and exporting premium-quality Arabica and Robusta coffee. In December 2024, the company reported strong export volumes, leveraging its expertise in sustainable sourcing and farmer partnerships.
Notably, the highest price per kilogram, US$6.63, was fetched by Mt. Elgon A+, reflecting the premium quality of Uganda’s Arabica coffee from this region.
Despite challenges in Arabica production, Uganda’s overall performance was buoyed by strong demand and favourable global market conditions. The robust growth underscores the importance of coffee to Uganda’s economy as a major foreign exchange earner and a key driver of rural livelihoods.
As the country moves into 2025, stakeholders in the coffee value chain are optimistic about sustaining this growth. Continued efforts to improve quality, expand production, and tap into high-value markets will be crucial in capitalizing on the growing global demand for coffee.
“With Uganda’s coffee exports achieving such significant milestones, the sector remains pivotal in shaping the country’s economic trajectory, driving growth, and ensuring sustainable development,” the report adds.
Electricity Regulatory Authority (ERA) boss Ziria Tibalwa Waako, has predicted a potential 10% reduction in electricity tariffs when the Uganda Electricity Distribution Company Ltd (UEDCL) eventually takes over of the electricity distribution network from Umeme Ltd.
Speaking during a media engagement on the transition and its implications for tariffs, Waako emphasized the financial benefits of the government-led model.
“If government provides the capital for the Uganda Electricity Distribution Company, as I’ve shared, it comes in at a low cost of financing below 8% – somewhere between 4% and 8%,” she stated.
“Naturally, the tariff would reduce by approximately 10%, depending on the exact terms. However, should government not provide the capital for UEDCL, it means UEDCL will have to borrow. If this borrowing isn’t concessional, we’ll revert to private financing within the distribution network.”
UEDCL has officially been handed the electricity distribution license, positioning it to replace Umeme come April 1, 2025, with Umeme’s 20-year concession ending on March 32. It expects lower operational costs and tariffs by taking control of the distribution network.
According to Waako, private financing under Umeme’s concession attracted a 20% return on investment, significantly driving up costs.
“Currently, the cost of financing in the distribution segment is borne by Umeme's shareholders through a mix of equity and debt,” she explained. “Every capital investment in the distribution network has been earning a 20% return. This model has increased costs passed on to consumers.”
She further highlighted the government’s strategy to prioritize concessional funding. “The information we have is that government will finance the capital investments within the distribution network at a low cost of financing. With concessional rates below 8%, the cost of financing will be cut by more than half, translating directly into lower tariffs for end users,” she added.
While consumers remain pensive ahead of the looming transition, UEDCL’s re-entry into the distribution sector marks a pivotal shift in Uganda’s electricity landscape.
The Ministry of Finance, Planning, and Economic Development has committed to ensuring a seamless transition by funding UEDCL operations and settling Umeme’s outstanding investments, though the sources of the funds remain unknown.
The Office of the Auditor General is currently determining the buyout amount as per the Lease and Assignment Agreement. “The Ministry of Finance has pledged to provide the buyout funds on time to avoid any disruption in service delivery,” Waako noted.
The transition is also expected to preserve jobs within the sector, according to the regulator. “In previous transitions, over 98% of staff were retained by the government utilities,” Waako remarked, expressing confidence in a smooth handover process.
UEDCL’s return to managing the distribution network aligns with the government’s broader strategy to make electricity more affordable and accessible.
With current electricity tariffs among the highest in the region, this change is expected to ease the financial burden on consumers while improving service delivery.
By leveraging concessional financing and reducing reliance on expensive private capital, the government is poised to achieve a sustainable and cost-effective energy sector.
According to ERA, the transition also represents a significant opportunity for Uganda to redefine its energy infrastructure and prioritize affordability. The reduction in tariffs by approximately 10% is anticipated to not only spur economic growth but also enhance the quality of life for millions of Ugandans.
DOB Equity, an investment fund based in Kenya, has announced that it will provide funding to Spouts International, a company enabling access to clean water through its locally-manufactured ceramic water filters under the brand name Purifaaya.
DOB Equity is an impact investment fund dedicated to empowering transformative businesses across East Africa. With a renewed focus on sustainable food systems, energy and water and sanitation services, DOB Equity supports innovative enterprises that deliver measurable social, environmental, and economic impact.
In a recent press release, the company said the investment in Spouts aligns with their renewed focus on sustainable water solutions, as part of its broader strategy supporting sustainable food systems, energy and water and sanitation services across East Africa.
“This funding will enable Spouts to scale its manufacturing capacity, strengthen distribution networks, and expand its reach across East Africa,” it said, adding that since its inception, the company has distributed close to 300,000 filters, benefiting close to two million people while eliminating over 1.5 million tons of carbon emissions.
The Purifaaya water filters, made from locally sourced materials, use advanced ceramic filtration technology and are designed to be simple and accessible for everyday use. The filters supplied by Spouts offer a safe, affordable and eco-friendly solution for clean drinking water, eliminating the need for traditional boiling methods that are harmful to the environment.
By eliminating the need to boil water, they address critical health and environmental challenges, including; indoor air pollution caused by firewood or charcoal used for boiling water, deforestation from the unsustainable harvesting of wood for fuel, high carbon emissions from traditional boiling methods.
By enabling communities to reduce their carbon footprint, Spouts is able to provide high quality, verified carbon credits, which, together with commercial filter sales, transforms the way clean water is accessed in underserved communities.
“Spouts marks our first investment under DOB Equity’s new strategy, falling specifically under our “Water” Pillar. Spouts fully aligns with our mission to support scalable, local innovations that have clear social impact to the underserved and supports these communities to better adapt to the negative impacts of climate change, said Karen Serem Waithaka, the DOB CEO.
“We are glad to have found a company in the water sector that not only achieves significant impact by providing clean drinking water but also demonstrates financial viability through its innovative business model.”
She added: “With less than 25% of East Africa’s population having access to reliable safe drinking water, the need for solutions like Purifaaya filters is urgent. By addressing both health and environmental issues, Spouts is driving transformative change in the region and setting a benchmark for sustainable impact.”
Daniel Yin, the Spouts CEO, expressed excited to work together with DOB Equity in Spouts’ next phase of growth and impact. “DOB and Spouts’ missions were aligned since the early stages and we are looking forward to providing millions of additional families with long-term access to safe drinking water, together,” he added.
Spouts has caused a stir in both Uganda and Rwanda in recent years thanks to its innovative and affordable products. Recently, the company marked a huge step forward in their mission for providing safe water access to five million households across Africa by 20303.
Incofin Investment Managers committed EUR 3 million to support SPOUTS through the Water Access Acceleration Fund, empowering the ceramic water filters to reach even more underserved communities.
Currently, the DOB’s diverse portfolio includes 25 high-impact companies driving sustainable growth and resilience in the region. Beyond providing financing options such as equity and equity-like instruments, DOB Equity offers access to networks, governance and strategic guidance, enabling local entrepreneurs to scale their businesses and maximize their impact.
Officials said this funding would enable SPOUTS to scale its operations across East Africa, expand its manufacturing capacity, and strengthen its distribution networks.
Flynas, a popular Saudi Arabian low-cost airline, has inaugurated its flights from Riyadh to Entebbe International Airport.
The airline’s Airbus 320 NEO received a water cannon welcome salute at Entebbe to mark the occasion, and is scheduled to have three weekly flights on Monday, Thursday, and Saturday.
Formerly National Air Services (NAS Air), the company changed its name from Nas Air to Flynas in November 2013 and has since grown to become one of the Middle East’s leading low-cost carriers, operating a fleet of 61 aircraft to over 70 destinations worldwide.
The airline, which has consistently been ranked among the best low-cost carriers globally, is potentially set to give Uganda Airlines a good run for its money on the lucrative route.
But according to Uganda Civil Aviation Authority, the coming of Flynas is a crucial development for both Uganda’s tourism and trade sectors. The direct connection is expected to foster significant growth in tourism, particularly eco-tourism and adventure travel, while also providing Ugandan businesses with better access to the Saudi market.
“This new flight route marks a significant milestone for Uganda’s tourism sector,” Vianney Luggya, the spokesperson for the Uganda Civil Aviation Authority (UCAA), told this publication.
“With Flynas offering affordable travel options, we expect to see a substantial increase in the number of Middle Eastern tourists visiting Uganda’s renowned attractions, such as the mountain gorillas and our pristine national parks.”
The Middle East, particularly Saudi Arabia, has seen growing interest in adventure and eco-tourism, which Uganda excels in. This new air link would allow Middle Eastern tourists easier and more affordable access to Uganda’s national parks, safaris, and cultural heritage sites.
The UCAA projects that the new route could increase tourist arrivals from the Middle East by at least 10% within the first year of operations.
Also, Saudi Arabia has in recent years become a major destination for Ugandans seeking jobs. According to official estimates, around 165,000 Ugandans are working in temporary employment contracts in Saudi Arabia and other Gulf states, primarily as domestic workers, with hundreds more preparing to go.
Also, the airline would cash in from the annual pilgrimage to Mecca as Uganda is one of the leading senders of pilgrims on the annual hijja.
In addition to tourism, the introduction of direct flights between Riyadh and Entebbe holds considerable promise for expanding trade between Uganda and Saudi Arabia. Saudi Arabia is already one of Uganda’s key trade partners, with bilateral trade valued at over $230 million in recent years. Uganda’s major exports to Saudi Arabia include agricultural products such as coffee, tea, and flowers, as well as minerals and other natural resources.
“The direct flight service between Riyadh and Entebbe will make it much easier for Ugandan businesses to access the Saudi market,” said Luggya. “This enhanced connectivity is expected to facilitate trade, particularly in Uganda’s export sectors, including coffee, flowers, and fresh produce. We are also optimistic that it will lead to new investment opportunities between our two countries, further strengthening our economic ties.”
Flynas is one of the most profitable airlines in the Middle East, and reported a revenues surge of 46% for the first half of 2023 compared to the same period of the last year, as passenger numbers increased 26% to about 5 million passengers.
The success of flynas has been recognized with many international awards, including Skytrax International Award as the Best Low-cost Airline in the Middle East in 2023 for the sixth time in a row and the 4th Best LCC worldwide.
Through its ambitious National Civil Aviation Strategy, the Kingdom of Saudi Arabia has set its target at supporting its airlines to connect the country to 250 International destinations and to fly some 330 million passengers, including 150 million tourists annually by 2030.
Standing at UG 96.1 trillion ($25.3 billion) as of June 2023, Uganda’s debt burden is approximately 52% of the country’s GDP. This debt comprises UGX 44.6 trillion in domestic debt and UGX 52.8 trillion in foreign debt. In his latest annual report, the Auditor General highlights the growing challenge, and more so given that an additional UGX 7 trillion in loans awaits approval from Parliament.
Analysts argue that this surge in debt, combined with rising servicing costs, stagnating domestic tax revenues, and dwindling export revenues, potentially places Uganda in significant debt distress, raising the specter of a full-blown debt crisis.
The most immediate concern is the mounting cost of servicing Uganda's debt. As of December 2023, interest payments on loans consumed a substantial portion of the budget. According to the Bank of Uganda, 32% of every UGX100 collected in taxes goes towards servicing this debt, and projections suggest that external debt servicing could account for 35% of GDP in 2024/2025.
Several factors are contributing to Uganda’s rising debt burden. These include the shift in government spending towards infrastructure projects and the impact of the COVID-19 pandemic, which forced the government to borrow extensively to support its economy during the crisis.
In 2018/2019, prior to the pandemic, Uganda's public debt stood at 34.6% of GDP then surged to 50.6% in 2021/22, and projections for 2023/2024 suggest it will surpass 53%, well above the International Monetary Fund’s (IMF) recommended threshold of 50% for low-income countries.
The Uganda Debt Network (UDN), a civil society organization focused on promoting sound public debt management, has raised alarms over the growing debt crisis. "The government’s reliance on expensive non-concessional loans, combined with declining aid and revenue shortfalls, means that Uganda's fiscal position is becoming more precarious by the day," it notes.
“As the government diverts more and more resources to debt servicing, vital sectors like education, health, and infrastructure are being starved of funds. This is leading to a slowdown in development progress, as the country struggles to balance debt servicing and development needs."
Dr. Fred Muhumuza, an economist at Makerere University and a leading expert on public finance, has been vocal about the need for urgent reforms in Uganda's debt management practices.
Dr. Muhumuza argues that the country's current debt trajectory is unsustainable, noting, "Uganda cannot continue to borrow at this rate without severely compromising future growth and development. The government must focus on reducing borrowing and improving revenue generation to break this cycle."
He has also highlighted the importance of tax administration reforms as a key solution. "The Ugandan tax system is one of the least efficient in the region. There is a need for comprehensive tax reforms that widen the tax base and increase compliance," he explained.
Dr. Muhumuza further emphasized that the government must prioritize investments that provide the highest returns, adding, "Borrowing for infrastructure projects that do not generate sufficient economic returns is a dangerous path. There must be a clear assessment of the economic impact of each borrowing decision."
In addition to the above-mentioned factors, Uganda has also faced a sharp reduction in aid and development support following the controversial passage of the Anti-Homosexuality Act in 2023. Foreign aid fell from UGX2.781 trillion to just UGX28.94 billion, forcing the government to borrow even more to plug the gap.
The experts warn that the growing debt burden has several negative implications for Uganda’s economy and social services. The country faces the risk of a sovereign default if current trends are not addressed.
High debt levels stifle economic growth, discourage both public and private investment, and divert critical resources away from essential services. This includes vital sectors such as infrastructure, labor productivity, human capital, and public health, which are crucial for long-term development.
A sluggish tax revenue administration system only exacerbates the problem, exposing the government to greater vulnerability in servicing its debts. If domestic revenues continue to stagnate, Uganda could find itself in an even worse fiscal position, with debt levels exceeding the current 52% of GDP, the experts warn.
That’s why Dr. Muhumuza stresses the importance of managing domestic debt carefully. "While foreign debt is a significant issue, domestic debt has also become a critical concern, especially with high interest rates. The government must balance its domestic borrowing to avoid crowding out private sector investment and ensure long-term financial stability," he says.
President Yoweri Kaguta Museveni has extended a call to global investors, particularly those in the United Arab Emirates (UAE), to seize lucrative opportunities in Uganda by investing in the country.
A press release said while addressing the 4th edition of Abu Dhabi Sustainability Week (ADSW) 2025 at the Abu Dhabi National Exhibition Centre (ADNEC), Museveni emphasized Uganda’s untapped potential in agriculture, minerals, and value-added production as pivotal sectors for investment.
“Uganda offers an Internal Rate of Return (IRR) of 14.1%, making it a prime destination for profitable investments,” Museveni stated. “With the right partners, we aim to accelerate our transition from a lower-middle-income country to a high-middle-income economy and, eventually, to a first-world country.”
Museveni outlined key areas ripe for value addition, including: • Agriculture: Coffee, bananas, fruits, cassava, maize, tea, dairy, beef, poultry, and fish. • Minerals: Rare earth elements, gold, and iron ore. • Forestry: Timber and forest-based products.
He noted that these resources remain underexploited and could drive Uganda’s economic transformation if adequately tapped. The President emphasized that with Africa’s population projected to reach 2.5 billion by 2050, investors have access to a vast and growing market.
President Museveni assured investors of Uganda’s market potential, supported by a population of 46 million and bolstered by the East African Community (EAC), which comprises 300 million consumers. “Already, Uganda has a surplus in various products. Our strategic location and regional partnerships ensure that any investment here benefits from a vast and integrated market,” he added.
Additionally, Uganda’s progressive policies have laid the groundwork for long-term growth. For instance, the country’s recent reclassification as a lower-middle-income economy underscores its economic strides, with GDP growth averaging 6% annually.
The Abu Dhabi Sustainability Week, themed “The Nexus of Next: Supercharging Sustainable Progress,” serves as a global platform to address pressing sustainability challenges. Museveni’s address, titled “Transforming Uganda in a Rising East Africa,” resonated with the event’s focus on fostering inclusive economic, social, and environmental progress.
Museveni commended UAE President Sheikh Zayed bin Sultan Al Nahyan for his visionary leadership and hospitality, emphasizing the importance of partnerships in achieving shared prosperity. He reiterated that Africa’s growth trajectory is now unstoppable, provided leaders avoid ideological and strategic missteps that could generate conflict.
“With the adoption of correct policies and by avoiding unnecessary philosophical and strategic mistakes, Africa’s rise to global affluence is inevitable,” Museveni said. He highlighted Uganda’s focus on win-win solutions and urged international investors to partner with Africa in addressing global challenges.
Key Ugandan officials accompanying the President included Attorney General Kiryowa Kiwanuka, Finance Permanent Secretary Ramadhan Goobi, Health Permanent Secretary Dr. Diana Atwine, and Foreign Affairs Permanent Secretary Vincent Bagiire. Their presence underscored Uganda’s commitment to fostering robust partnerships and advancing sustainable development goals.
President Museveni’s invitation to investors aligns with Uganda’s broader vision to leverage its resources for accelerated growth. With its strategic location, abundant resources, and investor-friendly policies, Uganda is positioning itself as a hub for regional and global trade. For investors seeking high returns and sustainable opportunities, Uganda stands as a gateway to Africa’s prosperous future.
President Museveni has been in Abu Dhabi for the Sustainability Week 2025. This is an abridged version of his speech at the event.
Uganda has got a population of 46 million People and is part of the East African Community with a combined population of 300 million People, all of whom are part of the CFTA (Continental Free Trade Area) of Africa, with a combined population of 1.4 bn People. Until 1900, Uganda was part of Africa that had had limited direct linkages with outsiders.
In the 70 years the British were in Uganda, typical of the Colonies, they created a small enclave economy of the 3Cs and 3Ts. Enclave economy, meant a small island of money economy, surrounded by a sea of under-development and moneylessness. The 3Cs were: coffee, cotton and copper and the 3Ts were: tea, tobacco and tourism. By 1962, Independence time, only 9% of the homesteads were in this small money economy.
Owing to the wrong politics of the political actors, Uganda soon entered a period of crisis. In 1971, an illiterate Colonial Sergeant, Idi Amin, came into power. He ruined the small enclave economy by making many mistakes including the expulsion of our immigrant Asian Community of 80,000 that had been a part of the entrepreneurial class.
By 1986, only Coffee of the 3Cs was surviving and only tobacco of the 3Ts was still kicking. Since that time, we have gone through 5 phases as follows: 1. Bring back part of the small ‘Island’ of the 3Cs and 3Ts; 2. Expand the ‘Island’ – more coffee, more tea, more tourism, etc. 3. Diversify the economy by commercializing new products such as fruits, bananas, fish, dairy products, beef, sugar, cassava, leather, wood-products, etc. 4. Add value to some of the raw-materials - such as textiles, dairy products, sugar - to produce finished products. 5. Enter the knowledge economy by producing products of the intellect such as auto-mobiles, vaccines, etc.
However, to go into the five phases, apart from peace, you need infrastructure and a skilled and healthy population. We have, therefore, invested in electricity generation, roads constructions, building schools and health centres. These modest efforts, have seen the economy grow from a miserable USD 4bn in 1986 to now USD 55bn by the foreign exchange rate method or USD 168.5bn by the PPP method. We are not satisfied with this.
Much of this USD 55bn is raw-materials. By merely adding value to a spectrum of these raw-materials – coffee, cereals, minerals, etc - we intend to grow the economy to USD 500bn in the coming few years. We, therefore, invite investors from the World to help us do this rapid transformation of our economy and society as they also benefit because the IRR in Uganda is 14.1%.
Uganda is now classified as a lower middle-income Country. It will, however, rapidly grow into a high middle- income Country and, eventually, into a first World Country. To achieve these goals, as already stated, we need to add value to the large spectrum of our agricultural raw-materials (coffee, bananas, fruits, cotton, oil seeds, cassava, maize, tea, dairy, beef, poultry products, fish, forest products, sugar, etc) and mineral raw-materials (gold, iron-ore, phosphates, lithium, uranium, petroleum, gas, etc).
The efforts of value addition to raw-materials are part of sector two of the economy- manufacturing. The other sectors are: commercial agriculture that will generate some of the required raw-materials; services (tourism, hospitality, transport, professional services, etc); and ICT.
I salute our African brothers and sisters in East Africa and in the whole continent. With clear vision, we agreed that when you produce a good or a service, you need to sell. The more you sell, the better for our prosperity. The internal market of Uganda of 46 million people, is not enough to support large scale sustained production of goods and services, especially when their purchasing power is still low. Already, Uganda has surplus of many products: maize, milk, beef, bananas, steel products, cement, tubes and tyres, textiles, cassava products, etc.
How would the Ugandan economy grow if we did not have the East African market, the COMESA market and the wider African market? I would like, therefore, to assure investors from outside Africa, that the Africans, have already laid down a lucrative market. When you invest in Uganda or any of the brother African Countries, you have the assurance of this huge and growing market.
The population of Africa will be 2.5 billion people in the next 25 years. The population of Uganda, will be 106 million People by that time. The growth of Africa is now unstoppable. Future leadership in prosperity belongs to Africa without a doubt as long as we are acting right.
The Auditor General’s report for the year ending 2024 has unveiled alarming financial irregularities in the management of pension and gratuity benefits, revealing over UGX 20 billion in overpayments to beneficiaries.
The findings, submitted to Parliament by Auditor General Edward Akol on January 15, underscore serious lapses in the oversight and management of public funds.
According to the report, 1,502 pensioners were overpaid gratuity benefits totalling UGX11.4 billion, while 2,193 pensioners received excess pension benefits amounting to about UGX 9 billion.
These overpayments occurred across 19 ministries, departments, and agencies (MDAs) and 115 local governments (LGs) for gratuity, and 23 MDAs and 104 Local Governments for pensions.
“I noted that 1,502 pensioners/beneficiaries were overpaid gratuity benefits of UGX 11.393 billion. These overpayments were in 19 MDAs and 115 LGs. This amount is recoverable. I noted that 2,193 pensioners/beneficiaries were overpaid pension benefits of UGX 8.98 billion in 23 MDAs and 104 LGs. This amount is also recoverable,” the report says in part.
The special audit, commissioned by Finance Minister Matia Kasaija, aimed at assessing the effectiveness of pension and gratuity management processes, validate 72,285 pensioners on the government payroll, and recommend corrective measures.
Covering the financial years from 2019/20 to 2023/24, the audit validated 72,206 pensioners, of whom 61,199 (84.8%) were fully verified, 756 (1%) were not verified, and 10,251 (14.2%) failed to show up for validation.
The audit also revealed that 4,538 individuals had not accessed the pension payroll by June 2024, with 4,057 verified and included in the pension estimates, while 481 remained unverified.
The AG recalculated the pension and gratuity estimates for the financial year 2024/25 to UGX974.6 billion.
This figure includes; Pension and gratuity arrears (UGX 74.2 billion); Non-traditional pensioners’ benefits (UGX 33.7 billion) and Expected retirees for the fiscal year 2024/25.
To meet these obligations, the Government will require an additional UGX 43 billion beyond the total revised budget of UGX 931 billion for the 2023/24 financial year.
The Auditor General’s investigation also uncovered irregularities in the allocation of supplementary funding for pensions and gratuities.
A total of UGX 382 billion was disbursed to 185 entities, including eight MDAs (UGX 16 billion) and 177 LGs (UGX 366 billion), without formal requests from accounting officers as mandated by Regulation 18 (2) of the Public Finance Management Regulations (PFMR) 2016.
“Although the Ministry of Finance, Planning, and Economic Development (MoFPED) provided the schedules of requests for the supplementary budget, they were not reconciled with the actual amounts received by the respective MDAs and LGs,” the report noted.
The Auditor General called for stricter compliance with financial management regulations, advising the Permanent Secretary/Secretary to the Treasury to ensure that all supplementary funding requests are formally submitted by accounting officers. This measure aims to enhance accountability and internal controls over public funds.
It is not clear what measures Parliament would recommend to recover the UGX20 billion. However, the report will be forwarded to the Parliament Accounts Committee for investigations to find out who should be held accountable.
Uganda’s Minister of Agriculture, Animal Industry, and Fisheries, Hon. Frank Tumwebaze, has called for swift and decisive action to transform Africa’s agricultural sector from its current state of underdevelopment to a global leader in food production.
Speaking at the opening session of agriculture ministers during the African Union (AU) Extraordinary Summit on the Comprehensive Africa Agriculture Development Programme (CAADP) Strategy and Action Plan 2026–2035, Tumwebaze emphasized the importance of moving from planning to execution under the new Kampala CAADP Agenda.
“2025 will be a defining year for the future of Africa’s agricultural sector. If we are to meet the targets of Africa’s Agenda 2063, we must be in full implementation mode now,” Tumwebaze said at the event held at Speke Resort Munyonyo.
According to Food and Agriculture Organization (FAO) - Africa’s Agricultural Potential, Africa possesses 65% of the world’s uncultivated arable land, abundant water resources, favourable climates, and rich soils.
These resources position the continent to become a global agricultural powerhouse. Despite these advantages, however, Africa remains a net importer of food, with imports valued at $100 billion annually.
Over 60% of Africa’s workforce is engaged in agriculture, yet productivity remains low. The continent accounts for 280 million people facing chronic hunger, with food systems unable to meet the demands of rapid population growth.
Africa’s agricultural exports are dominated by raw materials like coffee, cocoa, and tea, leaving significant value addition untapped. Annual post-harvest losses across Africa are estimated at $48 billion, significantly reducing food security. Fertilizer use in Africa averages 17 kilograms per hectare, compared to the global average of 135 kilograms per hectare, leading to low crop yields.
Tumwebaze highlighted the importance of regional initiatives to enhance agricultural development. He pointed to the agreement during the 2021 Specialized Technical Committee (STC) session to establish five Regional Animal Resource Seed Centers of Excellence.
“Uganda was privileged to host one of the centers under the National Animal Genetic Resources Centre and Data Bank (NAGRC & DB). However, to operationalize the centers, participating countries must conclude Memoranda of Understanding (MOUs). We need to expedite this process, particularly in regions like Eastern Africa where this remains outstanding,” Tumwebaze added.
Uganda’s Prime Minister, Rt. Hon. Robinah Nabbanja, added her voice to the summit, laying out key recommendations for Africa to unlock its agricultural potential:
Prioritize Food Security: Governments must integrate food security and nutrition into their national policies to address chronic hunger.
Invest in Productivity: “We must invest in improved seeds, livestock, and innovative farming techniques to boost productivity,” Nabbanja said. “Irrigation and mechanization are critical to mitigating climate change and enhancing production.”
Value Addition: Nabbanja stressed the need to stop exporting raw materials. “Africa must export finished, branded products that add value,” she urged.
Leverage Trade Agreements: The Prime Minister called for removing trade barriers and taking full advantage of the African Continental Free Trade Area (AfCFTA). “AfCFTA offers a unique opportunity to promote regional and national development,” she noted.
The summit’s key objective was to finalize the CAADP Strategy and Action Plan 2026–2035, also known as the Kampala CAADP Agenda. This strategy aligns with the AU’s Agenda 2063, which envisions a prosperous and food-secure Africa.
Agriculture ministers, development partners, and regional representatives at the summit are expected to adopt the agenda, signaling a unified commitment to accelerating agricultural development. The outcomes will be presented to the AU Assembly of Heads of State and Government for endorsement.
Uganda is poised to strengthen its trade ties with Algeria, leveraging its agricultural production to meet growing demand in North Africa. During a high-level meeting between President Yoweri Kaguta Museveni and Algeria’s Minister of Agriculture and Rural Development, Youcef Cherfa, discussions focused on boosting exports of coffee and milk while exploring imports of Algerian products, signalling a new chapter in Uganda-Algeria economic relations.
A press release from State House said the meeting took place on the side-lines of the African Union Extraordinary Summit on the Comprehensive Africa Agriculture Development Programme (CAADP) at Speke Resort Munyonyo recently.
Highlighting recent trade developments, Cherfa revealed that Algeria has begun importing Ugandan coffee. “The last contract, signed at the end of 2024, secured 800 tonnes, with the first shipment expected in February 2025. We are prepared to import 20,000 tonnes annually moving forward,” Cherfa stated.
Uganda exported approximately 6.5 million 60-kg bags of coffee in the 2023/24 financial year, earning USD 850 million, and Algeria’s interest is expected to contribute significantly to further growth.
The milk trade, however, has lagged behind despite Algeria’s willingness to import though Algeria is a major importer of dairy products, importing over USD 1 billion worth annually, making this a significant missed opportunity for Ugandan producers.
On the other hand, Uganda is looking to expand its imports from Algeria, particularly of agricultural machinery, fertilizers, and processed food products. Algeria, a significant producer of these goods, offers competitive pricing that aligns with Uganda’s efforts to modernize its agricultural sector. The potential for increased trade in these areas underscores the mutual benefits of closer economic ties.
To resolve milk trade challenges, the Algerian government has pledged to enhance communication and provide guidance to Ugandan companies. “We will consult again and notify Ugandan companies to ensure they understand the process, as instructed by President Tebboune,” Cherfa added.
President Museveni assured the Algerians that the milk trade concerns would be addressed. “I will follow up with the Ugandan milk companies to understand why they did not respond,” he said. He emphasized Uganda’s commitment to strengthening its trade relationship with Algeria and increasing the volume of exports to diversify markets for Ugandan products.
“We fought for freedom, and we must ensure that it translates into peace, prosperity, and democracy for all Africans,” Museveni added, underlining the importance of economic partnerships in fostering continental development.
With Algeria committing to importing 20,000 tonnes of Ugandan coffee annually and working to overcome milk trade barriers, the bilateral relationship between the two nations is set to grow stronger.
On the other hand, Uganda’s potential imports of fertilizers and agricultural machinery from Algeria promise to enhance its agricultural productivity.
The discussions also highlighted the broader vision for Africa’s unity and development, with President Museveni reaffirming his commitment to both trade growth and peacebuilding efforts across the continent.
Because of the nature of his business, Moses Wambede always wanted a phone that could access high-speed internet but he didn’t have enough cash. A friend advised him to buy a good phone on loan through asset financing. But on doing the calculations, he found out that the phone costing about UGX1 million with cash would cost about UGX300,000 more because of the interest. He almost thought of opting out of the deal.
His friend however, encouraged him to buy the phone and pay it off over a period of six months. To his surprise, the new phone enabled him to make enough money to pay off the loan within the stipulated time and now he is the proud owner of a high-end Samsung phone that could last a number of years.
Uganda’s digital revolution is gaining momentum, thanks to affordable asset financing for smart devices that is making 4G and 5G connectivity accessible to millions of citizens.
By removing the cost barriers associated with owning 4G and 5G-enabled smartphones, asset financing companies are empowering Ugandans to participate in the rapidly growing digital economy.
While mobile network operators have expanded 4G coverage to most urban and peri-urban areas and early investments in 5G networks are being rolled out, the high cost of compatible smartphones has remained a significant obstacle for many Ugandans.
With a large portion of the population still relying on 2G and 3G devices, the potential of high-speed internet remains largely untapped, according to Dr. Chris Baryomunsi, Minister for ICT and National Guidance.
“We have made significant strides in embracing technology, and I am confident Ugandans recognize the progress we have made compared to ten years ago. We have improved connectivity and extended internet access to many parts of the country, but challenges like the high cost of smart devices—smartphones, tablets, and laptops—continue to limit access for certain segments of society,” he says.
Recognizing this challenge, a number of fintech startups, such as Watu Uganda, have introduced innovative asset financing solutions that enable customers to purchase 4G and 5G-enabled smartphones on credit. These financing models require a small initial deposit, with the balance paid in installments over several months, making advanced devices more accessible to a wider audience.
“Affordable financing is a game-changer for digital inclusion in Uganda. By offering flexible payment options, we are enabling more Ugandans to access the tools they need to connect, innovate, and thrive. We are helping the country to drive the 4G and 5G adoption agenda,” said Christian Kamukama, Head of Commercial at Watu Uganda.
Kamukama explained that affordable smartphones are transforming how Ugandans work, learn, and access vital services. For entrepreneurs and small businesses, he highlighted how high-speed connectivity allows them to conduct e-commerce, engage with customers online, and access global markets. Students are benefiting from online learning resources, while farmers are able to access real- time weather data and market prices through mobile applications.
He emphasized that these devices, available through low-interest financing, make quality technology accessible even to low-income earners.
Asset financing enables consumers to acquire high-end smartphones that are compatible with 4G and 5G networks. As more Ugandans adopt these devices, Kamukama said mobile operators are encouraged to expand their 4G and 5G infrastructure countrywide to meet the rising demand for high-speed connectivity.
He noted that beyond urban centers, asset financing programs are making their way into rural and underserved communities, where smartphone penetration and digital literacy have traditionally been low. This growing access to mobile technology is essential for fostering digital inclusion across the country.
Despite the progress, Allan Mukalazi, an economist, said challenges such as limited smartphone awareness, concerns about debt, and inconsistent electricity or network coverage remain barriers for some potential users, particularly in rural areas.
“These factors make it difficult for residents in some regions to fully utilize their devices, limiting the potential of digital connectivity,” he said.
He said nevertheless, affordable asset financing for smart devices is laying the foundation for a more digitally inclusive Uganda. With greater access to high-speed internet, Mukalazi said Ugandans are better equipped to seize online opportunities in areas such as education, business, and entertainment.
The Government of Uganda, through the Electricity Regulatory Authority (ERA), has announced a reduction in electricity end-user tariffs for the first quarter of 2025. The move, according to ERA Chief Executive Officer Ziria Tibalwa Waako, aims to make electricity more affordable for consumers while maintaining the long-term viability of the energy sector.
Under the new tariff, domestic consumers will pay UGX 775.05 per unit, a reduction from the previous UGX 796.05.
In a press briefing held at the Media Centre in Kampala, Waako emphasized the importance of balancing affordability and sector sustainability. “Electricity is a critical driver for industrialization and household comfort. This tariff reduction reflects our commitment to making energy accessible without compromising the financial health of the sector,” she said.
The new tariffs are part of a broader strategy by the government to increase electricity access and lower costs for critical public resources, such as schools, hospitals, and government institutions. Energy Minister Ruth Nankabirwa highlighted the cautious approach taken to ensure sustainability.
“This is aimed at making electricity more affordable to critical public resources, and I hope they will now be able to pay us timely. However, any reduction in tariffs must be gradual to ensure the sector remains functional,” Nankabirwa noted. She stressed the need to maintain tariffs at levels that support production and operational costs. “You can’t just reduce tariffs drastically and expect the sector to remain functional because the tariff is used to maintain production. So there are parameters that must be followed,” she added.
ERA Board Chairman Wasagali pointed to easing economic determinants as key contributors to the tariff adjustments. “The factors driving the reductions include declining inflation, a stable foreign exchange rate, and increased generation capacity. These are creating an environment where tariff sustainability can be achieved,” he explained.
In addition to relatively lower fuel prices, inflation has remained under control at about 3%, lower than the medium-term target of 5%, while the exchange rate currently stands at UGX3,693 to the Dollar, down from UGX3,907 in March last year.
Several other factors are expected to sustain further tariff reductions in the future. Uganda’s installed generation capacity, currently at 2,050 megawatts, is approximately double the country’s demand. The ongoing commissioning of new plants like Karuma Hydropower Dam and the integration of the West Nile region into the national grid are also anticipated to enhance capacity and lower production costs.
The officials further anticipated that the handover of Umeme’s operations to the Uganda Electricity Distribution Company Limited (UEDCL) would usher in a new tariff structure by April 2025. Minister Nankabirwa suggested this change could further lower tariffs, stating, “The high tariffs have always been blamed on high investment costs by private sector licensees. A re-based tariff regime will reflect UEDCL’s operational efficiencies and expanded distribution network.”
Furthermore, the renewal of the corporate income tax waiver for Bujagali Energy Ltd in June 2025 will significantly impact operational costs and pricing.
Furthermore, the renewal of the corporate income tax waiver for Bujagali Energy Ltd in June 2025 will significantly impact operational costs and pricing.
While consumers would welcome the tariff reductions, gradual reductions must ensure the sector's financial stability to avoid interruptions in power supply in future.
As Uganda navigates these changes, sustainability remains the cornerstone of the government’s efforts to balance affordability and the growth of the energy sector. Whether this approach succeeds would depend on disciplined implementation and continuous monitoring of the key parameters driving the electricity market.
Under the new tariff plan, commercial consumers will benefit from a new average rate of UGX 575.02 per unit, down from UGX 599.09. The medium industrial consumers have seen tariffs adjusted further, with the industrial sub-category paying UGX 417.08 per unit and the services sub-category paying UGX 434.05 per unit.
For large industrial consumers, the category has been divided into two sub-categories: • Manufacturing, which will now pay UGX 351.05 per unit • Services, which will pay UGX 367.01 per unit.
According to the National Population and Housing Census (NPHC) 2024 final report, only 24% of Ugandan households have an income-generating business enterprise, while 76% rely on wages or subsistence farming.
The report noted: “Three in every four households (74.5%) in the subsistence economy primarily relied on subsistence farming. Fifteen percent earned wages or salaries, while 10.4% were mainly involved in income-generating activities.”
This disparity is more pronounced in rural areas like Karamoja sub-region, where 72% of households are in the subsistence economy, compared to Kampala Capital City, which has the lowest proportion at 1.7%.
The report’s findings underscore several challenges tied to the limited prevalence of income-generating business enterprises.
Sole dependence on salary and wages is said to have several disadvantages. Firstly, wage earners often lack job security and can be easily replaced, especially in low-skilled jobs. This makes it difficult to plan for the future and can lead to financial instability.
Also, many wage-earning jobs pay low wages, making it difficult to afford basic necessities like housing, food, and healthcare. This can lead to poverty and financial hardship. Additionally, wages are often determined by employers, leaving little room for negotiation or control over income. This can make it difficult to increase income or improve financial security.
According to experts, with only 24.1% of households engaged in business enterprises, Uganda risks missing out on the transformative power of entrepreneurship. Small and medium enterprises (SMEs) are critical to job creation and economic growth, yet the report shows a lack of sufficient engagement.
This highlights the unequal distribution of economic opportunities, with rural areas facing greater barriers to monetization of their economies.
The report also sheds light on the saving habits of Ugandans, which has a direct impact on investing: “Among the household population aged 16 and above, 46.3% of savers used mobile money, 39.6% kept cash at home or in a secret hiding, and 28.9% used saving groups.”
Only 2% used credit institutions for saving, which may limit access to capital needed for starting or expanding businesses.
The continued reliance on subsistence farming by 74.5% of households in the subsistence economy reinforces poverty. Without diversification into business enterprises, many families remain trapped in a cycle of low productivity and limited financial resilience.
The NPHC 2024 report offers critical recommendations to address these challenges:
First, promote Agricultural Commercialization: “The significantly higher proportion of households (33.1%) still in the subsistence economy suggests that the country should continue to prioritize interventions for commercialization of agriculture and full monetization of the economy.” This would improve incomes and enable more households to transition into the money economy.
Second, strengthen Social Safety Nets: “There is need to design and implement comprehensive social safety nets and cash transfer programs aimed at households living below the poverty line.” Such programs would provide immediate financial relief and support long-term resilience for vulnerable populations.
Lastly, enhance Regional Economic Inclusion: “Affirmative action may be required for Karamoja that accounted for the highest proportion (71%) of households in the subsistence economy.” Tailored interventions can help bridge regional economic disparities and promote equitable development.
According to the report, with only 24.1% of households running income-generating enterprises, Uganda faces challenges in achieving sustainable economic growth. The NPHC 2024 findings emphasize the need for targeted strategies to transition households from subsistence to market economies. By addressing these gaps, Uganda can unlock the potential of its entrepreneurial sector, reduce poverty, and drive inclusive economic progress.
BRICS, the Global South-led forum for economic cooperation, continues to grow in influence, as it seeks to de-dollarize and transform the international monetary and financial system.
After admitting four new members in 2024, BRICS officially welcomed nine new nations as partner countries on January 1, 2025, including Uganda, Belarus, Bolivia, and Cuba. The others are; Indonesia, Kazakhstan, Malaysia, Thailand and Uzbekistan.
With its nine members and nine partners, BRICS now makes up roughly half of the global population and more than 41% of world GDP (PPP). The group is an economic powerhouse, including top producers of key commodities like oil, gas, grains, meat, and minerals.
At the BRICS summit in Kazan, Russia in October 2024, 13 countries were invited to become BRICS partners, meaning they are on the path to full membership in the near future. Initially founded in 2009 as BRIC—by Brazil, Russia, India, and China—the organization grew in 2010 with the addition of South Africa.
At the 2023 summit in Johannesburg, South Africa, BRICS expanded again, inviting six more countries: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. Egypt, Ethiopia, Iran, and the UAE accepted the invitation and officially became BRICS members in January 2024.
Saudi Arabia still had not made a formal decision as of the end of 2024. Argentina initially agreed to join, when it had a center-left government led by President Alberto Fernández and Vice President Cristina Fernández de Kirchner. However, far-right pro-U.S. leader Javier Milei came to power in December 2023, and he overturned the decision, blocking Argentina from joining BRICS in January 2024.
With the addition of the partner states, nine of the 20 most populous countries on Earth are now part of BRICS. Their combined population is approximately 4 billion, or roughly half of the world population.
India is the most populous country on Earth, followed by China in second. Each country has more than 1.4 billion inhabitants. With nearly 290,000 citizens, Indonesia is the fourth-most populous nation.
Brazil is the seventh-most populous country, followed by Russia in ninth and Ethiopia in tenth. Egypt is the 14th-most populous nation; Iran is the 17th; and Thailand is the 20th.
Together, the nine BRICS members and additional nine BRICS partners represent more than 41% of global GDP (when measured at purchasing power parity). The original five BRICS members made up 33.76% of world GDP (PPP) in October 2024, according to IMF data.
This means that the five founding BRICS members comprise a larger share of the global economy than the G7, which only represented 29.08% of world GDP (PPP) in 2024. This is a massive decline from 1990, when the G7 economies made up nearly 52% of world GDP (PPP).
The main reason for this historic shift is the enormous economic growth in China, which has become the world’s only industrial superpower, responsible for 35% of global gross manufacturing production (nearly three times that of the United States).
China overtook the U.S. to become the largest economy on Earth in 2016, according to IMF data. As of October 2024, China made up 19% of global GDP (PPP), compared to just 15% for the U.S.
BRICS has become one of the most important organizations on Earth, bringing together nations with massive populations, enormous economies, and incredible productive capacities.
(Source: MRonline.org)
MTN Mobile Money (MoMo) has reported outstanding growth in its digital lending portfolio, marking a 100% increase over the past 12 months.
The success of its digital lending program, which was launched in January, has played a pivotal role in expanding the company’s financial services.
Richard Yego, the Managing Director of MTN MoMo, told journalists at a briefing that their portfolio now includes four loan products—Extra Cash, More Cash, More PESA, and Mopesa—which cater to a diverse range of customers and needs.
He added that digital lending has been a key driver of financial inclusion, with loans and savings products empowering millions of customers. “The growth we’ve seen in the last year underscores the growing trust in mobile money solutions and their ability to meet the financial needs of our customers,” Yego remarked. The launch of the new loan products has helped the platform expand its reach and significantly improve its disbursement figures.
In the first quarter of this year alone, loan disbursements tripled, a trend that has continued throughout the year. This boost has made MTN MoMo a leader in the digital lending space, particularly in markets where access to traditional banking is limited. Yego explained that the product offering caters to varying customer needs, from small micro-loans to larger sums, making it an attractive option for a wide range of users.
The most popular product in the past nine months has been More PESA, which offers higher loan limits, ranging from UGX200,000 to UGX300,000. “With its higher loan ceilings, More PESA has quickly become the favorite of our customers, and it led the disbursement figures in Q1, with UGX200 billion being distributed monthly,” said Yego. This success reflects the growing demand for more flexible and accessible financial products in the region.
Meanwhile, Extra Cash, which initially started slowly but has gained substantial traction due to its small loan amounts. This product has attracted a broad user base and is now one of the most widely used.
Yego revealed that the transaction base for Extra Cash has almost doubled this year, with over two million active borrowers utilizing it. Each of the four loan products has contributed at least 20% to the total disbursement figures for the past nine months, highlighting their broad appeal and effective reach.
In addition to the growth in digital lending, MTN MoMo has seen a significant increase in cashless transactions. The number of transactions has grown by 57%, from 16 million to 25 million, while the total transaction value has increased from UGX1.4 trillion to UGX2.1 trillion.
“The disbursement of UGX990 billion over nine months shows our strong performance as we move towards our year-end target of UGX1.2 trillion,” Yego said.
Looking ahead, MTN MoMo has set ambitious targets for 2025, aiming to surpass UGX2 trillion in disbursements. “Our focus for the coming year is to expand our reach and empower even more customers through financial inclusion,” Yego noted.
As part of this effort, MTN MoMo is exploring key partnerships, including collaborations with the World Food Programme (WFP), the United Nations High Commissioner for Refugees (UNHCR), and the Government of Uganda. These partnerships have already facilitated the disbursement of $7.8 million in financial aid to refugees via mobile money platforms.
The company has also introduced a revamped overdraft facility, dubbed MoMo Advance, to help customers complete transactions when they fall short of funds. Launched in September, this service has been well-received, further enhancing the platform’s appeal.
MTN MoMo's rapid growth is also reflected in its expanding customer base, which increased from 12 million at the end of 2023 to 13.6 million by mid-2024.
“Our target is to reach 40 million active users by the end of this year,” Yego stated, emphasizing the company’s commitment to increasing purchasing power through greater financial inclusion.
Uganda’s export earnings surged to US$744.86 million (approximately UGX2.7 trillion) in October 2024, marking a 9% increase from US$682.69 million (UGX2.47 trillion) in September.
This growth was fuelled by strong performances in mineral products, tea, tobacco, fish and its products, hides and skins, simsim, beans, and oil re-exports, according to the Ministry of Finance's Performance of the Economy Monthly Report.
The report highlighted that exports, excluding coffee and mineral products, also registered notable growth of 8.2%, increasing from US$266.15 million to US$288.05 million. “This signals a rise for the majority of our exports in October 2024,” the report noted.
The Middle East emerged as the leading destination for Uganda’s exports, accounting for 38.3% of total exports. Within the region, the United Arab Emirates (UAE) dominated, receiving 97.8% of Uganda’s exports to the Middle East.
Other key markets included the East African Community (26.6%), European Union (EU) (15.4%), with Italy and Germany leading at 50.5% and 24.9% of EU-bound exports, respectively. Exports to Asia accounted for 14.5%, reflecting growing trade ties with the continent.
The value of merchandise imports also rose significantly by 21.7%, climbing from US$1.05 billion (UGX3.8 trillion) in September to US$1.27 billion (UGX4.6 trillion) in October 2024. This sharp increase was largely driven by higher volumes of formal private sector non-oil imports, including machinery equipment, vehicles and accessories, base metals, and mineral products.
Asia contributed about 44% of total imports with Chinese taking more than half of merchandise imports (51.3%), while India contributed 24.7% followed by Japan with 9%.
Locally, the EAC countries contributed 21.8% of total imports while rest of Africa contributed 12.7% and the Middle East 11.8%.
The increase in export earnings, particularly from mineral products and agricultural commodities, highlights Uganda’s expanding role in global trade. Analysts attribute this strong performance to rising demand for Uganda’s diverse exports and improved market access in key regions such as the Middle East and Europe.
Conversely, the sharp rise in imports underscores growing domestic demand for machinery, vehicles, and industrial inputs, which are critical for sustaining economic growth and infrastructure development.
With export revenues reaching UGX2.7 trillion and a parallel rise in imports to UGX4.6 trillion, Uganda’s trade dynamics reflect both opportunities and challenges as the country navigates its path toward economic transformation. The Ministry of Finance however, remains optimistic, projecting continued growth driven by strategic trade partnerships and expanding export volumes.
On the other hand, the report also indicated that credit from financial institutions to households and businesses approvals for October 2024 experienced rose to about UGX1.6 trillion in the period under review. This growth was largely attributed to businesses securing working capital ahead of the festive season, particularly in the Business Services sector.
A significant improvement in the rate of loan approvals was also recorded. According to the report, the approval rate rose sharply from 55.2% in September to 75.4% in October 2024, reflecting a more responsive and confident banking sector.
Personal and Household Loans continued to dominate credit activity in October, with loans worth UGX445 billion approved, representing 28% of the total credit extended. This trend underscores increased consumer spending in preparation for the holiday season.
The report further highlights that Personal Loans and Household loans accounted for the largest share of total credit approved for lending in October 2024.
The Business Community, Social, and Other Services sector followed, with UGX254 billion approved, accounting for 16% of the total credit. The Trade sector secured UGX248 billion (15.6%), while Building, Construction, and Real Estate attracted loans worth UGX231 billion (14.5%). Meanwhile, the Manufacturing sector received UGX211 billion, contributing 13.3% to the total credit approved.
The Kenyan High Commissioner to Uganda, Joash Maangi, has acknowledged the enduring "brotherhood" between Kenya and Uganda, which he said has significantly contributed to mutual progress.
Speaking at celebrations to mark Kenya’s 61st Jamhuri Day in Kampala recently, Maangi expressed his country’s commitment to regional economic transformation.
"Our cooperation is a reflection of the strong ties between our nations, and it has driven growth across various sectors," said Maangi, further emphasizing the importance of the Joint Ministerial Commission, a platform that facilitates and formalizes agreements to deepen bilateral cooperation.
Uganda’s Foreign Minister, General Jeje Odongo, also highlighted the vital relationship between the two countries in fostering regional development in key sectors such as trade, defense, health, education, and more.
The colourful event at the Kampala Serena Hotel demonstrated the growing cooperation between Kenya and Uganda, with leaders emphasizing shared prosperity, trade, and regional collaboration.
A notable outcome of the Joint Ministerial Commission, according to Maangi, was the second meeting in May 2024, where seven critical Memoranda of Understanding (MoUs) were signed. These agreements cover public service, youth affairs, sports, and scientific research, solidifying the collaborative framework between Kenya and Uganda.
He also discussed the role of economic diplomacy in not only advancing Kenya’s socio-economic goals but also promoting regional integration.
"We are committed to regional economic transformation that benefits all nations," Maangi stated. He highlighted the significant role of Kenyan investments in Uganda’s manufacturing, construction, ICT, and agriculture sectors as pivotal drivers of regional prosperity.
Both leaders also emphasized the importance of improving cross-border trade and infrastructure as key elements in the ongoing partnership. One key initiative discussed was the implementation of one-stop border posts, designed to streamline and accelerate trade between Kenya and Uganda.
Maangi said Kenyan President Dr. William Ruto had directed that goods arriving from Mombasa should face no delays at the border, ensuring smoother transit between the two nations. “We are committed to ensuring that Ugandans exporting goods via the Port of Mombasa experience no hindrances,” said Maangi.
He also highlighted the successful integration of Kenyan and Ugandan customs officers at the border, which has led to faster clearance times, making trade between the two countries more efficient and seamless.
One of the key achievements showcased during the Jamhuri Day celebrations was the oil trade agreement signed between Kenya, Uganda, and Tanzania. The agreement, finalized in May 2024 during Ugandan President Yoweri Museveni’s state visit to Kenya, enables Uganda to import refined petroleum products through the Port of Mombasa, resulting in lower fuel prices for both countries.
Maangi hailed the agreement as a "game-changer" for regional economic cooperation, noting that it has contributed to reduced fuel prices at the pump due to improved logistics and reduced transit costs. "The success of this oil deal demonstrates the power of collaboration between Kenya and Uganda, two close neighbors and essential trade partners, working together to foster economic stability and growth," Maangi explained.
Both Maangi and Minister Odongo emphasized the crucial role of private sector engagement in further strengthening Kenya-Uganda relations. Gen. Odongo pointed out that Kenya remains one of Uganda’s largest trade partners, with both countries continuing to grow together economically.
"We must encourage both the public and private sectors to explore new opportunities for collaboration and deepen our economic integration," Odongo said.
Kenya and Uganda play central roles in regional economic organizations such as the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the Nile Basin Initiative. They are also key participants in the Northern Corridor Integration Projects, which aim to improve infrastructure and connectivity across the region.
In a room full of chief executives, he easily stands head and shoulders above them - almost everyone is forced to look up to him.
However, Mumba Kenneth Kalifungwa is way much more than just his giant frame – he is a seasoned, highly experienced and qualified banking executive.
It is therefore only fitting that Stanbic Bank Uganda, the country’s largest commercial bank by assets, has snatched him from Absa Bank to join them as their new Chief Executive Officer, following a torturous search process to replace former CEO Anne Jjuuko who left on promotion to head Global Markets at the regional office in Nairobi, Kenya.
“We are pleased to welcome @MumbaKalifungwa as the new Chief Executive of Stanbic Bank Uganda, effective March 1, 2025, following regulatory approval,” the bank said in a tweet on its X page.
Kalifungwa, a Zambian national, has been the Managing Director at Absa Bank Uganda since 2020.
He holds a Master’s degree in Business Administration from Heriot-Watt University Business School, in Edinburgh, Scotland, in addition to being a member of the Association of Chartered Certified Accountants.
Before coming to Uganda to head Absa Bank, Kalifungwa was the chief financial officer at ABSA Bank Botswana after playing the same role at Barclays Bank Zambia.
His banking career goes back to 1995. He started out at PricewaterhouseCoopers (PwC) in Zambia. Later, he joined the Zambia Revenue Authority, serving there as senior accountant prior to joining Barclays Bank Zambia as CFO.
He is said to be an expert in business development, risk management, and financial strategy, skills that the bank desperately needs given the current challenging environment.
“We are confident that under Mumba’s leadership, the bank will continue to experience even more success as we continue to stay committed to our purpose of driving Uganda’s growth,” said a brief statement from Stanbic Uganda.
An analyst who knows Kalifungwa well told this publication that joining Stanbic Bank presents the bank with a tremendous opportunity to cement its position as the undisputed banking industry market leader amidst the challenging environment.
The banking sector in Uganda is highly regulated by the Central bank, as reflected in its unexplained rejection of the bank’s initial candidate to replace Jjuuko in April.
Additionally, Ugandan financial instutitions are increasingly becoming vulnerable to cyber threats, including fraud and data breaches. The rise of mobile banking, online transactions, and digital payments has created opportunities for fraudsters to exploit vulnerabilities in the systems. Protecting customer data and preventing cybercrime is an ongoing challenge that requires constant investment in technology and security systems.
Also, banks are increasingly facing stiff competition from fintechs such as MTN Mobile Money and other mobile-based financial platforms that have gained traction in Uganda, offering a cheaper and more accessible alternative products to traditional banking.
How Kalifungwa would help Stanbic Bank Uganda to navigate these challenges and to be the one other banking CEOs would look up to as a benchmark remains to be seen.
The Stanbic Bank Uganda, which is listed on the Uganda Securities Exchange, is owned by the Standard Bank Group of South Africa and is a subsidiary of Stanbic Uganda Holdings Limited and a sister company to Stanbic Incubator, SBG Securities Limited and FlexiPay.
Civil society organisations (CSOs) have welcomed the setting up of a national multisectoral working group to guide the implementation of the national school feeding initiative next year.
According to the Ministry of Education and Sports, the Government has already drafted the school feeding policy and soon it will be scrutinized by different stakeholders before passing it next year as a guiding tool for providing meals to learners in primary schools across the country.
However, the CSO say the success of Uganda’s nationwide school feeding program hinges on strategic planning and implementation. According to Gilbert Musinguzi, the Quality Assurance Manager at Uganda Debt Network (UDN), establishing a dedicated budget line and conducting regular financial audits would enhance transparency and prevent misuse of funds.
“Currently, 67% of children in Universal Primary Education (UPE) schools do not receive meals at school. This gap must be addressed to improve attendance and learning outcomes,” he stated.
A study by the World Bank underscores the potential impact of school feeding programs, indicating that they could enhance school enrollment by up to 29% in Uganda. Furthermore, data from the Uganda Bureau of Statistics (UBOS) reveals that malnutrition affects 33% of children under five years, a figure that underscores the importance of nutritional support for school-going children.
Currently, over 64% of school-going children spend their day without food, significantly compromising their ability to participate effectively in school activities.
The program could also have significant economic benefits. Research by the Global Child Nutrition Foundation suggests that every dollar invested in school feeding programs yields up to $9 in economic returns due to improved health, education, and productivity.
Aloyo Monica, a primary six pupil at Tekibur Primary School in Amuru District, welcomed the proposed program, noting, “It will reduce school dropouts, improve our health, and boost performance.”
Her head teacher, Atim Alex, echoed her sentiments, adding that the initiative could significantly increase enrollment and retention. “In our district alone, over 45% of children miss classes because of hunger,” Atim shared.
Kenneth Asiimwe, an economist at ESBAG, urged the government to address corruption a risk. “Corruption and misuse of funds pose significant risks to this program. The government must make corruption a highly risky endeavor by implementing strict accountability measures,” he said.
Infrastructure deficits also present a challenge. According to the Ministry of Education and Sports, only 27% of schools have functional kitchens, while less than 15% have adequate storage facilities for food supplies. CSOs called for effective collaboration among ministries, local governments, and partners to avoid duplication of efforts and ensure smooth coordination.
Esther Mufumba, Programs Manager at UDN, stressed the need to increase financing for agriculture to enhance local food production. “We commend the government for increasing the Agro-industrialization budget by 4% to UGX 1.89 trillion in the current FY2024/25.
However, for the school feeding program to succeed, agricultural financing must increase from the current average of 5% to the 10% recommended under the Malabo Declaration on Agriculture in Africa (2014),” she explained.
CSOs also urged the government to prioritize finalizing and operationalizing the draft School Feeding Policy to provide a clear framework to guide the implementation of sustainable and equitable school feeding programs.
Additional recommendations include establishing national and regional food reserves, expediting the approval of the Food and Nutrition Bill 2024, and enhancing monitoring and evaluation processes.
The program’s ripple effects could be transformative. For instance, reducing hunger could improve the performance of over 15 million school-aged children, helping Uganda achieve Sustainable Development Goals (SDGs) related to education and hunger. According to UNICEF, such programs also promote gender equality by improving girls’ school attendance, especially in rural areas where dropout rates are as high as 40%.
The Bank of Uganda (BoU) has refuted reports that IT systems were hacked, following a multimillion-dollar scam that diverted money to bank accounts in the United Kingdom and Japan.
Speaking while presenting the December 2024 Monetary Policy Statement, Deputy Governor Dr. Michael Atingi-Ego assured the public that the Central bank's IT infrastructure remains secure and uncompromised.
“It is not correct to say that the BoU IT systems were hacked. Hacking implies unauthorized access, and there is no evidence of such access to divert funds from BoU systems,” Dr. Atingi-Ego clarified. Instead, he said the fraud happened outside the bank's systems, leading to the misdirection of millions of dollars to unintended recipients.
According to Dr. Atingi-Ego, the fraudulent payments in question include two major transactions:
1. World Bank Payment: A sum of more than $6.1 million meant for the World Bank was diverted to Roadway Co. Limited via MUFG Bank of Japan on September 12, 2024.
2. African Development Fund Payment: An amount of about $8.6 million intended for the African Development Fund was instead sent to MJS International in London, UK, on September 28, 2024.
“Upon discovering these discrepancies, BoU launched internal investigations and immediately notified government agencies, including the Uganda Police and the Financial Intelligence Authority,” he noted.
He added that they had already recovered $8.2 million from MJS International, which has been credited to the Consolidated Fund. However, $391,660.45 remains unaccounted for, and efforts to recover it are ongoing through BoU’s correspondent bank, Citibank N.A.
Recovery of the funds sent to Roadway Co. Ltd in Japan has proven more challenging, with MUFG Bank of Japan reportedly being uncooperative. “We continue to work with our domestic and international partners to pursue the recovery of these funds,” the BoU chief added.
Dr. Atingi-Ego emphasized that they are collaborating with the Office of the Auditor General and other investigative bodies to uncover the full extent of the fraudulent activities. “Where the diversion took place, how, and who was involved is the subject of ongoing investigations. The public can rest assured that BoU’s IT systems remain fully operational, secure, and uncompromised,” he added.
He dismissed reports that some BoU staff had been implicated in the fraudulent transactions. However, he said they would cooperate fully with investigators and release a comprehensive report once the investigations are complete.
“We understand the public’s concerns and are committed to transparency. BoU will issue a detailed report once investigations conclude. For now, let’s allow the relevant authorities to complete their work,” he added.
The scam is the most recent of serious incidents targeting financial institutions, which underscores the importance of vigilance in financial transactions and collaboration between domestic and international entities to combat the vice.
In recent years, international financial crime has become a major concern for institutions and governments, with its impact reaching far beyond individual nations and affecting the global economy, security, and governance.
The rise of globalization has facilitated easier movement of money across borders. Financial transactions, especially digital payments, can now occur instantaneously on a global scale, making it difficult for regulators and authorities to track illicit activities.
Analysts say financial crime can thrive when countries have weak or inconsistent financial regulations and enforcement mechanisms. Developing countries are particularly vulnerable and have become attractive for money laundering and other illicit activities. This is a serious concern as such fraud drain resources that could otherwise be invested in productive economic activities that help the poor and instead enrich a few individuals in developed countries.
As Uganda accelerates efforts towards digital integration, device financing is emerging as a critical solution to bridge the digital divide and empower more individuals and businesses to participate in the connected economy.
While mobile phones usage has surged in recent years, smartphone penetration has remained low, primarily due to high costs.
High quality smartphones, which typically range from UGX400,000 to UGX1.2 million remain out of reach for many Ugandans, particularly those in rural areas. This affordability gap has limited access to critical digital services, including mobile banking, e-commerce, online education, and telemedicine.
To address this challenge, several asset financing companies are leveraging asset financing solutions that allow customers to purchase smartphones on credit.
This ‘Buy Now, Pay Later’ model, which involves a down payment and spreading the remaining balance over several months, is revolutionizing access to smartphones. Payments can be conveniently made via mobile money platforms, making the process seamless for customers.
Armands Supstiks, the deputy Country Director for Watu Uganda, says that asset financing offers a flexible and accessible way for Ugandans to acquire smartphones. He said the devices are offered at low-interest financing options, making quality devices affordable even for low-income earners.
"For small business owners, smartphones are more than just communication tools; they are essential for conducting online transactions and using business support apps that streamline operations. Our goal is to ease the upfront cost burden and make smartphones accessible to those who need them most," Supstiks said.
He also pointed out that as the Ugandan government prioritizes digital inclusion, Watu is aligning its policies to boost smartphone penetration, enabling more Ugandans to engage in the digital economy. This, in turn, is creating new opportunities for growth and innovation.
Supstiks reiterated the pivotal role of asset financing in equipping Ugandans with the tools they need to thrive in a digital economy.
“By increasing smartphone penetration and investing in internet infrastructure, Uganda is steadily moving toward becoming a fully connected nation. At Watu, we are proud to be part of this journey, offering affordable solutions that empower individuals and businesses,” he said.
Though slightly more expensive overall, acquiring a phone on credit can have several benefits. One of the main benefits is that you can get the phone immediately, even if you don't have the full amount to pay for it upfront.
Rather than buying a cheap but poor quality phone with cash, you can get the latest smartphone model without having to pay the full price upfront. This can be particularly useful if you need a new phone urgently but don't have the necessary funds available.
Additionally, buying a phone on credit allows you to spread the cost over a period of time. This can make it more manageable to pay for, especially for high-end smartphones that can be quite expensive. If managed responsibly, buying a phone on credit can help build or improve your credit score. Making regular payments on time shows lenders that you can manage credit effectively.
For Watu, the loan period for phones is 52 weeks (one year) and payments are made on a weekly basis. However, despite these benefits, many potential customers remain unaware of financing programs that could make high quality and long-lasting smartphones more affordable.
Nyombi Thembo, the Uganda Communications Commission Executive Director, said low smartphone penetration needs to be dealt with as it is an obstacle to realizing the country's digital transformation goals.
The Bank of Uganda (BoU) is set to assess a proposal from Standard Chartered Bank Uganda regarding the sale of its wealth management and retail banking operations in Uganda.
But in a statement released on December 2, Kenneth Egesa, BoU’s Director of Communications and Public Relations, emphasized that the BoU would collaborate closely with Standard Chartered Bank to ensure the proposed sale complies with all regulatory requirements.
“We are committed to safeguarding the integrity of the financial sector throughout this process and ensuring a smooth transition for all stakeholders involved,” Egesa stated.
Sanjay Rughani, chief executive of Standard Chartered Bank Uganda, said the sale process of their retail banking segment was expected to take 18 to 24 months, pending regulatory approval.
He said the move aligns with Standard Chartered PLC’s broader strategy to streamline operations and enhance its corporate and institutional banking focus in Africa.
However, BoU assured Standard Chartered clients that they can continue transacting as usual until the two-year transition process. “Standard Chartered Bank Uganda remains compliant with all statutory and prudential requirements, including liquidity and solvency standards,” the report highlighted.
Headquartered in the United Kingdom, Standard Chartered Bank opened its doors in Uganda in 1912, thus becoming the oldest commercial bank in the country.
A statement from the Group emphasized the shift to serving corporate and institutional clients, with CEO Bill Winters noting that the exits are designed to concentrate resources in regions offering the most distinctive opportunities. The group plans to redirect resources in these markets to serve the cross-border needs of global corporate and financial institution clients.
“We are committed to maintaining our corporate and institutional banking strengths while enhancing service delivery for our key clients,” noted Sanjay Rughani, Standard Chartered Bank’s Chief Executive Officer.
Nine years ago, Barclays PLC also took a similar move, citing operational and capital constraints. This led to the creation of Absa Group Limited, a South African multinational banking and financial services company. In 2022, Barclays sold off its stake in Absa, marking the end of its retail banking presence on the continent.
But whereas Barclays exited retail banking, it still maintains a presence in Africa through its investment banking and wealth management divisions, a path that Standard Chartered has also opted to walk.
Analysts say the rising popularity of digital banking and fintech on the continent has disrupted the traditional banking model, thus forcing many of the older banks to go back on the drawing board.
The BoU reiterated its confidence in Standard Chartered Bank Uganda’s operational soundness, urging the public to transact with confidence. As part of its regulatory oversight, the Central bank will monitor the process to ensure the interests of customers and the financial sector remain safeguarded.
This shift highlights the evolving landscape of banking in Uganda, as multinational financial institutions recalibrate their strategies to address changing market dynamics and prioritize high-growth sectors.
With Standard Chartered’s focus shifting to corporate and institutional banking, industry stakeholders will be watching closely to see how this decision impacts Uganda’s banking ecosystem.
Apart from providing jobs to more than 500 Ugandans, Stanchart is Uganda’s third biggest bank, is also one of the biggest financers of Uganda Government large-scale projects.
Mediage Ltd reaffirmed its dominance in Uganda’s public relations industry by winning the prestigious PR Agency of the Year award for the second year in a row.
The agency’s impressive streak continued as it also scooped two additional awards at the Public Relations Association of Uganda (PRAU) Excellence Awards gala in Kampala on November 29: Corporate Communication Campaign of the Year and Overall PR Campaign of the Year.
The accolades have further underscored the agency’s ability to deliver impactful, creative, and results-driven communication strategies that resonate with clients and stakeholders.
John Chihi, the Mediage PR Lead Consultant, attributed the success to the unwavering support of clients and the dedication of his team to excellence and innovation.
“Winning these awards is a testament to our commitment to delivering transformative communication strategies that drive results for our clients. We remain steadfast in our pursuit of excellence and innovation,” he said.
The company’s success was also a proud moment for its clients. Rhona Arinaitwe, the Senior Manager for Corporate Communications at MTN Uganda, congratulated the agency for the “well-deserved” recognition.
“Mediage’s innovative and strategic approach to communication has been instrumental in amplifying our brand’s presence and impact. This award reflects their dedication and aligns with our vision to continue delivering exceptional experiences to our stakeholders,” she said.
Samuel Matekha, the Diamond Trust Bank (DTB) Uganda Head of Marketing and Communication, echoed a similar sentiment, emphasizing Mediage’s value as a trusted partner.
“Working with Mediage has elevated our public relations efforts. Their creativity, professionalism, and ability to craft campaigns that resonate with our audiences make them a vital partner. This recognition is well-earned, and we look forward to continuing our collaboration,” he said.
The award gala, which brings together the country’s top PR practitioners, government leaders, and corporate executives, also underscored the industry’s role in shaping perceptions and driving growth.
Guest of Honour Hon. Shartsi Musherure (MP, Mawogola County North), pledged her support for the proposed Public Relations Practitioners Bill.
She described the awards gala as a vital platform for recognizing excellence within the profession.
“I am confident that these Awards inspire PR practitioners to perform at their highest potential. They enhance credibility, increase visibility, and create new business opportunities for winners,” Musherure remarked.
Other Winners:
* Social Media/Digital Communication Campaign – Population Services International (PSI) * Not-for-Profit Campaign – Population Services International (PSI) * Public Affairs Campaign – UMEME * Media Relations & Media Management Campaign of the Year – Brainchild BCW * CSR & ESG Campaign – Uganda Breweries Limited (UBL) * Crisis Communication Management Campaign – Equity Bank Uganda * Internal Communications Campaign – EACOP
The General Council of the World Trade Organization (WTO) has agreed by consensus to reappoint Dr. Ngozi Okonjo-Iweala as Director-General for a second four-year term.
This decision reflects broad recognition of her exceptional leadership and strategic vision for the future of the WTO, said a November 29 statement from the UN trade body.
Dr. Ngozi Okonjo-Iweala first assumed office as Director-General in March 2021, becoming the first woman and first African to lead the WTO. Her first term concludes at the end of August next year
The WTO said the reappointment process was the result of the fact that there were no additional nominations submitted by the 8 November deadline, meaning that Dr. Okonjo-Iweala stood as the sole candidate.
“The process was conducted in a fully open and transparent manner, adhering to the WTO’s “Procedures for the Appointment of Directors-General,” the statement said.
It added that during a special General Council meeting, Dr. Okonjo-Iweala outlined her forward-looking vision for the WTO. Following her presentation and the Council formally endorsed her reappointment by consensus.
"As we look ahead, the Council fully supports Dr. Okonjo-Iweala’s commitment to ensuring that the WTO remains responsive, inclusive, and results-driven. Her leadership will be critical as the organization continues to advance a resilient, rules-based, and equitable global trading system," the statement added.
Whereas her new term is set to begin on September 1, 2025, observers said the quick decision to reappoint her was prompted by the re-election of President Donald Trump whose term starts on January 20.
They said the common practice of appointing the DG by consensus made it possible for Trump to block Okonjo-Iweala's appointment for months in his first term, forcing her to wait to take the reins until after President Joe Biden entered the White House in early 2021.
Describing her reappointment as an honour, Ngozi Okonjo-Iweala pledged her commitment to work alongside the staff of the WTO to build a more inclusive, equitable and rules-based multilateral trading system.
“I am deeply honoured by the trust and support of the WTO General Council and its 166 Members. It is a privilege to continue serving as Director-General for a second four-year term.
“In recent years, the WTO has played a vital role in helping Members navigate pressing global challenges, including the pandemic, conflict, and heightened geopolitical tensions.
“As we look ahead, I remain firmly committed to delivering results that matter—results that ultimately improve the lives of people around the world.
“I am deeply committed to working alongside the talented and dedicated staff of the WTO to build a more inclusive, equitable, and rules-based multilateral trading system that benefits all.”
However, analysts expect the road ahead for the three-decade-old WTO will be challenging and most likely characterised by trade wars, with Trump, who returns to the White House, threatening hefty tariffs on goods from Mexico, Canada and China.
In a pro-active move aimed addressing the urgent need for road safety and professional motorcycle training, Watu Uganda, a leading asset financing company, has launched motorcycle riding school in Kampala.
Speaking at the launch in Kamwokya in Kampala on November 28, officials said the groundbreaking training centre, the first of its kind in Uganda, comes to provide accessible, high-quality motorcycle training in a bid to enhance road safety and contribute to the development of skilled, responsible riders, especially within the boda boda (motorcycle taxi) industry.
By providing training, Watu Shule seeks to reduce accidents, improve the quality of service, and ensure that motorcyclists have the necessary skills to operate safely and responsibly.
Watu Shule offers a comprehensive curriculum that combines both theoretical instruction and practical training. It emphasizes practical skills, including road safety, defensive riding techniques, and emergency response procedures.
The training program, which offers flexible payment plans for trainees, covers essential topics such as motorcycle operation, traffic regulations, defensive riding, and safety practices. The school’s approach is designed to equip riders with the knowledge necessary to reduce road risks and improve road safety across the country.
Upon successful completion, riders receive official licenses and certifications, which enhance their credibility and professional standing. The initiative has been hugely successful in Kenya where it has played a big part in improving the standards of motorcycle riders, particularly in areas like road safety, proper riding techniques, and responsible behavior on the road.
During the launch event, Christian Kamukama, the Head of Commercial at Watu Uganda, explained that the school seeks to close the skills gap within the boda-boda sector. “We’re confident that this initiative will empower many Ugandans, improve road safety, and support economic growth,” Kamukama said. He highlighted that the program not only trains riders but also provides them with opportunities for sustainable livelihoods.
Watu Shule's effectiveness stems from its comprehensive approach, affordability, and focus on practical skills and knowledge. By addressing the specific needs of boda boda riders, the program empowers them to become safer and more responsible road users.
Michael Kamoga, the Road Safety Officer at the Ministry of Works and Transport, described the initiative as long overdue.
"Until now, there was no formal institution for training riders in Uganda. We fully support this initiative and are committed to working with Watu Uganda to improve road safety," he said.
Michael Kananura, spokesperson for Uganda's Traffic Police, said the initiative comes at a critical time. “On average, five riders die every day due to reckless driving. This school is a vital step in reducing fatalities on our roads,” he said.
According to data from the Uganda Police Force, more than 3,000 fatalities were reported from road traffic incidents in 2023, with motorcycles responsible for nearly 45% of these deaths.
Since its establishment in 2019, Watu Uganda has emerged as the leading provider of asset financing for the boda boda community across the country, and has gained popularity because of the electric motorcycles it is providing in partnership with Gogo Electric Ltd.
Eng. Irene Namuyiga, a road safety engineer at Kampala Capital City Authority (KCCA), emphasized the importance of incorporating electric motorcycles into the training program.
“As we move towards more sustainable transport, it is crucial that new riders are trained on both traditional and electric motorcycles. E-mobility has the potential to reduce air pollution and ease traffic congestion in Kampala. I encourage Watu Shule to include this in their curriculum to ensure that future riders are equipped for both the present and the future of transportation,” Namuyiga said.
SCP Lawrence Niwabiine, Director Traffic, Road and Safety commended Watu Shule’s initiative, stating, “This school will strengthen road safety in Kampala by providing quality motorcycle training and critical skills for safe and responsible riding. As the Police, we are committed to collaborating with Watu Shule to enhance road safety.”
US telecommunications giant Starlink’s launch in Uganda has been postponed to 2025.
Starlink was approved to operate in Uganda in 2023 and was set to start operations this year. The exact reason for the delay in Starlink's launch in Uganda was not explicitly stated.
However, some analysts say it could be due to the complexity of obtaining necessary regulatory approvals from the Ugandan government, including securing licenses for satellite operations, spectrum allocation, and compliance with local telecommunications regulations.
Apart from operating offshore outside the prying eyes of governments and regulators, Starlink also offers significantly faster internet speeds compared to traditional satellite internet, enabling activities like video streaming, online gaming, and video conferencing.
Also, unlike traditional internet providers, Starlink often doesn't impose strict data caps, providing users with more flexibility. Additionally, Starlink's network of satellites provides global coverage, allowing users to access high-speed internet in remote areas, outside the restrictions imposed by local authorities and regulators.
The company has rolled out a direct to mobile phone network, which expands Starlink’s vision by providing ubiquitous connectivity and seamless access to text, voice, and data for LTE phones and devices across the globe.
Consequently, the demand for Starlink’s services has seen significant popularity worldwide, and limitations in terms of availability of hardware could be another factor for delaying the launch in new markets. Starlink launched in Kenya mid last year and has registered significant demand, so much that the company has had to temporarily halt new sign-ups due to shortage of hardware and equipment.
In Africa, Starlink has also been approved to operate in Mozambique, Eswatini, Botswana, Rwanda, South Sudan, Burundi, Benin, Ghana, Sierra Leone and Malawi.
Press reports in Kenya recently said Starlink terminals had been swept off the shelves in record time.
Founded by Elon Musk under SpaceX, Starlink aims to bridge the digital divide by offering high-speed internet connectivity across the globe, leveraging a constellation of low-Earth orbit (LEO) satellites.
The company is renowned for its groundbreaking advancements in space technology. The project's primary objective is to create a satellite network that provides internet services to those areas where access has been unreliable, expensive, or completely unavailable. As of 2024, it has launched over 1,500 satellites serving almost three million customers worldwide.
Starlink's unique selling proposition lies in its use of LEO satellites. Unlike traditional satellite internet services that use geostationary satellites located approximately 36,000 kilometers above Earth, Starlink's satellites orbit at altitudes ranging from 540 to 570 kilometers. This proximity to Earth significantly reduces latency, resulting in faster and more reliable internet service.
The service offers impressive download speeds ranging from 100 Mbps to 200 Mbps. The average in Uganda is 20-30 Mbps. These figures are comparable to, if not better than, many terrestrial broadband services. Moreover, Starlink offers unlimited data plans, a significant advantage over many traditional satellite internet providers that impose data caps.
The primary advantage of Starlink is its potential to provide high-speed internet access to remote and rural areas worldwide. This could revolutionize connectivity in regions where terrestrial internet services are not feasible due to geographical challenges.
Starlink's satellite dishes are small, portable, and easy to install, making the service flexible and adaptable to various needs. This portability is particularly beneficial for those who require internet access in multiple locations, such as RV owners and remote workers.
The potential impact of Starlink is immense. By providing reliable, high-speed internet access to remote areas, Starlink could significantly reduce the global digital divide. This could have far-reaching implications for education, healthcare, and economic development in these regions.
In many developed countries, mobile payments, e-wallets and debit/credit cards, are now the most commonly used payment methods.
According to Fintech Magazine, Sweden, which ironically was the first country to issue banknotes, is ranked as the most cashless country in the world, and the European country is now set to completely eradicate cash payments by 2025.
Ugandans also continue to embrace digital payments, thanks to e-wallets, credit cards and mobile money. In particular, MTN’s ‘Pay with MoMo’ is positioning itself as a key player in the country’s economic transformation. From reducing costs to supporting financial inclusion and boosting economic growth, MoMo’s cashless payment solutions are paving the way for a financially empowered citizenry.
Through its innovative approach, MTN MoMo is not only making transactions easier but is also shaping a future where cashless payments are the norm, creating a more connected and prosperous nation.
Viola Namuyaba, the Senior Manager of Payments at MTN MoMo Uganda Ltd, shared her perspective on the impact of cashless payments, says that with Pay with MoMo, they are transforming lives by making financial services more accessible, secure, and convenient for all Ugandans.
“Our goal is to create an inclusive economy where every Ugandan, no matter where they live, can thrive in a digitally connected world,” she adds.
As Uganda progresses towards a digitally driven economy, MTN Uganda’s “Pay with MoMo” is at the forefront, championing the adoption of cashless transactions across the country.
Leveraging MTN MoMo’s reliable and expansive network of over 12 million active MoMo subscribers, ‘Pay with MoMo’ offers an efficient, secure, and inclusive platform that’s transforming how Ugandans manage their finances and conduct transactions. By reducing dependency on cash, MoMo is unlocking opportunities for individuals, businesses, and the economy at large, creating a ripple effect of convenience, security, and economic growth.
Adopting a cashless payment solution such as ‘Pay with MoMo’ brings numerous benefits, from streamlined transactions to enhanced financial inclusion.
For businesses, going cashless means faster, seamless payments, reducing the time and cost associated with handling cash. Vendors and small businesses benefit from secure transactions, lower operational risks, and the flexibility to serve customers regardless of location or time, expanding their reach and increasing potential earnings.
Consumers also reap significant benefits from MoMo’s cashless solutions. With mobile payments, there’s no need to carry large sums of cash, thus making daily transactions safer and more convenient.
“Pay with MoMo” allows users to pay for everything from groceries to hospital bills, and even entertainment expenses - all from the ease of their mobile devices. This convenience is essential in today’s fast-paced world, enabling users to manage their finances and complete transactions efficiently, anytime, and anywhere.
The growth of cashless solutions like ‘Pay with MoMo’ contributes significantly to Uganda’s economy by encouraging formalization and greater participation in the financial system. By facilitating seamless transactions, MoMo brings the unbanked population into the financial ecosystem, enabling access to services previously out of reach.
Small businesses, particularly in rural areas, can access financial products like microloans and merchant services, supporting growth and resilience. As more people gain access to these tools, Uganda’s economy becomes more inclusive and robust, reducing disparities between rural and urban communities.
Cashless payments also foster transparency and accountability, as digital transactions leave a traceable record. This transparency builds trust within the financial system, thereby driving growth. MTN MoMo is currently running a promotion where customers who pay for their goods and services using MoMo stand a chance to win cash. The prize money is sent directly to their MoMo wallets.
“We currently have over 300,000 registered businesses with merchant codes, and we encourage all our customers to use this opportunity and pay with MoMo to win cash. There is over a billion shillings in cash and prizes up for grabs,” Namuyaba says. Through initiatives like Pay with MoMo, MTN Uganda is committed to empowering individuals and businesses, fostering economic growth, and setting a strong foundation for a cashless Uganda.
A new report by the Ministry of Finance, Planning and Economic Development has indicated that Uganda’s export earnings dropped by UGX 410.4 billion in September.
According to the Performance of the Economy Monthly Report for October 2024, the decline was primarily due to a reduction in coffee exports during the same month.
The report revealed that export earnings reduced by 14.1% to US$ 682.69 million (UGX 2.505 trillion) in September 2024, down from US$ 794.52 million (UGX 2.915 trillion) in August 2024.
The report indicates that coffee export earnings declined by 34.7% to USD144.7 million in September 2024, from US$221.63 million the previous month. Despite a rise in global coffee prices, Uganda faced a drop in export volumes, primarily driven by lower yields in key coffee-growing regions such as Greater Masaka and the South-Western parts of the country.
Officials said the reduced export volumes were primarily due to lower coffee yields in the Greater Masaka and South-Western regions of Uganda, following the end of the main harvesting season.
The reduction in yields significantly impacted Uganda’s overall export performance in September 2024.
Despite the decline in coffee exports, Uganda’s export markets remained diverse, with significant exports to various regions around the world.
The Ministry said the Middle East emerged as the biggest destination for Uganda’s exports, accounting for 36.4% of total exports in September 2024.
Within the Middle East, the United Arab Emirates (UAE) stood out as the primary recipient, with the report stating that the UAE “accounted for 97.6 percent of Uganda’s exports to the region.
The report also revealed that Uganda continued to rely on regional markets for export growth, with the East African Community (EAC) and the European Union (EU) making up key portions of the export portfolio.
The EAC accounted for “28.6% of total exports and within the region, the Democratic Republic of the Congo, Kenya, and South Sudan were the largest markets, accounting for 34.7%, 24.8%, and 18.3% of the region’s exports, respectively.
The EU contributed 18.5% of Uganda’s total exports, with Italy and Germany emerging as the dominant markets, taking up 47.2% and 21.6%, respectively, of Uganda’s exports to the region.
While coffee remains Uganda's most significant agricultural export, the country's export portfolio is increasingly getting diversified. The Ministry’s report noted that Uganda has seen growing demand for products other than coffee, including mineral products, other agricultural commodities, and manufactured products. This diversification, according to the ministry has helped to cushion the impact of fluctuations in the coffee market and provides a buffer against risks associated with the volatility of a single export commodity.
Uganda’s export performance in September 2024 highlights both the challenges and opportunities facing the country’s economy.
While the decline in coffee exports has caused a dip in overall export revenues, the continued demand from diverse global markets provides optimism for the country’s long-term export strategy.
Going forward, the Ministry of Finance emphasizes that strengthening agricultural practices, diversifying markets, and improving yield sustainability would be crucial for Uganda to maintain steady export growth and resilience in its trade sector.
The government has officially launched a Resettlement Action Plan (RAP) to facilitate the construction of the country’s first nuclear power plant in Buyende District.
The $9 billion (UGX33.3 trillion) project, spanning an area of 30 square kilometers in Kidera Sub-county, is expected to displace thousands of residents from 11 villages to make way for the 8,400-megawatt (MW) facility that promises to revolutionize Uganda’s energy sector.
Launching the RAP at Kasaato Village, the First Deputy Prime Minister Rebecca Kadaga assured affected residents that the government is committed to a fair and transparent resettlement process.
“We understand your concerns and pledge to ensure that no one is left behind. Compensation will be transparent and compliant with the law. This project will bring transformative benefits to Uganda, and we want you to be part of its success,” Kadaga stated.
The RAP is designed to address the social, economic, and environmental aspects of resettlement, focusing on fair compensation, social continuity, and improving living standards for displaced communities.
Officials said the Buyende nuclear plant, projected to generate 8,400 MW, would significantly boost Uganda’s energy capacity, which currently relies heavily on hydroelectric and thermal power. According to Denis Tusiime, a nuclear engineer from the Ministry of Energy and Mineral Development, Buyende was selected based on its strong bedrock and proximity to Lake Victoria, which provides the critical water resources needed for nuclear fission.
The project aligns with the government’s Energy Policy 2023, which envisions generating 52,000 MW of electricity by 2040, with nuclear energy contributing 24,000 MW.
“This is a milestone for Uganda’s industrialization and energy independence. The plant will generate an estimated UGX12 trillion annually through industrial growth, reduced energy imports, and enhanced productivity,” said Irene Bateebe, the ministry Permanent Secretary.
Kadaga urged local communities to embrace the project while acknowledging the challenges of displacement.
“We must recognize that such large-scale projects come with challenges, especially resettlement. However, we are committed to ensuring this process is handled with due consideration for the affected communities,” she emphasized.
Uganda’s vast uranium reserves, estimated at over 50,000 metric tons in districts like Arua, Agago, and Masindi, will fuel the plant. The government also plans to develop seven additional nuclear sites to meet long-term energy demands.
The RAP launch marks a significant step in realizing Uganda’s nuclear energy ambitions. As the country transitions to this transformative energy source, the focus will remain on balancing infrastructure development with the welfare of affected communities.
“This is not just a power project; it is a symbol of Uganda’s growth and self-reliance,” Kadaga added.
Nuclear power plants produce electricity by boiling water into steam, which is channelled to turn huge turbines to produce electricity. Uganda has a Memorandum of Understanding with the Russian State Atomic Energy Corporation (ROSATOM) to peacefully use nuclear energy.
While Uganda’s project is a bold step toward achieving Uganda’s socio-economic goals, critics are concerned about its cost-effectiveness. According to the World Nuclear Industry Status Report (WNISR), nuclear energy costs range between $112 and $189 (UGX 415,000–700,000) per megawatt-hour, significantly higher than hydroelectric alternatives.
Activists insist that while nuclear energy offers potential benefits in terms of low-carbon electricity generation and energy security, policymakers must carefully weigh these benefits against the serious risks associated with nuclear power including radioactive waste that could contaminate soil, water, and air for very many years.
Uganda’s largest media house, New Vision Printing and Publishing Corporation, has reported a further decline in its financial performance for the year ending June 2024, extending its loss-making streak for the fourth consecutive year.
The company, which is 53.3% owned by the government, recorded a loss of more than UGX11 billion, more than double the UGX5.46 billion loss it posted in June 2023, as it grapples with a challenging business environment and declining revenues across several key sectors.
The second biggest shareholder is the National Social Security Fund (NSSF) with 19.6%.
In the period under review, the company’s turnover dropped by 8.3%, from UGX87.6 billion to UGX80.3 billion, with almost all of its business segments facing downturns, except commercial printing.
Results published on November 20 show that commercial printing saw an improvement in revenue, increasing from UGX16.2 billion to UGX 19.8 billion. The newly established outdoor advertising segment also made a modest contribution of UGX 811 million.
However, revenues from the traditional media sectors, including print and electronic media, were the most-hit. Print media, which accounted for 39% of the company’s revenue, experienced a decline of approximately UGX3 billion, falling to UGX 31.6 billion.
Electronic media also saw a drop of UGX2.6 billion, falling to UGX 24.2 billion. Publishing, a key area, also suffered a sharp decline, bringing in only UGX1.6 billion compared to UGX7.3 billion the previous year.
The company attributed its performance to several factors, including the rise in cost of raw material inputs like newsprint and commercial paper, which it says rose by 2.8% further pushing up the cost of sales and contributing to the overall loss.
The financial report shows that the company has invested UGX4 billion in the outdoor advertising segment, installing digital screens in key areas of Kampala. The initiative has generated some positive traction, including securing new clients and generating UGX811 million in revenue. However, these measures have not been enough to offset the wider downturn in the business.
The company also saw a slight reduction in its operating costs, with administrative expenses decreasing slightly by 1.6%. However, gross profit recorded a 55% decline to UGX7.7 billion from UGX17 billion recorded the previous year. However, the listed company’s overall financial outlook remains bleak.
As a result of the ongoing losses, the board has announced that no dividends are to be paid to shareholders this year, citing the company’s loss position. The loss per shareholder has more than doubled, with each shareholder losing UGX146.4, compared to UGX71.4 last year.
Revenue from publishing, advertising, circulation, and commercial printing all dropped, reflecting the broader challenges the company is facing going forward.
The ongoing challenges in the traditional media sector, coupled with rising input costs and a volatile business environment, are expected to affect performance throughout the year.
Despite these challenges, the company said it remains committed to navigating these tough times through diversification into new markets and cost-optimization measures. However, it remains to be seen if these efforts would be sufficient to reverse the company’s fortunes in the coming years.
With revenues continuing to fall, especially in traditional media, and operational costs rising, Vision Group faces an uphill battle to restore profitability.
The company’s losses reflect broader trends in the media industry, where traditional advertising models are being disrupted by the new media technologies, and businesses are grappling with increased costs and rapidly changing consumer behavior.
In another first, MTN Uganda has become the first subsidiary of the MTN Group to launch an e-commerce platform, aimed at giving Ugandans a seamless online selling and shopping experience.
Launched in Kampala yesterday, the hi-tech platform, dubbed ‘Market by MoMo,’ is a partnership between MTN Group Fincommerce, a subsidiary of MTN Fintech Group, MTN MoMo Uganda and Mastercard, a global financial services company that provides payment solutions through credit and debit cards.
Speaking at the launch, officials said ‘Market by MoMo’ is a one-stop digital marketplace that allows Ugandans to buy and sell a wide range of genuine products from electronics to groceries, fashion, beauty, fitness products, home & office, mobile phones and electronic appliances, while benefiting from reliable services, flexible payment options, and prompt deliveries.
The new platform represents a significant step forward in Uganda's digital economy, offering both customers and merchants a streamlined and secure way to engage in e-commerce, regardless of their location.
Brian Mutungi, the e-commerce Country Lead of MTN Group Fincommerce, described the new product as a “game-changer,” emphasizing its transformative potential.
“Market by MoMo combines a variety of product categories, flexible payment options, and user-friendly shopping features, making it a game-changer for Uganda’s e-commerce sector. This launch also aligns with our vision of leading digital solutions for Uganda’s progress,” said Mutungi, adding that that MTN Group’s partnership with Mastercard has also been instrumental in bringing Market by MoMo to life.
Anyone with something to sell only needs to register as a vendor and post the product on the platform via the MoMo app or the website; https://market.momo.africa/Portal/. The platform is zero-rated for MTN customers, allowing access without data charges.
The platform offers flexible payment options including MTN MoMo as well as the major credit/debit cards. Delivery is swift and reliable, with orders reaching customers in Kampala and Greater Kampala within two days or less.
Speaking on behalf of Sylvia Mulinge the MTN Uganda CEO,( Joseph Bogera, the MTN Uganda General Manager for Sales and distribution, described the launch of Market by MoMo as a step forward towards building a more equitable, connected, and empowered society.
“As MTN, we are inspired by our vision that everyone, regardless of their background, deserves the benefits of a modern, connected life. It’s a vision that drives us every day to push boundaries and innovate so that we can create a brighter and more inclusive digital future. This milestone reflects the steady and purposeful progress we’ve made, and it highlights the power of collaboration. Together, we’ve woven partnerships that are driving innovation, building capacity, and delivering real, tangible benefits to people across Uganda,” Bogera said.
Amnah Ajmal, Mastercard’s Executive Vice President for Market Development for Eastern Europe, Middle East and Africa, hailed the collaboration with MTN and described the platform as safe, secure and seamless.
“Through this collaboration with MTN Group Fintech, we are proud to enable local businesses and consumers in Uganda to participate fully in better shopping experiences. Market by MoMo is a significant step forward in creating economic opportunities and digital inclusion, aligning with Mastercard's vision for a more inclusive, digital Africa,” she said.
In February, Mastercard and MTN Group Fintech signed a multi-market agreement that will set in motion a new era of collaboration to connect millions of people and small businesses across Africa with digital tools to transact through secure mobile payments, expanding access to the benefits of the cashless digital economy.
Consequently, the Market by MoMo platform will also enable a previously untapped opportunity for Ugandans in the diaspora, to shop for relatives back home using payment options including MoMo or debit/credit card.
“The e-commerce sector is a rapidly growing segment of the global economy,” noted Mutungi.
“By launching Market by MoMo in Uganda, we are not only diversifying our product offerings but also empowering Ugandans to join the digital transformation journey, contributing to our nation’s economic growth. Together, we are setting the foundation for a more connected, more digital, and more inclusive Uganda,” he added.
In a bid to use music as a catalyst for positive energy at the workplace, MTN Uganda has released “Sunny Days”, a lively tune created by MTN Uganda employees under the MTN Got Talent program.
The company said in a press release that the vibrant and spirited anthem reflects the core values that drive MTN's work culture namely; integrity, agility, care, service, respect, collaboration and inclusion, all wrapped in the fun, uplifting melodies that make work as well as everyday tasks and hustles a joyful experience.
MTN Uganda's Chief Executive Officer Sylvia Mulinge said the ‘MTN Sunny Days’ song is not just about having fun—it’s about embracing the values that define MTN as a workplace.
“It embodies the idea that a motivated, valued, and joyful team will always achieve great things. MTN fosters a work culture where creativity is encouraged, and where people feel empowered to bring their best selves to work every day. A happy workplace leads to success, and we believe that spreading this energy through music can inspire not only our employees but also the community we serve,” Mulinge said.
The ‘MTN Sunny Days’ song highlights how fun and positivity are embedded in MTN Uganda's DNA. Whether it's serving customers, innovating new solutions, or just being there for each other as a team, the song reminds MTNers that joy is at the heart of everything they do.
With lyrics that celebrate togetherness, authenticity, and positivity, the “MTN Sunny Days” anthem aims to inspire more than just MTN employees—it is a song for anyone who believes in the power of joy, teamwork, and staying true to your values to achieve success.
Human resources experts say music has the power to uplift moods, reduce stress, and create a more positive atmosphere in the workplace. This can lead to increased job satisfaction and overall well-being.
Music can help alleviate stress and anxiety, which are common workplace stressors. This can improve mental health and overall job satisfaction.
Additionally, shared musical experiences can foster a sense of camaraderie and teamwork among employees, strengthening workplace relationships and increasing job satisfaction.
Starbucks, a global coffee conglomerate with over 35,000 stores worldwide, is known for its unique approach to music and culture, often incorporating music into their events and marketing strategies to create a memorable experience.
MTN Uganda currently employs more than 1,000 employees both directly and indirectly and has built a reputation as one of the most-preferred employers in the country because of its organizational culture and favourable working conditions.
The ‘Sunny Days’ song, whose video was shot at the MTN head offices in Kampala, perfectly encapsulates how MTN’s workplace values create an environment where teamwork, fun, and a positive outlook come together to lead to inevitable success.
The lyrics reflect the spirit of connection, kindness, collaboration, and empowerment that 'MTNers' live by every day.
MTN has a presence in all districts in Uganda and works through a network of over 206,000 MoMo agents, 316,000 MoMo merchants, 200 service stores and 13 main distributors.
For the nine months ended September 30, 2024, MTN Uganda had 21.6 million subscribers, 13.2 million MoMo users, and 9.3 million active data users.
Uganda has been named among the top 20 investment destinations on the African continent in 2024.
The report titled; "Where to Invest in Africa," is compiled by Rand Merchant Bank (RMB) of South Africa.
The report, which provides an in-depth analysis of investment opportunities across African countries, assesses economic conditions, growth potential, and other factors influencing investment decisions in various sectors throughout Africa.
It has ranked 31 African countries, which jointly account for 92% of Africa’s GDP. It put Uganda in the 19th position on the continent, behind Kenya (11th), Tanzania (12th) and Rwanda (15th).
The two small island economies of Seychelles and Mauritius rank first and second as the most attractive investment destinations on the continent, while the significantly larger economies of Egypt, South Africa, and Morocco rank in third, fourth and fifth places respectively.
The scorecard draws on 20 different metrics spanning four measurement pillars, drawing on publicly available data sets from global institutions, including the World Bank, the IMF, the African Development Bank, the United Nations, and the International Labour Organisation.
Among the 31 countries, Uganda’s best score was in the category of ‘Economic Performance & Potential’ where it was ranked 9th among the 31 countries, ‘Market Accessibility & Innovation’ (19th), ‘Economic Stability & Investment Climate’ (20th), and Social & Human Development (19th).
The report notes that the significant drivers of Uganda’s positivity in 2024 include an oil-related construction boost, solid agricultural growth, raised private investment, gold exports (more than one third of the export basket) and a post-COVID-19 tourism recovery.
“However, these positives are countered by some low scores that move Uganda to a final ranking of 19th. Its poorest positioning is 28th for import concentration, which leave it vulnerable to shocks in the price of its main imports. Urbanisation is low (27th overall), with just a quarter of the country living in urban areas,” the report reads in part.
It adds; “Uganda's political landscape and regulatory environment have sometimes been flagged as concerns for investors. The country's legal and regulatory frameworks, although improving, can be seen as inconsistent or challenging for businesses.”
It also notes that although the government has made strides in infrastructure development, Uganda still faces challenges in transport and energy infrastructure, which can impact business operations and investments.
Uganda, however, is cited as one of the countries with ‘People Potential’ - markets with a young and growing demographic, creating a sizeable consumer base and a future workforce.
The ‘Where to Invest in Africa’ report is highly regarded and widely followed, particularly among investors, business leaders, and policymakers focused on the African continent.
To a typical investor, Uganda's performance may be viewed as reflecting a mix of opportunity and caution.
While the country has been credited for its economic potential, particularly in agriculture and natural resources, investors are often advised to consider the broader political and regulatory environment when making investment decisions.
In a bold move aimed at tightening the noose on unscrupulous money lenders, the Government has published Legal Instrument 21 of 2024, which caps interest rates on loans at not more than 2.8% per month (33.6% per annum).
Some incorrigible money lenders have been charging interest rates of 50% or more per month, while some microlenders operating through mobile money have been charging interest rates of more than 10% per month.
President Yoweri Museveni has repeatedly called for tough laws against money lenders, accusing them of defrauding clients and taking advantage of ignorant and desperate people.
The legal notice, titled; ‘The Tier 4 Microfinance Institutions and Money Lenders Act (prescription of maximum interest rate) Notice, which was issued on November 8 and published in the Gazette on November 15, was signed by Finance Minister Matia Kasaija.
“In exercise of powers conferred upon the Minister responsible for Finance by Section 89 (1) of the Tier 4 Microfinance Institutions and Money Lenders Act and in consultation with the Uganda Microfinance Regulatory Authority, this notice is issued this 8th day of November, 2024,” reads the legal notice.
It adds; “In accordance with Section 89 (1) of the Tier 4 Microfinance Institutions and Money Lenders Act, the maximum interest rate that a money lender shall charge on the principal or the actual sum of the money advanced as a loan to a borrower is 2.8% per month or 33.6% per annum.”
The Tier 4 Microfinance Institutions and Money Lenders Act was intended to set up a regulatory framework for microfinance institutions that do not accept deposits and are not supervised by the Bank of Uganda. This legislation aims to protect lower-income borrowers from exploitative practices in the lending market and to ensure better governance within the microfinance sector.
The relevant Section says; “The Minister may, in consultation with the Authority, by notice in the Gazette, prescribe a maximum interest rate which a money lender shall charge.”
It adds; “A money lender who charges an interest that is higher than the maximum interest rate prescribed by the Minister commits an offence and on conviction, is liable to a fine not exceeding 50 currency points (UGX1 million) and the court may, in addition to the fine order that the money lender’s licence be cancelled and the money lender pays the borrower any money paid in excess as a result of the interest rate charged.”
Speaking at the 8th Annual Conference of the Southern and Eastern Africa Chief Justices Forum in Kampala last month, Mr Museveni condemned the high interest rates imposed by money lenders, describing them as exploitative and a threat to Uganda’s economic stability if not properly regulated.
The President particularly criticized hidden contracts, where lending agreements are disguised as purchase contracts.
Among the other unscrupulous practices by money lenders is that of disappearing ahead of the deadline such that the borrower cannot not trace him/her to pay in order not to forfeit the collateral.
However, the law stipulates that when the money lender evades the borrower to the extent that it becomes impossible for the borrower to repay the money lender, the borrower may deposit the loan monies with the Uganda Microfinance Regulatory Authority and and the repayment shall be deemed to have been paid to the money lender.
Earlier, the National Identification and Registration Authority (NIRA) banned money lenders from using National Identity Cards as collateral for loans.
On any given day in Kampala City, the streets are clogged with traffic, the air thick with exhaust fumes. In 2022, Kampala was on the list of the most heavily polluted cities worldwide, with pollution levels frequently exceeding WHO guidelines. The health impacts of air pollution, largely attributed to boda boda motorcycles, include respiratory diseases, heart disease, and cancer.
Kampala is often referred to as a "boda boda city" of Africa because of the sheer number of motorcycle taxis, known as boda bodas, that dominate the city's transportation landscape. These two-wheeled vehicles are ubiquitous, weaving through traffic and offering a quick and efficient way to navigate the city's often congested roads.
With an estimated 350,000 of these motorbikes operating in the city, Lord Mayor Eriasi Lukwago says their contribution to air pollution, noise, and greenhouse gas emissions is significant.
But the coming of the electric motorbike, according to experts, could be a game changer, offering solutions to the long-standing air pollution and waste challenges the city has been grappling with. The eco-friendly bikes are not only transforming the way people move around the city but also offering a cleaner, quieter, and more sustainable alternative to traditional fuel-powered motorcycles.
According to Victor Getenya, Head of Electric Vehicles (EV) at Watu Uganda, the direct contribution of EV bikes to environmental sustainability is immense.
“Electric bikes run on rechargeable batteries, which means no petrol is needed. This significantly reduces greenhouse gas emissions and helps to combat air pollution. This shift is crucial in addressing climate change and improving the quality of urban air,” he says.
He further explains that electric motorbikes also produce zero tailpipe emissions, which is especially important for cities like Kampala, where poor air quality is linked to respiratory issues and other health problems.
He adds that allowing electric bikes to compete with or replace petrol-powered motorbikes on the market would improve air quality in the city, leading to a healthier environment for all its residents.
“Noise pollution, another major problem in cities, is also tackled by electric motorbikes. Traditional petrol engines are notorious for their loud noise, especially during peak hours, creating a constant hum in the urban environment. In contrast, electric bikes operate quietly, leading to peaceful streets and a calmer atmosphere. Having a mix will therefore improve the quality of life for residents,” he adds.
Currently, electric motorbikes account for about 10% of the boda boda fleet in Kampala. This figure is notable, especially when compared to neighbouring East African countries. Watu Uganda has deployed thousands of electric bikes across Kampala, significantly enhancing urban mobility.
Although electric motorbikes cost a little more than their ordinary counterparts, Getenya says Watu Uganda has a financing model aimed at reducing the upfront burden of acquiring the bikes, in order to drive adoption.
“As an asset financing company, we have a model for financing EV bikes, and as we speak, adoption is gaining ground. We have introduced financing options that allow riders to pay for their electric bikes in affordable installments, and this has brought many on board, including those who don’t have access to bank loans,” he says.
He notes that while the initial cost of an electric bike may be higher than that of a petrol-powered one, the long-term savings are significant.
Electric bikes require much less maintenance, with no need for oil change or spark plug replacement or frequent repairs and servicing, which enables riders to save up to UGX500,000 annually on maintenance costs. On top of that, riders can save between UGX10,000 to UGX20,000 daily, in comparison to the petrol-powered bikes.
“As more people adapt to the EV bikes, the trickle-down effect will be immense. With each saving made, investment is also made, which results in a greater impact on the economy, and the household as a whole,” says Gatenya.
Diamond Trust Bank (DTB) and Credable Group have entered a partnership through which Ugandans will be able to borrow microloans via Airtel Money.
The service dubbed, ‘Kwasa Kwasa,’ provides Airtel Money customers with quick, affordable short-term loans, designed to meet their personal and business needs conveniently via their mobile phones.
Officials said the initiative aims to bridge significant financial access gaps, particularly for underserved Ugandans in rural areas and informal savings groups.
Airtel Money subscribers can now borrow amounts ranging from UGX 5,000 without the need for collateral, using Airtel’s USSD code 1858*3# and via the MyAirtelApp.
At the signing ceremony, DTB Uganda’s Chief Executive Officer, Godfrey Sebaana, shared his enthusiasm for the Kwasa Kwasa initiative, emphasizing its alignment with Uganda’s financial inclusion goals.
“We are optimistic that Kwasa Kwasa will help us realize our vision of empowering people to advance confidently. At a micro-level, we’re enabling anyone to solve immediate needs conveniently and affordably,” he stated.
Airtel Mobile Commerce Uganda’s Managing Director, Japhet Aritho, echoed Sebaana’s sentiments. He highlighted Airtel Money's commitment to expanding credit access for Ugandans, particularly those typically excluded from traditional banking.
“At Airtel Money, we are dedicated to building strong partnerships that provide greater credit access to our customers, many of whom wouldn’t be banked traditionally. We welcome DTB and Credable for joining us on this journey, bringing financial services into the hands of millions through our USSD 185.”
Credable Uganda’s Country Lead Simon Asiimwe, underscored the partners' shared commitment to delivering a smooth, reliable user experience.
“Kwasa Kwasa is more than just a loan; it’s a tool for empowerment. We’re focused on ensuring every Kwasa Kwasa customer enjoys a fast, dependable, and exceptional experience,” Asiimwe affirmed.
To qualify for Kwasa Kwasa, customers need only an active Airtel SIM card, Airtel Money registration, and a valid National Identification Number (NIN).
With this simplified eligibility, DTB, Airtel Money, and Credable Group are set to empower more Ugandans to manage their finances effectively and plan for a more secure future.
Several Ugandan banks are already in the micro-lending the fray, which has not only brought financial services closer to Uganda's underserved populations but has also reinforced Uganda’s vision of inclusive economic growth.
Diamond Trust Bank Uganda (DTB) has partnered with Xpress Money, an international money transfer service, to enable customers to receive money in over 170 countries worldwide at no cost.
The partnership represents a key step in reducing the barriers associated with sending money and receiving money as it aligns with the United Nations Sustainable Development Goal 10, which seeks to reduce inequalities by making remittances more affordable.
The development is especially significant for Uganda, one of the largest recipients of remittances in Sub-Saharan Africa, with an inflow of approximately $1.4 billion in 2023.
DTB Uganda’s Chief Executive Officer, Godfrey Sebaana, underscored the importance of this service for Ugandans abroad and their families at home.
“We are thrilled to join hands with Xpress Money to boost our remittance offerings. At DTB Uganda, we recognize that remittances are essential lifelines for many, from covering school fees to healthcare costs and even basic living expenses,” Sebaana said.
He noted that this partnership would not only facilitate critical financial inflows but also contribute to a more financially inclusive economy.
The overall cost of remitting money abroad remains high, particularly for smaller transfers or regions with limited access to banking services.
Money transfer fees/charges can vary widely depending on the service provider, the destination country, and the method of sending such as online or via mobile money. Some providers have hidden costs that are not always immediately apparent to the sender, including withdrawal charges imposed on the recipient at the point of withdrawing the cash.
Yet, remittances play a crucial role in Uganda, often covering essentials like education, healthcare, and housing. By eliminating charges imposed on the recipient, this partnership between DTB and Xpress Money enables greater disposable income for families that rely on funds from abroad, providing an economic buffer for countless households.
The service offers a variety of transfer options, including cash-to-cash, direct account credits, and mobile wallet deposits, ensuring convenient and secure options for Ugandans in the diaspora to support their families at no charge for the recipient.
Samir Vidhate, CEO of Xpress Money, highlighted the partnership’s impact on financial connectivity for customers around the world.
“Our partnership with DTB Uganda reflects our dedication to providing convenient, secure remittance options for customers globally. We are pleased to extend our services to DTB Uganda’s customers, making it easier and more affordable for them to send money home. Together, we aim to simplify remittances and strengthen the connection between families across borders,” Vidhate stated.
The partnership is also part of DTB Uganda’s broader strategy focused on digital transformation and expanding diaspora banking services. By aligning with fintech leaders, DTB aims to refine its remittance solutions to meet the needs of the diaspora market.
The bank’s efforts in this space demonstrate a commitment to making global remittances more efficient and accessible, driving Uganda toward a more resilient, financially inclusive economy.
Aligned with the UN’s goal of reducing remittance transfer costs to below 3% by 2030, DTB and Xpress Money’s zero-cost service is poised to bridge financial gaps, empower Ugandan communities, and enhance economic equality.
For many Ugandans, this service represents not only a cost-saving measure but also a stronger, more affordable connection to loved ones across borders.
The Government of Uganda is set to officially hand over the construction of the Standard Gauge Railway (SGR) project to a Turkish company, following the signing of the $3 billion contract.
Preparations are underway for President Yoweri Museveni to officially commission the project in Tororo soon. Gen. Katumba Wamala, the Works and transport minister, said Yapi Merkezi is to undertake the 272km project for a period of four years.
He expressed confidence in collaborating with Yapi Merkezi, in joint venture with YM Global Ltd, for the strategically important project for the region as it would connect Uganda and Kenya, enhancing regional trade and economic integration.
However, he wants the company to ensure that the project’s Local Content Strategy is adhered to in a bid to ensure that local capacity is enhanced and that Ugandans benefit from the project right from the start. The Government has earmarked at least 40% of the contract value for local suppliers.
The SGR is expected to accommodate passenger trains traveling at 160 kilometres per hour and cargo trains traveling at 120 kilometres per hour - faster than a standard saloon car.
The Malaba-Kampala project entails the design, construction, and supply of rail vehicles for a standard gauge railway that meets European and American standards, with full electrification, as well as two major stations, four medium stations, one marshalling yard, and three freight terminals.
It is Uganda’s first phase of the East African Railway Master Plan, connecting Uganda to neighboring countries including Kenya, DR Congo, South Sudan and Rwanda. Currently, the cost of transporting a container from Mombasa to Kampala is at about $5,000, but the SGR would bring that down to $1,500.
Funding has been provided by the Standard Chartered Plc of the United Kingdom. “Yapi Merkezi has leveraged its extensive expertise in railway engineering to provide the most suitable engineering solutions for this project,” said Dr Erdem Arioglu, the company’s Vice Chairman.
The Malaba-Kampala section stretches from the border town of Malaba, through Tororo and Jinja, to the capital Kampala. Following the completion of the Naivasha-Malaba Railway in Kenya, Uganda is desperate to do its part to connect the country to the Port of Mombasa on the Indian Ocean.
Additionally, the Kampala-Kasese (Western Route) project, for which Yapi Merkezi has also signed a Memorandum of Understanding, will provide the Democratic Republic of the Congo with rail access to the Port of Mombasa.
In January last year, the Ugandan government terminated the contract that it had signed with China Harbour Engineering Company (CHEC) to build the Kampala–Malaba section, on account of "failure to execute" for eight consecutive years.
However, concern persists in regard to the clearance of the right of way as many of the land owners are yet to be compensated. To date, only 150km of land out of the 272km (about 54%) of the Right of Way from Malaba-Kampala has been acquired.
Established in 1965, Yapi Merkezi has undertaken giant projects worldwide. As of 2021, the company had completed more than 62 railway projects totaling more than 4,000 kilometers on three continents, providing safe transportation to 3.5 million passengers daily around the world.
The company has field offices in several African countries, with projects in Tanzania, Ethiopia, Senegal, Zambia, Algeria, Morocco, and Sudan.
In Tanzania, Yapi Merkezi is undertaking a 165km SGR project, which entails maintenance workshops and depot areas, the Railway Institute, signaling, telecommunications and electrification works.
Several influential world leaders have opted not to attend an action summit this week at the center of climate talks in Azerbaijan. High on the agenda is a deal to boost climate funding for developing countries.
The two-day World Leaders Action Summit at COP29 got under way on Tuesday in Baku, Azerbaijan, with around 100 leaders taking part, although there are some noticeable absentees.
The top priority at this year's summit is expected to be landing a deal to boost funding for climate action in developing countries. Some are pushing for the current pledge of $100 billion (€93 billion) a year to be raised by ten times that amount at COP29 to cover the future cost of shifting to clean energy and adapting to climate shocks.
Without adequate finance, developing nations have warned that they will struggle to offer ambitious updates to their climate goals, which countries are required to submit by early next year.
The leaders of the 13 biggest emitters of carbon — countries responsible for more than 70% of 2023's heat-trapping gases — will not appear at this year's gathering.
Chinese President Xi Jinping, US President Joe Biden, and also India's Narendra Modi and France's Emmanuel Macron are among G20 leaders skipping the event.
"It's symptomatic of the lack of political will to act. There's no sense of urgency," climate scientist Bill Hare told the Associated Press.
Nevertheless, Azerbaijan's President and COP2 host Ilham Aliyev, UK Prime Minister Keir Starmer and Turkey's President Recep Tayyip Erdogan are among the nearly 50 leaders set to speak on Tuesday.
COP29 lead negotiator, Azerbaijan's deputy Foreign Minister, Yalchin Rafiyev, emphasized at a press conference on Tuesday that "success doesn't depend on one country alone."
"Unless all countries can slash emissions deeply, every country and household will be hammered harder than they currently are. We will be living in a nightmare," he said.
UN Secretary General Antonio Guterres warned that time was running out in the fight against climate change. "We are in the final countdown to limit the global temperature rise to 1.5 degrees Celsius," Guterres said. "And time is not on our side," he added.
The Paris Agreement, a legally binding climate treaty signed by 196 countries after COP21 in 2015, calls for limiting global warming to 1.5 degrees compared to pre-industrial levels. However, this goal looks increasingly unlikely to be met. This year the limit is expected to be exceeded for the first time, while the target is a multi-year average.
Guterres described 2024 as "a masterclass in climate destruction." The UN chief also said that nations needed to reach an agreement that does not leave poorer countries "empty-handed" in their fight against climate change. "Developing countries must not leave Baku empty-handed. A deal is a must," Guterres said.
In an address on Tuesday, Azerbaijan President Aliyev repeated a controversial quote that oil, gas and other natural resources are a "gift of the God" and said nations should not be judged by their natural resources and how they use them.
"Quote me that I said that this is a gift of the God, and I want to repeat it today here at this audience," he told delegates.
Azerbaijan has seven billion barrels of oil reserves and was one of the first places in the world to start commercial oil production.
A crackdown on the growing menace of identity theft, phone theft and flashing fraud has resulted in the arrest and prosecution of five men.
The five men - Nelson Mukisa, Benjamin Ssekamatte, Umaru Nsubuga, as well as Martin Michele and Joseph Kyakuwa (both phone technicians) - were held at Kiira Road Police Station before being arraigned at the City Hall Court on November 12 to answer charges of being part of a sophisticated phone-flashing syndicate that poses significant risks to digital security and online businesses.
They were charged with theft and breaching a restricted system, in an attempt to steal a phone sold on hire-purchase.
The five suspects are accused of participating in a criminal network that illegally accesses mobile devices, tampering with their software to bypass security systems and erase data. They were later remanded at Luzira prison.
The case, which has raised concerns about the vulnerability of online businesses and digital transactions, was sanctioned by the director of public prosecutions.
While remanding the suspects, City Hall Chief Magistrate Edgar Kalyegira described the offences as serious, which prompted swift action from law enforcement agencies. The suspects face severe penalties, including long prison sentences, if convicted.
In a subsequent operation, three more individuals - Kabuye Arafat, Moses Bbosa, and Umaru Kisitu - were arrested on November 6, 2024, for their involvement in unauthorized access and modification of mobile phones.
The suspects are allegedly part of a larger syndicate that exploits mobile devices to commit crimes such as identity theft, financial fraud, and the illegal extraction of personal information.
The case, like the earlier one, was also sanctioned by the director of public prosecutions and is set to be heard on November 19, 2024.
Phone flashing has become a growing concern due to its potential impact on online businesses and the digital economy. By illegally accessing and modifying the software on mobile phones, these criminals can steal sensitive information such as passwords, financial details, and personal data, which is then used for fraudulent purposes. This illegal activity undermines the security of e-commerce platforms and mobile banking systems, making businesses and individuals vulnerable to cybercrimes.
Cyber security experts warn that phone flashing and related cybercrimes have far-reaching implications for Uganda’s digital economy, especially as more businesses and consumers adopt online and mobile platforms.
The Police have warned both consumers and businesses to take additional precautions to safeguard their digital assets. Experts urge mobile phone users to install robust security features, such as encryption and two-factor authentication, to protect their data from such malicious activities.
As the cases progress, police said they remain committed to dismantling criminal networks that exploit technological vulnerabilities. The crackdown on phone flashing highlights the government's determination to secure Uganda's growing digital landscape and protect its citizens from cybercrime.
Uganda's financial assets under management (AUM) in the Collective Investment Scheme (CIS) market have hit an all-time high, reaching UGX 3.5 trillion (approximately US$ 945.4 million) as of September 2024.
This milestone, detailed in the Capital Markets Authority (CMA)'s latest quarterly bulletin, reflects a rising wave of interest among Ugandans in CIS as a structured, low-risk investment option.
The growth rate is remarkable, marking a 10.5% increase from UGX 3.18 trillion in June 2024 and a year-on-year jump of 54.1% from UGX 2.3 trillion (US$ 613.4 million) in September 2023. This surge underscores the growing appeal of collective investment as an accessible vehicle for wealth accumulation in Uganda.
Collective investment schemes or unit trusts, are investment funds that pool money from multiple investors to invest in a diversified portfolio of assets, such as stocks, bonds, and money market instruments.
Josephine Okui Ossiya, the CMA Chief Executive Officer, attributes the impressive growth to a blend of increased investor awareness and robust regulatory protections. “Ugandans are recognizing the benefits of investing through pooled savings vehicles,” Ossiya noted.
“The regulatory framework has instilled confidence among investors, who are assured of the protection afforded by investing in regulated financial products, such as CIS.” The confidence boost, Ossiya emphasized, has been a game-changer in attracting more participants to the market.
One factor behind this growth is Uganda’s National Social Security Fund (NSSF) midterm access program, which has allowed qualifying members to access part of their savings before retirement. The funds released through NSSF midterm withdrawals have channelled some investments into CIS, creating an opportunity for individuals to grow their savings with a diversified portfolio. This strategic reinvestment has driven CIS adoption and amplified the collective pool of assets.
At the end of September 2024, Government of Uganda bonds accounted for 63.3% of total AUM. The number of funded CIS accounts has risen to 103,950 by September 2024, a 12.8% increase from 92,165 in June 2024. This trend demonstrates that Ugandans from various economic backgrounds are joining the CIS sector in growing numbers. With many investors being first-time participants in Uganda's capital markets, CIS serves as an entry point, offering relatively low initial investment requirements and professional fund management.
Uganda’s CIS sector now stands as the second-largest in East Africa, trailing only Kenya, which boasts assets under management totalling US$ 1.97 billion. Uganda’s CIS assets account for approximately 2% of its GDP, comparable to Kenya’s 2% and significantly higher than Tanzania’s 1.2%. This ranking not only highlights Uganda’s growth within the East African capital markets but also signals the potential for further expansion, as awareness and accessibility improve.
Financial analysts credit the CMA’s regulatory efforts for much of this success. By setting stringent rules and maintaining oversight, the CMA has created a secure environment that encourages more Ugandans to invest. As investment literacy spreads and more people understand the benefits of diversification through CIS, the sector is projected to grow even further.
This surge in Uganda’s CIS market not only reflects rising investor confidence but also aligns with national economic goals. With assets at UGX 3.5 trillion, the sector is supporting financial inclusion, enabling individuals to save, invest, and secure their financial futures.
By expanding participation across socioeconomic levels, the CIS sector strengthens Uganda's financial foundation and creates an environment conducive to sustainable economic growth.
The future of Uganda’s CIS market appears bright, with CMA poised to introduce more investor education initiatives. "As more Ugandans learn about the structured opportunities CIS offers, we expect even broader participation," said Ossiya. "Our focus is to ensure transparency, security, and growth in Uganda’s capital markets for generations to come."
The investment schemes market in Uganda is dominated by UAP Old Mutual, Sanlam Investments, Britam Asset Managers, SBG Securities Limited and XENO.
Across Africa, Donald Trump’s forth-coming second term holds various implications for the continent and its development agenda. The United States remains an important partner in Africa’s growth. Through initiatives like the African Growth and Opportunity Act (AGOA) and the Millennium Challenge Corporation (MCC), the U.S. has sought to facilitate Africa’s integration into the global economy.
Additionally, the U.S. and its Western allies have had a significant influence on governance and democratic development across Africa. The democratization movements in many African countries during the early 1990s were partly fueled by strong pushes from the U.S. and its allies, who viewed bad governance and undemocratic regimes as key drivers of Africa’s political and economic challenges. The U.S. also hosts a large number of African migrants whose remittances are critical to economic growth and livelihoods back home. The African-American community plays an important bridging role in U.S.-Africa relations, and many African countries have sought to attract African-Americans to return and invest in the continent.
Beyond the direct relationship between the U.S. and Africa, the performance of the U.S. economy is crucial to developing markets like those in Africa. U.S. Federal Reserve policy decisions can significantly affect how African countries access international capital markets and service their dollar-denominated debts. Meanwhile, the U.S. military and intelligence agencies continue to play key roles in addressing insecurity in many parts of Africa, despite recent pushbacks in countries like Niger, Mali, and Burkina Faso.
Indirectly, U.S. foreign policy elsewhere—including its approach to China and the Middle East—will affect global stability, which is essential for Africa’s development. It also influences the so-called "new scramble" for Africa among powers such as China, Russia, the U.S., and European nations.
A foreign policy shift under Trump, likely to emphasize an "America First" approach, could further fragment global markets. Such developments may accelerate the institutionalization and expansion of alternative global structures like BRICS, which challenge the U.S.-led world order. All of these changes will have significant consequences for Africa. In all fairness, a second Trump presidency presents mixed implications for Africa. Some of these implications are highlighted below.
1. Funding to Africa to remain consistent, but cuts likely in areas like Climate Change Financing
During his first term, Trump was accused of neglecting Africa. However, despite this criticism, the U.S. still provided an annual average of $7-8 billion in funding to the continent. In comparison, the Biden administration promised to reset U.S.-African relations on a foundation of equal partnership, pledging around $55 billion in funding to Africa over three years, beginning in 2022.
However, a recent U.S. Congressional Research Service report (November 7, 2023) on non-humanitarian State Department and USAID assistance to Africa showed that, despite Biden’s more friendly African foreign policy posture, U.S. funding to the continent remains within the $7-8 billion range annually. Therefore, it is likely that funding under a second Trump presidency will remain consistent with this trend. However, areas like climate change financing may face cuts, as the Trump administration is likely to scale back on many of the Biden-era commitments related to climate funding. The Biden administration’s plan to increase aid under the $55 billion initiative may not materialize, as Trump and the Republican Party will likely reprioritize funding areas according to their own strategic interests.
2. Trade and investment present an uncertain and complicated dynamic
Trade and investment are areas where Trump presents a more complex and uncertain dynamic for Africa. While U.S.-Africa trade and investment relations had advanced during Biden’s term, these gains may face setbacks under Trump, who is likely to focus on areas that align with his "America First" approach to foreign policy. As a result, efforts by the Biden administration to enhance trade and investment with Africa could be watered down or reversed.
This creates a mixed picture for the continent, with countries that align with U.S. strategic interests likely to be prioritized over others. With the current AGOA set to expire in September 2025, its future is uncertain, adding further complexity to trade relations. Trump may use the renegotiation of AGOA to advance U.S. strategic interests on the continent. Additionally, the implementation of the African Continental Free Trade Area (AfCFTA) could complicate matters for the Trump administration. A successful AfCFTA could make the African market strategically important to the U.S., especially if the trade war with China intensifies.
3. Uncertainty in U.S. role promoting Good Governance and Democracy
There is little doubt that the U.S. has been a leading force in promoting governance and democratic reforms in Africa since the fall of the Berlin Wall and the end of the Cold War. Under the Biden administration, the U.S. has used a combination of aid, sanctions, and diplomatic pressure to address democratic backsliding across the continent.
Despite Biden’s ideological commitment to democracy, there were occasions when American interests took precedence over promoting democratic values. For example, the Biden administration took over three months to recognize the military coup in Niger in 2023, which led to the suspension of military aid in accordance with U.S. law.
A second Trump administration is likely to further prioritize U.S. national security interests over ideological promotion of democracy. Trump could use the waiver provision in the 2023 Consolidated Appropriations Act to engage military regimes that align with U.S. interests. This would likely lead to more inconsistent U.S. engagement in Africa, with a more pragmatic, interest-driven approach replacing the promotion of democracy and good governance. This could make efforts to consolidate democracies in Africa more challenging, especially in light of the current backsliding in several countries.