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Uganda's private sector showed signs of recovery in February, after a temporary slowdown at the start of the year, the Stanbic Bank Purchasing Managers’ Index (PMI) has shown.
The report shows that the PMI climbed to 52.6, up from 49.5 in January, indicating an improvement in the business environment.
The Purchasing Managers' Index (PMI) is an important economic indicator that provides valuable insights into the health and direction of an economy, and is widely followed by economists, policymakers, and investors, as an important tool for investors and policy-makers to make informed decisions.
Speaking at the February PMI dissemination event in Kampala recently, Christopher Legilisho, an economist at Stanbic Bank, said the private sector regained momentum as both output and new orders surged after dipping in January
“The Uganda PMI for February shows a private sector back in expansion, with both output and new orders growing robustly. There was strong demand across all sectors. Employment in the private sector accelerated again after three months of decline due to increased new orders, while backlogs fell because of sufficient capacity. Purchasing activity was elevated as firms factored in output having recovered convincingly, but inventories fell for the first time in 12 months,” Legilisho explained.
The February survey attributes the renewed expansion to increased demand and new business orders, prompting firms to raise input purchases and staffing levels.
New orders resumed growth, reversing January's dip and continuing an upward trend seen since April 2024. Employment levels rose, ending a three-month period of job cuts.
However, the manufacturing sector was the only one to record a drop in employment. Stronger demand led to broad-based output growth across all sectors.
The Stanbic PMI is compiled by S&P Global, based on responses from approximately 400 purchasing managers across various sectors including agriculture, mining, manufacturing, construction, wholesale, retail, and services.
The index is calculated using weighted averages of key indicators: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), Stocks of Purchases (10%).
A PMI reading above 50.0 signals economic expansion, while below 50.0 indicates contraction.
Despite the overall improvement, Ugandan firms faced higher cost burdens due to increased purchase prices and wage bills. As a result, businesses raised their output prices for the sixth consecutive month to offset rising expenses.
“There were pricing pressures related to input and purchasing prices as utility bills and selected commodity prices increased. Staff costs and output prices continued to rise, though at a slower pace. The private sector remains highly optimistic about future output, although optimism has slightly dipped since January. The February PMI suggests durable economic conditions in the private sector,” Legilisho noted.
Panellists highlighted that customer acquisition played a crucial role in boosting new orders. Increased employment levels helped reduce backlogs of work, allowing firms to meet demand more efficiently.
However, higher business expenses, particularly in utilities and raw materials, remain a challenge.
With confidence levels still high despite a slight decline in optimism, Uganda’s private sector is positioned for continued growth, provided cost pressures remain manageable and demand remains strong.
In a bold step towards bridging the digital divide, MTN Uganda has provided ICT equipment worth UGX 20 million to the 40 Days Over 40 Smiles Foundation., a youth development focused local NGO.
This donation will boost digital literacy and learning opportunities for underprivileged children, equipping them with the necessary tools to thrive in today’s digital world.
This donation will boost digital literacy and learning opportunities for underprivileged children, equipping them with the necessary tools to thrive in today’s digital world.
Speaking at the handover event, Augustine Lule, MTN’s Regional Business Manager for Kampala, underscored MTN Uganda’s dedication to transforming communities through technology and education.
“At MTN Uganda, we are committed to ensuring that no child is left behind in the digital revolution,” he said.
“Through the MTN Changemakers initiative, we continue to support organizations that drive meaningful change at the grassroots level. This donation is not just about equipment; it is about unlocking potential, fostering innovation, and creating opportunities for Uganda’s youth.”
The MTN Changemakers initiative, launched in 2023 as part of MTN Uganda’s 25-year anniversary celebrations, was established to empower community-led projects focusing on economic empowerment, education, health, water, and environmental conservation. In December 2024, MTN Uganda announced 25 beneficiaries for the second cohort, with a total funding commitment of UGX 500 million.
MTN Uganda has already extended support to several other impactful organizations, including Bless A Child Foundation in Kampala, which supports children with cancer.
Other projects set to benefit from this initiative include Teens & Tots Neuro Centre in Kira, Kalangala Home for Children with Special Needs, Uganda Prisons Bushenyi Carpentry Project in Kalangala, Protected Springs in Lira, and the Soroti Clean Water Extension Project in Soroti, among others.
The 40 Days Over 40 Smiles Foundation, a leading advocate for literacy and education among underprivileged children, expressed its gratitude for MTN Uganda’s support.
Penninah Nabirye, the fundraising and partnerships head, who spoke on behalf of Esther Kalenzi, Founder and Team Lead at 40 Days Over 40 Smiles Foundation, highlighted the significance of the donation.
“This partnership with MTN Uganda is a major boost to our efforts in improving literacy and access to education. With these digital tools, children from disadvantaged backgrounds can now learn, explore, and develop crucial skills needed for the future. We deeply appreciate MTN’s commitment to education and community empowerment.”
The initiative was also lauded by Sharifah Ahimbisibwe, the Local Council III, who emphasized the importance of digital literacy in today’s educational landscape.
“Access to technology has now become normal. This contribution from MTN Uganda will go a long way in equipping our children and teachers with the skills required to compete in a rapidly evolving world. We encourage other organizations to take similar steps in supporting digital learning.”
Last year, during the initial phase of MTN Changemakers initiative, MTN Uganda supported the implementation of 25 projects across the country with a total investment of UGX500 million.
Uganda’s monthly headline inflation surged to 0.6% in February 2025, doubling from 0.3% in January, according to the latest data from the Uganda Bureau of Statistics (UBOS). The increase was primarily driven by rising prices of key food items, including tomatoes and fresh leafy vegetables.
Other notable contributors to inflation included fresh cassava, which saw its price rise from 2.5% in January to 4.1% in February, and dry beans, which increased from 0.4% in January to 2.8% in February.
In actual market prices, a kilogram of tomatoes that cost UGX2,576 in January is now selling for UGX 2,813, while green pepper prices jumped from UGX 2,267 per kilogram to UGX 3,261. Fresh tilapia, previously priced at UGX 16,098 per kilogram, now costs UGX17,231.
Responding to the price hikes, Samuel Echoku, a microeconomic statistician at UBOS, attributed the fluctuations to market dynamics. “All is determined by demand and supply, and most of these products are seasonal. The recent increases are largely due to reduced supply following unfavorable weather conditions in major food-producing regions,” Echoku said.
The annual headline inflation for the year ending February 2025 increased to 3.7%, up from 3.6% recorded in January 2025. However, annual core inflation, which excludes volatile food and energy prices, slowed to 3.9% in February from 4.2% in January.
Additionally, the monthly inflation for the construction sector increased by 0.2% in January 2025, compared to 0.1% recorded in December 2024. This was attributed to rising costs in the construction of buildings and civil engineering works. Materials that saw significant price increases included sand, cement, aggregate, hardcore, and broken stone, while price declines were noted in iron, steel rods, and angles.
In general terms, 2024 was good for the business sector, thanks to the relatively better macro-economic environment.
The country’s macroeconomic indicators held steady in the year with an average GDP growth of 6.6%, while the average headline inflation moderated to 3.3% in 2024, from 5.5% in 2023, and tracked below the 5.0% Central bank target.
Additionally, the local currency appreciated by 2.7% against the US Dollar in 2024, anchored by reforms in the interbank foreign exchange market, which have promoted currency stability.
Economists caution that if inflationary pressures persist in 2025, consumers may continue to experience increased costs of living, which may affect aggregate spending. Policy interventions to stabilize food production and supply chains would therefore be crucial in mitigating further price surges.
Economist Fred Muhumuza told this publication that inflation in Uganda is largely driven by structural challenges in the economy.
“The persistent inflationary pressures are not just about external shocks but also domestic inefficiencies, such as post-harvest losses and inadequate market infrastructure. Addressing these issues requires long-term investment in value addition and improved storage facilities,” Muhumuza explained.
With inflation trends showing fluctuations, policymakers and economists remain watchful of external and internal factors influencing Uganda’s economy. The government’s ability to manage inflation will be critical in maintaining economic stability and ensuring sustainable growth.
Last month, the Bank of Uganda (BoU) decided to maintain the Central Bank Rate (CBR) at 9.75%, saying the near-term inflation outlook was largely contained, though external uncertainties continue to pose risks to economic performance.
BoU Governor Michael Atingi-Ego explained that the Central Bank anticipated core inflation to stay within a 4%-5% range over the course of 2025, but global uncertainties continued to present a clear risk to the forecast.
In what CEO Sylvia Mlinge describes as a “landmark year for MTN Uganda,” the telecommunications giant recorded significant gains across all areas of its business amidst a dynamic operating environment.
According to the company’s audited financial results for the year ended December 31, profit after tax shot up by almost UGX150 billion - rising to UGX641.5 billion from UGX493 billion in 2023.
As expected, data revenue registered the biggest growth margin of 30% (UGX811 billion), followed by Mobile money at about 25% compared to 2023.
Total subscriber numbers also surged – topping 22 million, indicating a growth of about 13% year on year. Consequently, the company will pay a final dividend of UGX8.5 per share, amounting to a total of UGX190.3, billion, payable to shareholders on June 20, 2025.
That implies that the full year dividend for the year would amount to UGX22.6 per share, a total payout of UGX506 to the company’s shareholders, making MTN one of the most profitable listed companies in the country.
Speaking at a press briefing at their headquarters in Kampala, the visibly elated CEO Sylvia Mulinge attributed the company’s success in 2024 to a solid commercial execution and a conducive economic environment, including an average GDP growth of 6.6%, average headline inflation moderated to 3.3% in 2024, from 5.5% in 2023, and the stability of the Uganda shilling, which appreciated by 2.7% against the US Dollar in 2024.
”In this context, MTN Uganda sustained a positive trajectory across all business segments in 2024, registering double-digit growth across all revenue lines,” she said.
Mulinge, who scooped the coveted CEO of the Year Award for 2024 at the MTN annual awards, added that the growth was delivered as a result of the company’s focused investments in the network totaling UGX418 billion particularly in respect to 4G and 5G network. The number of the company’s 5G sites has now reached 538, up from just 37 in 2023.
MTN Uganda is currently rated as Uganda’s leading tax payer, remitting a total of UGX1.3 trillion in direct and indirect taxes, thus affirming its commitment to Uganda’s social-economic development.
The MTN Group, which has a presence in 18 countries, is set to declare the Group annual results on March 17, and revenue is widely expected to surpass the USD11 billion recorded in 2023.
Andrew Bugembe, the MTN Uganda Chief Finance Officer – arguably Uganda’s leading ‘numbers guy’ – insisted on “letting the company’s numbers for 2024 to do the talking.”
Indeed, Bugembe told journalists at the briefing that unlike in the past when Uganda used to be put in the categories of ‘others,’ the Ugandan market is now the fourth biggest contributor to Group revenue.
2025 being an election year, many multinational companies are usually cautious with their investment decisions. However, Mulinge said they would focus on concluding the structural separation of the fintech business as part of their portfolio transformation strategy - aimed at allowing them to align with regulatory obligations, scale faster and unlock further value for the shareholders through third-party partnerships and collaborations.
Richard Yego, the MTN MOMO CEO, said they are excited by the performance but they are also actively working on a plan to reduce prices for the benefit of their 20 million customer base, aimed at ensuring affordability across the board.
He said they are committed to bridging the digital divide and furthering financial inclusion and to create a marketplace that supports cashless and digital economies through affordable and inclusive financial services, in collaboration with commercial banks and dozens of payment companies that are already on the network.
Mulinge said that through the MTN Foundation, the company would continue to focus on bridging the digital divide - providing digital learning tools and supporting educational infrastructure to empower the next generation of leaders within these communities.
Entries are now open for the Africa Talent Leather Design competition —a premier platform for Africa’s designers to showcase their creativity in leather products design and commitment to sustainable fashion.
The competition, which started receiving entries on March 3, is organized by the Leather & Hide Council of America (L&HCA) and the Africa Leather and Leather Products Institute (ALLPI), according to a recent press release.
There will be winners in the three categories of apparel, accessories, and footwear.
Submissions will close on June 6, 2025 and selected designs will be announced on July 2, 2025 then the designers will be invited to submit the physical products, which must be comprise at least 50% cowhide leather.
“Now in its third year, the Africa Talent Leather Design Showcase serves as a transformative platform promoting leather as the material of choice for a sustainable future,” the statement said.
The organisers aim to champion the principles of slow fashion across the continent while showcasing Africa’s outstanding design talent.
Over the past five years, the campaign has engaged over 7,500 students from 720 universities across 48 countries, fostering innovation, responsible material use, and slow fashion advocacy – basically celebrating leather’s beauty, versatility, strength and durability, and providing a platform for designers to showcase their creativity while embracing sustainability.
By recognizing and rewarding innovation, the event serves as a launch-pad for designers to build their careers and their businesses in the leather industry.
“The Real Leather. Stay Different. Africa Talent Leather Design Showcase 2025 champions leather as the material of choice for a sustainable future, providing designers across Africa with the skills, exposure and platform to harness its beauty, versatility and durability. Now is Africa’s time to lead in creating ethical, high-quality leather products and shaping the future of sustainable fashion,” said Nicholas Mudungwe, the Executive Director of Africa Leather and Leather Products Institute.
The winners will be awarded in December 2025.
At last year’s event, Uganda’s Eddie Louis Ochom won the apparels category, with his Contemporary Leather Armour Collection - a bold fusion of Ugandan heritage and modernity.
The Africa Leather and Leather Products Institute (ALLPI) is a specialized intergovernmental organization under COMESA, dedicated to advancing the leather and leather products value chain across Africa. Headquartered in Addis Ababa, Ethiopia, ALLPI serves as a hub for innovation, research and policy advocacy to enhance the sector’s competitiveness and sustainability.
The institute provides technical support, capacity building and technology transfer to member states, empowering SMEs and fostering value addition. ALLPI champions environmental sustainability, promotes regional trade harmonization and strengthens integration through collaboration with stakeholders across the continent.
By addressing key challenges and unlocking opportunities in the leather industry, ALLPI contributes to job creation, economic growth and Africa’s global competitiveness.
Its work aligns with Africa’s vision for industrialisation and sustainable development, positioning leather as a key pillar for regional transformation.
MTN Uganda, through its MTN Foundation, has donated a fully equipped computer laboratory to Revival Girls High School in Mbarara City, as part of its digital transformation agenda.
This initiative, part of MTN’s Digital Access Program worth Shs1 billion, aligns with Uganda’s Vision 2040, the country’s Digital Transformation Roadmap, and the United Nations Sustainable Development Goals (SDGs), particularly SDG 4 (Quality Education), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 10 (Reduced Inequalities).
The newly established computer lab would benefit more than 195 students, providing them with access to ten desktop computers, a 24-hour power backup system, and one year of free internet connectivity - all valued at Shs70million.
This follows the recent provision of a similar number of computers and other assorted equipment to St. Francis Primary School for the Blind in Soroti, reinforcing MTN Uganda’s commitment to bridging the digital divide.
Additional schools set to receive computer labs under this initiative include; Iganga Secondary School, Kisoro Demonstration Primary School, Nvara Secondary School in Arua, and Ngetta Girls Primary School in Lira.
Speaking during the handover ceremony, Fazil Ddamulira, Regional Business Manager for South Western Uganda for MTN Uganda, said, "Access to technology is not just an advantage—it is a necessity. At MTN, we believe in leveraging digital tools to empower communities, and through the Digital Access Program, we are creating opportunities for students to develop critical skills for a sustainable future."
Mbarara District Chairperson Didas Tabaro said that the new computers and free internet will empower learners to harness technology for development.
“MTN Uganda has done a wonderful thing for this institution, and we expect learners to make proper use of these facilities to broaden their knowledge,” he said.
He added, “Due to limited funds, the government has not been able to equip all schools with ICT materials like computers; however, they are implementing these initiatives in phases.”
The school administration acknowledged the impact of the initiative. “Revival Girls High School has long needed such resources to enhance our students’ learning experience,” said Clare Gumoshabe, the head teacher.
“This lab will provide our learners with access to technology that will broaden their knowledge and prepare them for future opportunities.”
Students expressed their excitement about the new learning tools. “[These computers will help us with research, improve our studies, and introduce us to new opportunities in ICT,” said jackline Katushabe, a Form Four student, who also doubles as the school’s head girl.
The development comes at the time when the Uganda government is ramping up efforts to ensure digital access for students, with a plan to establish computer labs in all public secondary schools.
The Uganda Communications Commission (UCC) said it has already installed over 1,000 labs nationwide. But with more than 70% of the population under 30 years of age, the demand for digital skills far outstrips the current supply.
Youth unemployment remains a pressing issue, with rates hitting 16.3%, compared to the national average of 11.7%, according to the Ministry of Gender, Labour, and Social Development. Young women, in particular, face added barriers to accessing quality education and digital skills, limiting their career prospects.
MTN Uganda has now provided 63 computer labs to educational institutions, vocational centers, and public learning spaces across the country, including those in partnership with organizations such as Sense International Uganda, Promoting Equality in African Schools, and Enabel.
Uganda’s export sector recorded impressive growth in December 2024, with merchandise exports increasing by about 14% according to the January 2025 Performance of the Economy Report released by the Ministry of Finance, Planning and Economic Development.
The report shows that the December exports rose to about USD722 million (UGX 1.92 trillion) up from USD634 million in December 2023, primarily fuelled by higher earnings from coffee, mineral products, sesame (simsim), fish, and related products.
The growth trend was also evident on a month-to-month basis, with exports increasing by 7.3% from USD 672.62 million in November 2024.
Alongside export growth, investor confidence in Uganda’s economy remained strong, as reflected in the Business Tendency Index (BTI), which stood at 58.10 in December 2024 well above the 50-mark threshold that signals optimism.
This indicates that investors and business owners expect continued economic expansion over the next three months.
Similarly, the Composite Index of Economic Activity (CIEA), a measure of economic performance, recorded a 0.2% increase, rising from 168.0 in November to 168.4 in December 2024. This uptick reflects resilience in economic activity despite external pressures.
Meanwhile, borrowing costs for businesses declined as the weighted average lending rates for Shilling-denominated credit fell from 18.08% in November 2024 to 17.37% in December 2024.
This reduction was driven by a gradual easing of monetary policy and an increase in lending to prime corporate borrowers, who secured lower interest rates due to their reduced credit risk.
Despite the strong export performance, Uganda’s import bill topped USD1.052 billion (about UGX 3.84 trillion) in December 2024.
The increase in imports was mainly attributed to a higher demand for vegetable and animal products, beverages, fats and oils, base metals, plastics, rubber, prepared foodstuffs, and tobacco.
Asia continued to dominate Uganda’s imports, accounting for 37.4% in December 2024. China and India were the leading suppliers, contributing 50.8% and 21.0% of Uganda’s imports from Asia, respectively.
Other major sources of imports included the East African Community (EAC), the rest of Africa, and the Middle East, which accounted for 22.6%, 17.4%, and 11.3% of total imports, respectively.
Within the EAC, Tanzania and Kenya were Uganda’s top trading partners, supplying 69.8% and 26.1% of Uganda’s imports from the region, respectively.
Uganda’s export sector is showing promising resilience and growth, fuelled by agriculture, minerals, and fisheries. The strong performance of business confidence indicators and lending rate reductions further supports the country’s economic outlook.
However, the trade deficit remains a challenge due to higher import volumes. To sustain economic progress, the government and private sector must focus on expanding domestic production, increasing value addition, and reducing reliance on imports.
With continued policy support and investment in export-oriented industries, Uganda’s trade balance could improve, ensuring sustainable economic growth in the long run.
The Auditor General has raised concerns about the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project, a key initiative aimed at empowering women entrepreneurs, which he says has recorded a low uptake of funds.
According to the Auditor General, Edward Akol, only 21% of the disbursed funds for the financial year ending June 30, 2024, were utilized. Out of the total UGX52.18 billion allocated, only UGX10.96 billion was expended, leaving an unspent balance of UGX41.22 billion still sitting in the project’s bank accounts.
The report highlights significant delays in key project activities, such as the development of operational manuals and the recruitment of staff, which the project’s management also acknowledged in an interview with this publication.
The Ministry of Gender, Labour, and Social Development (MoGLSD), which is overseeing the project, has also failed to conduct training and sensitization sessions for the intended beneficiaries.
These delays have directly contributed to the low absorption of funds, preventing many female entrepreneurs from accessing the financial resources needed to grow their businesses.
Ruth Biyinzika Kasolo, the Project Coordinator, told this publication in an interview that steps are being taken to address the concerns.
“We understand the frustration that some beneficiaries are facing due to the delays. However, we have now finalized the curriculum, and training will commence in February 2025. This will ensure that women entrepreneurs are well-equipped with the necessary skills to effectively utilize the funds and grow their businesses,” she stated.
The GROW project, which is funded by the World Bank to the tune of USD217 million, aims to support over 60,000 female-owned enterprises across Uganda, with a focus on both refugee and host communities.
The project, which became effective in January 2023, targets to benefit 280,000 women entrepreneurs and employees, including 42,000 refugees. Additionally, it aims to reach over 1.6 million indirect beneficiaries.
A beneficiary, Sarah Nakyobe, a small-scale trader in Kampala, expressed her disappointment with the slow rollout. “I applied for the funds months ago, but due to the delays, I haven’t received the necessary support to expand my business. I hope the upcoming training and sensitization will fast-track the process and help women like me access the financial aid we need,” she said.
In light of the low uptake, the Auditor General has urged the accounting officer to expedite the training and sensitization programs.
“I advised the Accounting Officer to expedite the training and sensitization programs to ensure that the beneficiaries can apply and thereafter utilize the funds for their enterprises,” Akol stated.
This advice aims to ensure that the funds can be fully utilized to help women entrepreneurs build and expand their businesses, ultimately driving growth and economic empowerment in the country.
The GROW project holds the potential to significantly improve the livelihoods of women entrepreneurs, especially in marginalized communities, but its success depends on the swift and effective implementation of these key activities.
The Uganda Registration Services Bureau (URSB) has launched an initiative whose objective is to equip entrepreneurs and corporate entities with essential skills in financial literacy, corporate governance, and business management to enhance business sustainability.
The launch of the initiative dubbed, Corporate Rescue and Aftercare Support Program 2024/2025, aligns with Uganda’s National Development Plan (NDPIII) goal of fostering private sector development by preventing insolvency and supporting business recovery.
According to the 2016 Global Entrepreneurship Monitor (GEM) Report, Uganda was ranked among the world’s most entrepreneurial countries. However, it also recorded one of the highest business failure rates, with one business closing for every new one started.
This alarming trend is attributed to inadequate business management skills, financial illiteracy, weak corporate governance, and external shocks such as the COVID-19 pandemic, which saw over 40% of SMEs, struggle to recover. Additionally, a 2023 World Bank Report indicates that 70% of Ugandan businesses lack proper financial planning, contributing to high failure rates.
Speaking at the launch in Kampala, James Bulenzibuto, the Chief Executive Officer of Elimu Trust Eastern Africa, emphasized the importance of taking action before businesses fail.
"We are not here just to build CVs. We are here because the Directorate believes in proactive solutions, not post-mortems for failed businesses. Let’s change the narrative. Ask your questions, we are here to equip you for success," he said.
The program would encourage participants to fully engage in discussions and training sessions to develop strategies that will help their businesses thrive.
Barbara Kasekende, the Head of the Advisory Department at Uganda Development Bank (UDB), stressed the importance of responsible borrowing.
"Debt should be an enabler, not a burden," she said.
“Before taking on debt, business owners are advised to carefully assess their financial situation by asking: Is my business unprofitable? Is my business still too young? Have I not yet invested my own money? "If the answer to any of these is yes, reconsider. Smart borrowing fuels growth whereas reckless debt sinks businesses," she added.
A press release said that since 2016, the Official Receiver has organized multiple insolvency conferences targeting key stakeholders such as judicial officers, insolvency practitioners, bankers, regulators, and policymakers. Building on this foundation, the Corporate Rescue and Aftercare Support Program is a proactive effort to empower business owners with practical skills necessary for financial stability and sustainable growth.
The program will focus on enhancing business financial management and literacy, training participants on corporate governance best practices, providing practical business management strategies for growth and survival among others.
The program is designed for a wide range of participants, including, entrepreneurs and business owners, boards of corporate entities, regulators and policymakers, academia and business educators.
With over 500,000 new businesses registered annually in Uganda, and an estimated 50% failing within the first two years, this initiative aims to promote a culture of resilience and strategic business management.
The Directorate of Insolvency and Receivership is committed to ensuring that more Ugandan businesses survive and thrive in the ever-evolving economy, fostering long-term economic growth, the release added.
Makerere University’s College of Agricultural and Environmental Sciences has launched a facility dubbed the Agricultural Policy Research Center with the aim of bridging the critical gap between research and policy, ensuring that agricultural policies are informed by research and to provide objective, evidence-based solutions to the challenges within Uganda’s agricultural sector.
Speaking at the launch of the facility on February 24, Stephen Byantwale, the Commissioner for Crop Protection, at the Ministry of Agriculture, Animal Industry and Fisheries, highlighted its like impact on boosting the agricultural sector, which is the backbone of Uganda’s economy.
“Agriculture remains the cornerstone of Uganda's economy, contributing approximately 24% of the GDP, employing nearly 68% of the population, and generating over 35% of export earnings. However, despite its immense potential, the sector faces persistent challenges, including climate change effects, low productivity, constrained value addition, limited market access, inadequate financial support, and policy gaps,” Byantwale noted.
He emphasized that the APRC would play a pivotal role in bridging the gap between research and policymaking, ensuring that Uganda’s agricultural policies are responsive, timely, and transformative.
“For too long, policy decisions in the agricultural sector have been made without sufficient reliance on empirical data. This has led to inefficiencies in resource allocation, limited uptake of modern farming technologies, and inadequate implementation of key development programs,” Byantwale added.
Prof. Gorretti Nabanoga, the Principal of th College of Agricultural and Environmental Sciences (CAES), also emphasized the significance of APRC in transforming Uganda’s agricultural sector.
“We are mindful that the agricultural sector continues to face persistent challenges, including low productivity, market inefficiencies, and gaps in policy implementation. The launch of APRC is yet another innovation to support government efforts in addressing these challenges. We perceive this initiative as a game-changer in ensuring that scientific research directly shapes national agricultural policies, investments, and programs,” Nabanoga stated.
Prof. Nabanoga reaffirmed the university’s commitment to ensuring that impactful policies are research-driven.
“For Uganda to achieve food security, economic transformation, and environmental resilience, agricultural policies must be grounded in credible, data-driven insights. APRC is designed to bridge the critical gap between research and policymaking,” she said.
Additionally, APRC will work closely with government ministries, development partners, private sector players, and civil society organizations to translate research findings into actionable policies. The center is expected to empower farmers, agribusinesses, and policymakers with evidence-based solutions to drive agricultural growth and economic development.
Officials and researchers were in agreement that the launch of APRC marks a significant step toward positioning Uganda’s agriculture sector for sustainable development, leveraging research to inform decisions that enhance productivity, market efficiency, and overall sector resilience.
By bridging the gap between research and policy, the Centre is set to become a key driver of sustainable development in Uganda’s agri-business industry.
The APRC is a collaborative initiative between Makerere University’s College of Agricultural and Environmental Sciences (CAES) and the Office of the President.
It envisions a future where research evidence drives policy decisions, fostering sustainable agricultural development in Uganda. Its core mission is to conduct, coordinate, and disseminate high-quality policy research, offering innovative solutions tailored to the realities of Uganda’s food systems.
By linking research outputs with policy actions, the Centre will play a pivotal role in advancing Uganda’s agricultural transformation agenda.
MTN Uganda, through its philanthropic arm, MTN Foundation, is stepping up its digital literacy efforts, reinforcing its role in bridging the country’s digital divide.
So far, the Foundation has equipped 63 schools across Uganda with advanced computer labs, providing students with the skills they need to compete in an increasingly digital economy.
The initiative aligns with Uganda’s Vision 2040, the country’s Digital Transformation Roadmap, and global development priorities, including the UN Sustainable Development Goals on education, gender equality, and reducing inequalities.
MTN’s digital push is also a key pillar of its Ambition 2025 Strategy, which focuses on expanding digital and financial inclusion.
Beyond the labs, the MTN Internet Bus— a mobile digital learning centre—has provided hands on training to more than 50,000 young people in underserved communities.
Additional programs, such as the MTN Skills Academy, MTN Ace, and MTN Girls in Tech, have further enhanced digital literacy, improved employability and fostering entrepreneurship.
“Digital literacy is no longer optional—it’s a necessity,” said Bryan Mbasa, Senior Manager at MTN Foundation Uganda. “We want to give young Ugandans the tools they need to unlock opportunities in education, business, and the job market.”
This development comes at the time Uganda’s government is ramping up efforts to ensure digital access for students, with a plan to establish computer labs in all public secondary schools. The Uganda Communications Commission (UCC) said it has already installed over 1,000 labs nationwide.
But with more than 70% of the population under 30, the demand for digital skills far outstrips the current supply.
Youth unemployment remains a pressing issue, with rates hitting 16.3%, compared to the national average of 11.7%, according to the Ministry of Gender, Labour, and Social Development.
Young women, in particular, face added barriers to accessing quality education and digital skills, limiting their career prospects.
For schools already benefiting from MTN’s support, the impact is tangible. For instance, at St. Catherine Girls Secondary School in Kazo District, which has a population of over 500 students, Head Teacher Sr. Assumpta Mayar said the new computer lab is a game-changer. “This is more than just a donation—it is an investment in the future of our students. It will help them develop skills that are crucial in today’s world.”
Gulu High School’s Head Master, Nobert Tommy Ocen, echoed similar sentiments, calling on stakeholders to ensure the sustainability of the ICT facility. “This is an opportunity that we must protect and use wisely,” he said.
Meanwhile, students at St. Francis Primary School for the Blind in Soroti see the modern technology as a transformative tool. “These computers will help us transcribe our work, making learning and research easier,” said Francis Wamimbi, a P7 student.
Mbasa said MTN Uganda’s goal is not just to distribute technology but to drive long-term impact. “We’re not just installing computer labs—we’re fostering innovation, critical thinking, and collaboration,” Mbasa said. “That’s what the future demands.”
He said the company would continue to expand its digital literacy programs, working with government agencies, private sector partners, and local communities to ensure that no one is left behind.
The Uganda Revenue Authority (URA) has reported a 10% decline in tax objections filed during the 2023/2024 financial year - reducing from 45% to 35%.
This improvement is attributed to proactive measures undertaken by the authority to refine tax assessments and enhance dispute resolution mechanisms.
In the previous financial year, URA recorded 19,970 tax objections, with disputed amounts totaling UGX 207.5 billion and the discharged amount reaching UGX253.7 billion.
The discharge rate stood at 35%, with an average resolution period of 57 days. Disputed cases were resolved through three possible outcomes: disallowance, approval, or partial resolution.
Ruth Anne Agwang, URA’s Manager of Objections, credited the reduction in objections to the authority’s commitment to stakeholder sensitization and improved feedback mechanisms.
“We are committed to enhancing the accuracy of assessments,” Agwang stated, emphasizing that URA is working to prevent erroneous claims arising from misinterpretations of facts or tax laws.
According to Agwang, the most frequent causes of tax objections include discrepancies from unreconciled audit findings, limited awareness of tax obligations, and varying interpretations of tax laws.
The most commonly disputed taxes include Income Tax, Value Added Tax (VAT), Pay As You Earn (PAYE), local excise duty, and withholding tax.
Agwang also stressed the importance of filing accurate tax returns. “We urge taxpayers to ensure their filings genuinely reflect their business operations,” she noted.
For disputes escalating to legal proceedings, Agwang advocated for out-of-court settlements.
“These resolutions not only save time and resources but also create mutually beneficial outcomes for both taxpayers and the authority,” she explained.
Uganda’s legal framework governing tax objections and appeals includes the Tax Procedures Code Act 2014, the East African Community Customs Management Act 2004, and the Tax Appeals Tribunal Act, Cap 345. Under current regulations, taxpayers have 45 days to file an objection if dissatisfied with an assessment.
If unresolved, they can seek alternative dispute resolution or escalate their appeals to the Tax Appeals Tribunal, the High Court, the Court of Appeal, and ultimately, the Supreme Court.
By advocating for amicable settlements and encouraging accurate tax reporting, URA aims to expedite dispute resolution, ensuring efficiency and compliance for both taxpayers and the authority.
Uganda’s Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, has invited French investors to explore Uganda’s lucrative business environment, emphasizing the country's generous incentives and high return on investment.
Speaking at the on-going Uganda-France Economic Forum in Paris recently, Ggoobi underscored Uganda’s attractiveness to foreign investors, citing a 14% RoI one of the highest in the world.
He also highlighted that in 2023, Uganda was ranked the third most rewarding economy for investment in Africa.
“Our macroeconomic environment is stable, with low and predictable inflation, sustained GDP growth, and the most stable local currency in Africa over the past decade. The capital account is fully liberalized, allowing for 100% profit repatriation after tax,” Ggoobi stated, according to a press release.
He reassured investors that the Ugandan government is pro-private sector, offering an array of incentives such as free land for industrial development, subsidized power tariffs, and comprehensive business support services. He further noted that Uganda boasts the lowest labor costs in the region and provides unrestricted foreign ownership of projects.
With Uganda’s strategic position, investors benefit from duty-free and quota-free access to vast regional and global markets.
“Uganda’s weather is one of the best in the world, providing a natural advantage for agricultural and industrial investments,” Ggoobi added.
France has recently strengthened its economic ties with Uganda, with French companies committing $4 billion (UGX 15 trillion) in investments for 2025.
Meanwhile, Robert Mukiza, the Executive Director of the Uganda Investment Authority, highlighted investment opportunities for Ugandans in the diaspora. “We are introducing new non-tax incentives and collaborating with the Bank of Uganda on a Diaspora Bond to facilitate investment,” he said.
Abel Kagumire, Commissioner for Customs at the Uganda Revenue Authority, also briefed attendees on tax incentives available for diaspora investors, including duty-free importation of personal effects and investment-related equipment upon return.
“With Uganda’s conducive investment climate, robust incentives, and strong economic partnerships, the country remains a prime destination for French and global investors looking to maximize returns,” he added.
Musa Lukwago, a resident of Kyengera on the outskirts of Kampala, started his delivery business in 2016. For a while, business was good—until he began receiving orders that required him to have a reliable means of transport.
Determined to meet customer demand, Musa set out to buy a motorcycle. However, with limited savings, he could only afford a second-hand motorbike. What seemed like a cost-effective decision quickly turned into a financial burden as frequent breakdowns drained his earnings.
“That bike had an engine problem, and no matter how many times I took it to the mechanic, it just never worked properly. Eventually, I had no choice but to ditch it,” he recalled.
Desperate to keep his business running, Musa resorted to renting a motorcycle for UGX30, 000 per day, but the high rental fees quickly ate into his profits. He soon realized that without his own reliable bike, his business would struggle to survive.
Musa’s story reflects the challenge faced by thousands of Ugandans, especially in the informal sector. The high cost of motorcycles, combined with limited access to financing, has long made it difficult for small business owners, delivery riders, and boda boda operators to acquire the transport they need to earn a living.
However, Watu Uganda, a financing solutions provider, is determined to empower entrepreneurs and small businesses by offering affordable, flexible financing solutions that make it easier to own motorcycles and other mobility assets.
“Uganda’s transport landscape is evolving rapidly, driven by urbanization, the rise of e-commerce, and the expansion of ride-hailing and delivery services. The demand for affordable, efficient, and sustainable transportation solutions has never been greater. At Watu Uganda, we are bridging the gap for those who struggle to access traditional financing,” said Christian Kamukama, Head of Commercial at Watu Uganda.
Through digital onboarding, real-time vehicle tracking, and data-driven credit assessments, WATU ensures that even individuals with limited credit history can access financing. This innovative approach is helping more people participate in Uganda’s growing mobility economy.
Beyond financial accessibility, Kamukama says WATU Uganda is at the forefront of sustainable transport solutions. Recognizing the urgent need for cleaner mobility, the company is actively promoting electric vehicle (EV) technology within Uganda’s transport sector while continuing to support traditional fuel-powered motorcycles.
“Our approach is twofold: we ensure that boda boda riders and small business owners can access the transport they need today while also enabling a transition to cleaner mobility for a more sustainable future,” Kamukama explains.
The shift towards electric motorcycles (e-bodas) is particularly crucial for urban areas like Kampala, where air pollution is an increasing concern. With over one million petrol-powered boda bodas on Uganda’s roads, the transport sector is a major contributor to greenhouse gas emissions and urban air pollution.
“As Uganda continues to urbanize, reducing emissions will be crucial for improving public health. However, this doesn’t mean that traditional fuel-powered bikes will disappear overnight,” Kamukama added.
John Walugembe, the Executive Director of the Federation of Small and Medium-Sized Enterprises Uganda (FSME), believes that mainstreaming green energy in transportation presents a viable solution to Uganda’s economic and environmental challenges.
“The adoption of electric vehicles can help reduce dependence on fossil fuels, cut emissions, and create long-term sustainability. Additionally, the EV industry presents opportunities for job creation in manufacturing, charging infrastructure development, and vehicle maintenance. Financing these assets will further accelerate EV adoption,” Walugembe stated.
To fully integrate green energy in Uganda’s transport sector, Walugembe recommended strong government policies and incentives. While progress has been made in promoting renewable energy, he believes more needs to be done. He advocated tax incentives, subsidies, and reduced import duties on EVs and charging infrastructure to encourage widespread adoption. Additionally, he underscored the importance of public education on the benefits of green energy solutions and the need to equip local technicians with the necessary skills to service and maintain EVs.
“There must be deliberate efforts to promote the economic and environmental benefits of EVs and clean transport technologies. By reducing emissions and adopting cleaner fuels, Uganda can significantly cut air pollution while contributing to global efforts to combat climate change,” Walugembe added.
Western Uganda has increasingly faced the devastating effects of climate change, with prolonged droughts, unpredictable rainfall, and floods threatening agriculture, biodiversity, and livelihoods.
In response, the World-Wide Fund for Nature (WWF) in Uganda, in partnership with the International Institute for Sustainable Development (IISD) Canada, has stepped forward with a UGX300 million grant to support women’s groups in the region. This initiative aims to enhance climate adaptation efforts and strengthen community resilience.
According to Paul Hatanga, WWF Uganda’s Project Coordinator, the funding prioritizes empowering vulnerable communities to mitigate climate change effects.
“The World Wide Fund for Nature in Uganda has committed to supporting successful groups and vulnerable communities that have risked their potential to protect the environment,” Hatanga noted.
The grant is part of the Climate Adaptation and Protected Areas Initiative (CAPA) project, which WWF and IISD Canada launched in Rubirizi District. The initiative seeks to protect wildlife, conserve natural resources, and build local capacity to combat climate-related challenges.
Western Uganda, particularly Kasese and Rubirizi districts, has been significantly impacted by climate change. Deforestation, land degradation, and changing weather patterns have led to declining agricultural productivity and increased food insecurity. Many communities depend on farming, and erratic weather conditions have caused crop failures, livestock losses, and heightened poverty levels.
Additionally, extreme weather events, such as floods and landslides, have destroyed homes, displaced families, and put a strain on local resources. These challenges necessitate urgent interventions to promote climate resilience and sustainable environmental practices.
At Kyarumba Catholic Parish in Kasese District, WWF Uganda office officially handed over the UGX300 million grant to three women’s groups dedicated to environmental conservation and climate adaptation. The beneficiaries include:
• Kyankwanzi Bakyara Tukorere Hamwe Bika Oguzee from Kicwamba Sub-County, Rubirizi, receiving UGX 106 million.
• Nyambuko Development Group from Kasese, receiving UGX 97 million.
• Bwitho Men and Women Group, also from Kasese, receiving UGX 97 million.
The financial support will be used to implement sustainable agricultural practices, tree planting initiatives, and eco-friendly business ventures aimed at reducing the negative impact of climate change.
Women’s groups will invest in climate-smart agriculture, agroforestry, and income-generating activities such as beekeeping and eco-tourism to enhance economic stability while protecting the environment.
WWF Uganda’s Communication Officer, Happy Ali, reaffirmed the organization’s commitment to safeguarding biodiversity and promoting sustainable solutions.
“The WWF’s objectives include stopping the degradation of the planet’s natural environment and building a future where humans live in harmony with nature,” said Ali.
Asimwe Monica, the chairperson of the Kyankwanzi Bakyara Tukorere Hamwe Group, expressed appreciation for the support, stating that the funds would help expand their businesses and marketing opportunities.
MTN Uganda, through its MTN Foundation, in partnership with Sense International Uganda, has handed over a fully equipped computer laboratory to St. Francis Primary School for the Blind in Soroti, in a generous move aimed at enhancing digital inclusion for learners with disabilities.
The new computer lab, part of the Foundation's Digital Access Project, is designed to provide 122 pupils—53 girls and 69 boys—with the digital literacy skills they need to succeed in today's technology-driven world.
The lab is equipped with ten computers, including specialized software such as JAWS (Job Access With Speech) for visually impaired learners, sound amplifiers, scanners, printers, and one year of free internet connectivity.
Speaking at the official launch of the facility in Soroti City, Sr Rose Abongi Alyabo, the headteacher of St. Francis Primary School for the Blind, described MTN’s initiative as “a game-changer for our pupils.”
“For a long time, our learners have missed out on digital education due to limited resources. With these new facilities, they now have the opportunity to learn, explore, and develop skills that will open doors to a brighter future,” she said.
While technology is a critical component of modern education, many learners with disabilities in Uganda face challenges due to a lack of infrastructure and digital tools. This new lab aims to bridge that gap, ensuring equal learning opportunities for all students.
Rev. Fr. Geoffrey Akiso Odongo, who represented Catholic Bishop of Soroti Diocese as the chief guest, commended MTN Uganda for its efforts in digital inclusion.
“This initiative shows what we can achieve when we work together to support our communities. Technology is no longer a luxury; it’s a necessity. By equipping schools like St. Francis with ICT tools, MTN is helping build a better future for our children and our country,” he said.
The MTN Foundation’s Digital Access Project is a UGX1 billion investment aimed at setting up 11 computer labs across Uganda, five of which are inclusive labs designed for learners with visual and hearing impairments.
In addition to the Soroti school, inclusive labs will also be established at Iganga Secondary School, Kisoro Demonstration Primary School, Nvara Secondary School in Arua, and Ngetta Girls Primary School in Lira.
“At MTN Uganda, we believe everyone deserves access to the benefits of a modern, connected life,” said Nelson Munyanda, manager of the MTN Foundation.
“Technology can break barriers and unlock the full potential of every individual. Through initiatives like the Digital Access Project, we are ensuring that no one is left behind—especially learners with disabilities.”
Edward Otim, Regional Director for Sense International East Africa, noted that the new computer lab would significantly enhance digital literacy for learners with deafness and blindness, ensuring they have access to the latest technologies in the modern world.
The students at St. Francis were beyond words with excitement. “These computers will help us transcribe our work, reducing the workload of writing in braille and making research easier,” said Francis Wamimbi, a P7 learner.
“The computers will also help us improve our spelling and access educational content. With JAWS software, we can correct mistakes in our notes and exams, making learning more effective,” added Kem Federeta, also a P7 learner.
Over the years, MTN Uganda has supported the establishment of 63 ICT labs in schools, vocational centers, and prisons, often in partnership with organizations such as Sense International Uganda, Promoting Equality in African Schools, Enabel, and public resource centers at various district local governments.
Agri-tourism, the type of tourism that combines agriculture and tourism, is emerging as a key frontier to diversify Uganda’s tourism industry beyond traditional wildlife safaris and cultural tours, with experts projecting it could contribute at least UGX 500 billion ($135 million) to national revenue by 2030.
The sector, if fully developed, could generate over 100,000 jobs, driving rural development and economic growth.
While Uganda is globally recognized for its rich biodiversity, national parks, and wildlife, industry stakeholders believe the agriculture and cultural heritage sectors present untapped opportunities that could significantly boost national revenue and employment.
According to the Ministry of Tourism, Wildlife, and Antiquities, tourism is not only about visiting parks or wildlife conservation; there is also agro and cultural tourism that Uganda needs to sell to the international community.
On a recent guided tour to agro-tourism facilities in western Uganda, Eunice Tworekirwe told journalists that agro-tourism allows visitors to experience farming activities first-hand, is steadily gaining popularity in Uganda.
One notable success story visited was Kabeihura Farmers Limited in Bushenyi District, which has recently started attracting local tourists.
According to Eriyabu Muhozi, the farm’s proprietor, agro-tourism has expanded his business beyond expectations.
“We have started attracting local tourists, and the business is yielding because we are now supplying our products beyond Uganda, including to the Democratic Republic of Congo,” Muhozi noted.
The farm was created in 1975 on 20 hectares of land devoted to cultivating tea. Since then, the property has grown to include dairy, poultry and fish production, as well as 40 hectares of eucalyptus forest.
The farm currently employs 100 workers, illustrating how agro-tourism can create jobs and stimulate rural development. Experts estimate that if fully supported, agro-tourism could generate over 100,000 jobs by 2030, strengthening Uganda’s agricultural sector while enhancing tourism revenue.
Beyond agriculture, cultural tourism is another underutilized sector with vast potential. Mary Mugyenyi, proprietor of Nsehenyi Cultural Village in Ntungamo District, believes that cultural and agro-tourism remain largely untapped in Uganda’s tourism promotion strategies.
“Uganda is rich in diverse cultural traditions that, if well-packaged, can attract both local and international tourists. We need to invest in infrastructure and marketing to harness this potential,” Mugyenyi said.
Uganda’s growth strategy for the 2024/2025 Financial Year prioritizes agro-industrialization, tourism development, mineral exploration including oil and gas and technology and innovation. By integrating agro-tourism into the national tourism framework, the government aims to enhance revenue generation and create more employment opportunities.
The tourism sector remains a vital contributor to Uganda’s economy, generating approximately UGX5.8 trillion ($1.56 billion) annually. According to the Uganda Tourism Board (UTB), agro-tourism could contribute at least UGX500 billion ($135 million) to national revenue by 2030, if well-facilitated.
Industry stakeholders stress the need for improved road networks, marketing strategies, and supportive policies to enhance agro-tourism development. “There is a need to stimulate policymakers to invest more in agro-tourism development and related infrastructure. This will not only boost revenue but also uplift rural communities economically,” said Dr. Emmanuel Kamugisha, an economist and tourism analyst.
“With growing interest from both local and international tourists, Uganda is positioning itself as a prime agro-tourism destination. By leveraging its agricultural strength and rich cultural heritage, the country can diversify its tourism sector and drive sustainable economic growth,” said Tworekirwe.
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.