A business based magazine that brings you the latest authoritative and usable business news, appealing stories & impactful blogs from Uganda, the EAC region and beyond.
The government has officially launched a Resettlement Action Plan (RAP) to facilitate the construction of the country’s first nuclear power plant in Buyende District.
The $9 billion (UGX33.3 trillion) project, spanning an area of 30 square kilometers in Kidera Sub-county, is expected to displace thousands of residents from 11 villages to make way for the 8,400-megawatt (MW) facility that promises to revolutionize Uganda’s energy sector.
Launching the RAP at Kasaato Village, the First Deputy Prime Minister Rebecca Kadaga assured affected residents that the government is committed to a fair and transparent resettlement process.
“We understand your concerns and pledge to ensure that no one is left behind. Compensation will be transparent and compliant with the law. This project will bring transformative benefits to Uganda, and we want you to be part of its success,” Kadaga stated.
The RAP is designed to address the social, economic, and environmental aspects of resettlement, focusing on fair compensation, social continuity, and improving living standards for displaced communities.
Officials said the Buyende nuclear plant, projected to generate 8,400 MW, would significantly boost Uganda’s energy capacity, which currently relies heavily on hydroelectric and thermal power. According to Denis Tusiime, a nuclear engineer from the Ministry of Energy and Mineral Development, Buyende was selected based on its strong bedrock and proximity to Lake Victoria, which provides the critical water resources needed for nuclear fission.
The project aligns with the government’s Energy Policy 2023, which envisions generating 52,000 MW of electricity by 2040, with nuclear energy contributing 24,000 MW.
“This is a milestone for Uganda’s industrialization and energy independence. The plant will generate an estimated UGX12 trillion annually through industrial growth, reduced energy imports, and enhanced productivity,” said Irene Bateebe, the ministry Permanent Secretary.
Kadaga urged local communities to embrace the project while acknowledging the challenges of displacement.
“We must recognize that such large-scale projects come with challenges, especially resettlement. However, we are committed to ensuring this process is handled with due consideration for the affected communities,” she emphasized.
Uganda’s vast uranium reserves, estimated at over 50,000 metric tons in districts like Arua, Agago, and Masindi, will fuel the plant. The government also plans to develop seven additional nuclear sites to meet long-term energy demands.
The RAP launch marks a significant step in realizing Uganda’s nuclear energy ambitions. As the country transitions to this transformative energy source, the focus will remain on balancing infrastructure development with the welfare of affected communities.
“This is not just a power project; it is a symbol of Uganda’s growth and self-reliance,” Kadaga added.
Nuclear power plants produce electricity by boiling water into steam, which is channelled to turn huge turbines to produce electricity. Uganda has a Memorandum of Understanding with the Russian State Atomic Energy Corporation (ROSATOM) to peacefully use nuclear energy.
While Uganda’s project is a bold step toward achieving Uganda’s socio-economic goals, critics are concerned about its cost-effectiveness. According to the World Nuclear Industry Status Report (WNISR), nuclear energy costs range between $112 and $189 (UGX 415,000–700,000) per megawatt-hour, significantly higher than hydroelectric alternatives.
Activists insist that while nuclear energy offers potential benefits in terms of low-carbon electricity generation and energy security, policymakers must carefully weigh these benefits against the serious risks associated with nuclear power including radioactive waste that could contaminate soil, water, and air for very many years.
Uganda’s largest media house, New Vision Printing and Publishing Corporation, has reported a further decline in its financial performance for the year ending June 2024, extending its loss-making streak for the fourth consecutive year.
The company, which is 53.3% owned by the government, recorded a loss of more than UGX11 billion, more than double the UGX5.46 billion loss it posted in June 2023, as it grapples with a challenging business environment and declining revenues across several key sectors.
The second biggest shareholder is the National Social Security Fund (NSSF) with 19.6%.
In the period under review, the company’s turnover dropped by 8.3%, from UGX87.6 billion to UGX80.3 billion, with almost all of its business segments facing downturns, except commercial printing.
Results published on November 20 show that commercial printing saw an improvement in revenue, increasing from UGX16.2 billion to UGX 19.8 billion. The newly established outdoor advertising segment also made a modest contribution of UGX 811 million.
However, revenues from the traditional media sectors, including print and electronic media, were the most-hit. Print media, which accounted for 39% of the company’s revenue, experienced a decline of approximately UGX3 billion, falling to UGX 31.6 billion.
Electronic media also saw a drop of UGX2.6 billion, falling to UGX 24.2 billion. Publishing, a key area, also suffered a sharp decline, bringing in only UGX1.6 billion compared to UGX7.3 billion the previous year.
The company attributed its performance to several factors, including the rise in cost of raw material inputs like newsprint and commercial paper, which it says rose by 2.8% further pushing up the cost of sales and contributing to the overall loss.
The financial report shows that the company has invested UGX4 billion in the outdoor advertising segment, installing digital screens in key areas of Kampala. The initiative has generated some positive traction, including securing new clients and generating UGX811 million in revenue. However, these measures have not been enough to offset the wider downturn in the business.
The company also saw a slight reduction in its operating costs, with administrative expenses decreasing slightly by 1.6%. However, gross profit recorded a 55% decline to UGX7.7 billion from UGX17 billion recorded the previous year. However, the listed company’s overall financial outlook remains bleak.
As a result of the ongoing losses, the board has announced that no dividends are to be paid to shareholders this year, citing the company’s loss position. The loss per shareholder has more than doubled, with each shareholder losing UGX146.4, compared to UGX71.4 last year.
Revenue from publishing, advertising, circulation, and commercial printing all dropped, reflecting the broader challenges the company is facing going forward.
The ongoing challenges in the traditional media sector, coupled with rising input costs and a volatile business environment, are expected to affect performance throughout the year.
Despite these challenges, the company said it remains committed to navigating these tough times through diversification into new markets and cost-optimization measures. However, it remains to be seen if these efforts would be sufficient to reverse the company’s fortunes in the coming years.
With revenues continuing to fall, especially in traditional media, and operational costs rising, Vision Group faces an uphill battle to restore profitability.
The company’s losses reflect broader trends in the media industry, where traditional advertising models are being disrupted by the new media technologies, and businesses are grappling with increased costs and rapidly changing consumer behavior.
In another first, MTN Uganda has become the first subsidiary of the MTN Group to launch an e-commerce platform, aimed at giving Ugandans a seamless online selling and shopping experience.
Launched in Kampala yesterday, the hi-tech platform, dubbed ‘Market by MoMo,’ is a partnership between MTN Group Fincommerce, a subsidiary of MTN Fintech Group, MTN MoMo Uganda and Mastercard, a global financial services company that provides payment solutions through credit and debit cards.
Speaking at the launch, officials said ‘Market by MoMo’ is a one-stop digital marketplace that allows Ugandans to buy and sell a wide range of genuine products from electronics to groceries, fashion, beauty, fitness products, home & office, mobile phones and electronic appliances, while benefiting from reliable services, flexible payment options, and prompt deliveries.
The new platform represents a significant step forward in Uganda's digital economy, offering both customers and merchants a streamlined and secure way to engage in e-commerce, regardless of their location.
Brian Mutungi, the e-commerce Country Lead of MTN Group Fincommerce, described the new product as a “game-changer,” emphasizing its transformative potential.
“Market by MoMo combines a variety of product categories, flexible payment options, and user-friendly shopping features, making it a game-changer for Uganda’s e-commerce sector. This launch also aligns with our vision of leading digital solutions for Uganda’s progress,” said Mutungi, adding that that MTN Group’s partnership with Mastercard has also been instrumental in bringing Market by MoMo to life.
Anyone with something to sell only needs to register as a vendor and post the product on the platform via the MoMo app or the website; https://market.momo.africa/Portal/. The platform is zero-rated for MTN customers, allowing access without data charges.
The platform offers flexible payment options including MTN MoMo as well as the major credit/debit cards. Delivery is swift and reliable, with orders reaching customers in Kampala and Greater Kampala within two days or less.
Speaking on behalf of Sylvia Mulinge the MTN Uganda CEO,( Joseph Bogera, the MTN Uganda General Manager for Sales and distribution, described the launch of Market by MoMo as a step forward towards building a more equitable, connected, and empowered society.
“As MTN, we are inspired by our vision that everyone, regardless of their background, deserves the benefits of a modern, connected life. It’s a vision that drives us every day to push boundaries and innovate so that we can create a brighter and more inclusive digital future. This milestone reflects the steady and purposeful progress we’ve made, and it highlights the power of collaboration. Together, we’ve woven partnerships that are driving innovation, building capacity, and delivering real, tangible benefits to people across Uganda,” Bogera said.
Amnah Ajmal, Mastercard’s Executive Vice President for Market Development for Eastern Europe, Middle East and Africa, hailed the collaboration with MTN and described the platform as safe, secure and seamless.
“Through this collaboration with MTN Group Fintech, we are proud to enable local businesses and consumers in Uganda to participate fully in better shopping experiences. Market by MoMo is a significant step forward in creating economic opportunities and digital inclusion, aligning with Mastercard's vision for a more inclusive, digital Africa,” she said.
In February, Mastercard and MTN Group Fintech signed a multi-market agreement that will set in motion a new era of collaboration to connect millions of people and small businesses across Africa with digital tools to transact through secure mobile payments, expanding access to the benefits of the cashless digital economy.
Consequently, the Market by MoMo platform will also enable a previously untapped opportunity for Ugandans in the diaspora, to shop for relatives back home using payment options including MoMo or debit/credit card.
“The e-commerce sector is a rapidly growing segment of the global economy,” noted Mutungi.
“By launching Market by MoMo in Uganda, we are not only diversifying our product offerings but also empowering Ugandans to join the digital transformation journey, contributing to our nation’s economic growth. Together, we are setting the foundation for a more connected, more digital, and more inclusive Uganda,” he added.
In a bid to use music as a catalyst for positive energy at the workplace, MTN Uganda has released “Sunny Days”, a lively tune created by MTN Uganda employees under the MTN Got Talent program.
The company said in a press release that the vibrant and spirited anthem reflects the core values that drive MTN's work culture namely; integrity, agility, care, service, respect, collaboration and inclusion, all wrapped in the fun, uplifting melodies that make work as well as everyday tasks and hustles a joyful experience.
MTN Uganda's Chief Executive Officer Sylvia Mulinge said the ‘MTN Sunny Days’ song is not just about having fun—it’s about embracing the values that define MTN as a workplace.
“It embodies the idea that a motivated, valued, and joyful team will always achieve great things. MTN fosters a work culture where creativity is encouraged, and where people feel empowered to bring their best selves to work every day. A happy workplace leads to success, and we believe that spreading this energy through music can inspire not only our employees but also the community we serve,” Mulinge said.
The ‘MTN Sunny Days’ song highlights how fun and positivity are embedded in MTN Uganda's DNA. Whether it's serving customers, innovating new solutions, or just being there for each other as a team, the song reminds MTNers that joy is at the heart of everything they do.
With lyrics that celebrate togetherness, authenticity, and positivity, the “MTN Sunny Days” anthem aims to inspire more than just MTN employees—it is a song for anyone who believes in the power of joy, teamwork, and staying true to your values to achieve success.
Human resources experts say music has the power to uplift moods, reduce stress, and create a more positive atmosphere in the workplace. This can lead to increased job satisfaction and overall well-being.
Music can help alleviate stress and anxiety, which are common workplace stressors. This can improve mental health and overall job satisfaction.
Additionally, shared musical experiences can foster a sense of camaraderie and teamwork among employees, strengthening workplace relationships and increasing job satisfaction.
Starbucks, a global coffee conglomerate with over 35,000 stores worldwide, is known for its unique approach to music and culture, often incorporating music into their events and marketing strategies to create a memorable experience.
MTN Uganda currently employs more than 1,000 employees both directly and indirectly and has built a reputation as one of the most-preferred employers in the country because of its organizational culture and favourable working conditions.
The ‘Sunny Days’ song, whose video was shot at the MTN head offices in Kampala, perfectly encapsulates how MTN’s workplace values create an environment where teamwork, fun, and a positive outlook come together to lead to inevitable success.
The lyrics reflect the spirit of connection, kindness, collaboration, and empowerment that 'MTNers' live by every day.
MTN has a presence in all districts in Uganda and works through a network of over 206,000 MoMo agents, 316,000 MoMo merchants, 200 service stores and 13 main distributors.
For the nine months ended September 30, 2024, MTN Uganda had 21.6 million subscribers, 13.2 million MoMo users, and 9.3 million active data users.
Uganda has been named among the top 20 investment destinations on the African continent in 2024.
The report titled; "Where to Invest in Africa," is compiled by Rand Merchant Bank (RMB) of South Africa.
The report, which provides an in-depth analysis of investment opportunities across African countries, assesses economic conditions, growth potential, and other factors influencing investment decisions in various sectors throughout Africa.
It has ranked 31 African countries, which jointly account for 92% of Africa’s GDP. It put Uganda in the 19th position on the continent, behind Kenya (11th), Tanzania (12th) and Rwanda (15th).
The two small island economies of Seychelles and Mauritius rank first and second as the most attractive investment destinations on the continent, while the significantly larger economies of Egypt, South Africa, and Morocco rank in third, fourth and fifth places respectively.
The scorecard draws on 20 different metrics spanning four measurement pillars, drawing on publicly available data sets from global institutions, including the World Bank, the IMF, the African Development Bank, the United Nations, and the International Labour Organisation.
Among the 31 countries, Uganda’s best score was in the category of ‘Economic Performance & Potential’ where it was ranked 9th among the 31 countries, ‘Market Accessibility & Innovation’ (19th), ‘Economic Stability & Investment Climate’ (20th), and Social & Human Development (19th).
The report notes that the significant drivers of Uganda’s positivity in 2024 include an oil-related construction boost, solid agricultural growth, raised private investment, gold exports (more than one third of the export basket) and a post-COVID-19 tourism recovery.
“However, these positives are countered by some low scores that move Uganda to a final ranking of 19th. Its poorest positioning is 28th for import concentration, which leave it vulnerable to shocks in the price of its main imports. Urbanisation is low (27th overall), with just a quarter of the country living in urban areas,” the report reads in part.
It adds; “Uganda's political landscape and regulatory environment have sometimes been flagged as concerns for investors. The country's legal and regulatory frameworks, although improving, can be seen as inconsistent or challenging for businesses.”
It also notes that although the government has made strides in infrastructure development, Uganda still faces challenges in transport and energy infrastructure, which can impact business operations and investments.
Uganda, however, is cited as one of the countries with ‘People Potential’ - markets with a young and growing demographic, creating a sizeable consumer base and a future workforce.
The ‘Where to Invest in Africa’ report is highly regarded and widely followed, particularly among investors, business leaders, and policymakers focused on the African continent.
To a typical investor, Uganda's performance may be viewed as reflecting a mix of opportunity and caution.
While the country has been credited for its economic potential, particularly in agriculture and natural resources, investors are often advised to consider the broader political and regulatory environment when making investment decisions.
In a bold move aimed at tightening the noose on unscrupulous money lenders, the Government has published Legal Instrument 21 of 2024, which caps interest rates on loans at not more than 2.8% per month (33.6% per annum).
Some incorrigible money lenders have been charging interest rates of 50% or more per month, while some microlenders operating through mobile money have been charging interest rates of more than 10% per month.
President Yoweri Museveni has repeatedly called for tough laws against money lenders, accusing them of defrauding clients and taking advantage of ignorant and desperate people.
The legal notice, titled; ‘The Tier 4 Microfinance Institutions and Money Lenders Act (prescription of maximum interest rate) Notice, which was issued on November 8 and published in the Gazette on November 15, was signed by Finance Minister Matia Kasaija.
“In exercise of powers conferred upon the Minister responsible for Finance by Section 89 (1) of the Tier 4 Microfinance Institutions and Money Lenders Act and in consultation with the Uganda Microfinance Regulatory Authority, this notice is issued this 8th day of November, 2024,” reads the legal notice.
It adds; “In accordance with Section 89 (1) of the Tier 4 Microfinance Institutions and Money Lenders Act, the maximum interest rate that a money lender shall charge on the principal or the actual sum of the money advanced as a loan to a borrower is 2.8% per month or 33.6% per annum.”
The Tier 4 Microfinance Institutions and Money Lenders Act was intended to set up a regulatory framework for microfinance institutions that do not accept deposits and are not supervised by the Bank of Uganda. This legislation aims to protect lower-income borrowers from exploitative practices in the lending market and to ensure better governance within the microfinance sector.
The relevant Section says; “The Minister may, in consultation with the Authority, by notice in the Gazette, prescribe a maximum interest rate which a money lender shall charge.”
It adds; “A money lender who charges an interest that is higher than the maximum interest rate prescribed by the Minister commits an offence and on conviction, is liable to a fine not exceeding 50 currency points (UGX1 million) and the court may, in addition to the fine order that the money lender’s licence be cancelled and the money lender pays the borrower any money paid in excess as a result of the interest rate charged.”
Speaking at the 8th Annual Conference of the Southern and Eastern Africa Chief Justices Forum in Kampala last month, Mr Museveni condemned the high interest rates imposed by money lenders, describing them as exploitative and a threat to Uganda’s economic stability if not properly regulated.
The President particularly criticized hidden contracts, where lending agreements are disguised as purchase contracts.
Among the other unscrupulous practices by money lenders is that of disappearing ahead of the deadline such that the borrower cannot not trace him/her to pay in order not to forfeit the collateral.
However, the law stipulates that when the money lender evades the borrower to the extent that it becomes impossible for the borrower to repay the money lender, the borrower may deposit the loan monies with the Uganda Microfinance Regulatory Authority and and the repayment shall be deemed to have been paid to the money lender.
Earlier, the National Identification and Registration Authority (NIRA) banned money lenders from using National Identity Cards as collateral for loans.
On any given day in Kampala City, the streets are clogged with traffic, the air thick with exhaust fumes. In 2022, Kampala was on the list of the most heavily polluted cities worldwide, with pollution levels frequently exceeding WHO guidelines. The health impacts of air pollution, largely attributed to boda boda motorcycles, include respiratory diseases, heart disease, and cancer.
Kampala is often referred to as a "boda boda city" of Africa because of the sheer number of motorcycle taxis, known as boda bodas, that dominate the city's transportation landscape. These two-wheeled vehicles are ubiquitous, weaving through traffic and offering a quick and efficient way to navigate the city's often congested roads.
With an estimated 350,000 of these motorbikes operating in the city, Lord Mayor Eriasi Lukwago says their contribution to air pollution, noise, and greenhouse gas emissions is significant.
But the coming of the electric motorbike, according to experts, could be a game changer, offering solutions to the long-standing air pollution and waste challenges the city has been grappling with. The eco-friendly bikes are not only transforming the way people move around the city but also offering a cleaner, quieter, and more sustainable alternative to traditional fuel-powered motorcycles.
According to Victor Getenya, Head of Electric Vehicles (EV) at Watu Uganda, the direct contribution of EV bikes to environmental sustainability is immense.
“Electric bikes run on rechargeable batteries, which means no petrol is needed. This significantly reduces greenhouse gas emissions and helps to combat air pollution. This shift is crucial in addressing climate change and improving the quality of urban air,” he says.
He further explains that electric motorbikes also produce zero tailpipe emissions, which is especially important for cities like Kampala, where poor air quality is linked to respiratory issues and other health problems.
He adds that allowing electric bikes to compete with or replace petrol-powered motorbikes on the market would improve air quality in the city, leading to a healthier environment for all its residents.
“Noise pollution, another major problem in cities, is also tackled by electric motorbikes. Traditional petrol engines are notorious for their loud noise, especially during peak hours, creating a constant hum in the urban environment. In contrast, electric bikes operate quietly, leading to peaceful streets and a calmer atmosphere. Having a mix will therefore improve the quality of life for residents,” he adds.
Currently, electric motorbikes account for about 10% of the boda boda fleet in Kampala. This figure is notable, especially when compared to neighbouring East African countries. Watu Uganda has deployed thousands of electric bikes across Kampala, significantly enhancing urban mobility.
Although electric motorbikes cost a little more than their ordinary counterparts, Getenya says Watu Uganda has a financing model aimed at reducing the upfront burden of acquiring the bikes, in order to drive adoption.
“As an asset financing company, we have a model for financing EV bikes, and as we speak, adoption is gaining ground. We have introduced financing options that allow riders to pay for their electric bikes in affordable installments, and this has brought many on board, including those who don’t have access to bank loans,” he says.
He notes that while the initial cost of an electric bike may be higher than that of a petrol-powered one, the long-term savings are significant.
Electric bikes require much less maintenance, with no need for oil change or spark plug replacement or frequent repairs and servicing, which enables riders to save up to UGX500,000 annually on maintenance costs. On top of that, riders can save between UGX10,000 to UGX20,000 daily, in comparison to the petrol-powered bikes.
“As more people adapt to the EV bikes, the trickle-down effect will be immense. With each saving made, investment is also made, which results in a greater impact on the economy, and the household as a whole,” says Gatenya.
Diamond Trust Bank (DTB) and Credable Group have entered a partnership through which Ugandans will be able to borrow microloans via Airtel Money.
The service dubbed, ‘Kwasa Kwasa,’ provides Airtel Money customers with quick, affordable short-term loans, designed to meet their personal and business needs conveniently via their mobile phones.
Officials said the initiative aims to bridge significant financial access gaps, particularly for underserved Ugandans in rural areas and informal savings groups.
Airtel Money subscribers can now borrow amounts ranging from UGX 5,000 without the need for collateral, using Airtel’s USSD code 1858*3# and via the MyAirtelApp.
At the signing ceremony, DTB Uganda’s Chief Executive Officer, Godfrey Sebaana, shared his enthusiasm for the Kwasa Kwasa initiative, emphasizing its alignment with Uganda’s financial inclusion goals.
“We are optimistic that Kwasa Kwasa will help us realize our vision of empowering people to advance confidently. At a micro-level, we’re enabling anyone to solve immediate needs conveniently and affordably,” he stated.
Airtel Mobile Commerce Uganda’s Managing Director, Japhet Aritho, echoed Sebaana’s sentiments. He highlighted Airtel Money's commitment to expanding credit access for Ugandans, particularly those typically excluded from traditional banking.
“At Airtel Money, we are dedicated to building strong partnerships that provide greater credit access to our customers, many of whom wouldn’t be banked traditionally. We welcome DTB and Credable for joining us on this journey, bringing financial services into the hands of millions through our USSD 185.”
Credable Uganda’s Country Lead Simon Asiimwe, underscored the partners' shared commitment to delivering a smooth, reliable user experience.
“Kwasa Kwasa is more than just a loan; it’s a tool for empowerment. We’re focused on ensuring every Kwasa Kwasa customer enjoys a fast, dependable, and exceptional experience,” Asiimwe affirmed.
To qualify for Kwasa Kwasa, customers need only an active Airtel SIM card, Airtel Money registration, and a valid National Identification Number (NIN).
With this simplified eligibility, DTB, Airtel Money, and Credable Group are set to empower more Ugandans to manage their finances effectively and plan for a more secure future.
Several Ugandan banks are already in the micro-lending the fray, which has not only brought financial services closer to Uganda's underserved populations but has also reinforced Uganda’s vision of inclusive economic growth.
Diamond Trust Bank Uganda (DTB) has partnered with Xpress Money, an international money transfer service, to enable customers to receive money in over 170 countries worldwide at no cost.
The partnership represents a key step in reducing the barriers associated with sending money and receiving money as it aligns with the United Nations Sustainable Development Goal 10, which seeks to reduce inequalities by making remittances more affordable.
The development is especially significant for Uganda, one of the largest recipients of remittances in Sub-Saharan Africa, with an inflow of approximately $1.4 billion in 2023.
DTB Uganda’s Chief Executive Officer, Godfrey Sebaana, underscored the importance of this service for Ugandans abroad and their families at home.
“We are thrilled to join hands with Xpress Money to boost our remittance offerings. At DTB Uganda, we recognize that remittances are essential lifelines for many, from covering school fees to healthcare costs and even basic living expenses,” Sebaana said.
He noted that this partnership would not only facilitate critical financial inflows but also contribute to a more financially inclusive economy.
The overall cost of remitting money abroad remains high, particularly for smaller transfers or regions with limited access to banking services.
Money transfer fees/charges can vary widely depending on the service provider, the destination country, and the method of sending such as online or via mobile money. Some providers have hidden costs that are not always immediately apparent to the sender, including withdrawal charges imposed on the recipient at the point of withdrawing the cash.
Yet, remittances play a crucial role in Uganda, often covering essentials like education, healthcare, and housing. By eliminating charges imposed on the recipient, this partnership between DTB and Xpress Money enables greater disposable income for families that rely on funds from abroad, providing an economic buffer for countless households.
The service offers a variety of transfer options, including cash-to-cash, direct account credits, and mobile wallet deposits, ensuring convenient and secure options for Ugandans in the diaspora to support their families at no charge for the recipient.
Samir Vidhate, CEO of Xpress Money, highlighted the partnership’s impact on financial connectivity for customers around the world.
“Our partnership with DTB Uganda reflects our dedication to providing convenient, secure remittance options for customers globally. We are pleased to extend our services to DTB Uganda’s customers, making it easier and more affordable for them to send money home. Together, we aim to simplify remittances and strengthen the connection between families across borders,” Vidhate stated.
The partnership is also part of DTB Uganda’s broader strategy focused on digital transformation and expanding diaspora banking services. By aligning with fintech leaders, DTB aims to refine its remittance solutions to meet the needs of the diaspora market.
The bank’s efforts in this space demonstrate a commitment to making global remittances more efficient and accessible, driving Uganda toward a more resilient, financially inclusive economy.
Aligned with the UN’s goal of reducing remittance transfer costs to below 3% by 2030, DTB and Xpress Money’s zero-cost service is poised to bridge financial gaps, empower Ugandan communities, and enhance economic equality.
For many Ugandans, this service represents not only a cost-saving measure but also a stronger, more affordable connection to loved ones across borders.
The Government of Uganda is set to officially hand over the construction of the Standard Gauge Railway (SGR) project to a Turkish company, following the signing of the $3 billion contract.
Preparations are underway for President Yoweri Museveni to officially commission the project in Tororo soon. Gen. Katumba Wamala, the Works and transport minister, said Yapi Merkezi is to undertake the 272km project for a period of four years.
He expressed confidence in collaborating with Yapi Merkezi, in joint venture with YM Global Ltd, for the strategically important project for the region as it would connect Uganda and Kenya, enhancing regional trade and economic integration.
However, he wants the company to ensure that the project’s Local Content Strategy is adhered to in a bid to ensure that local capacity is enhanced and that Ugandans benefit from the project right from the start. The Government has earmarked at least 40% of the contract value for local suppliers.
The SGR is expected to accommodate passenger trains traveling at 160 kilometres per hour and cargo trains traveling at 120 kilometres per hour - faster than a standard saloon car.
The Malaba-Kampala project entails the design, construction, and supply of rail vehicles for a standard gauge railway that meets European and American standards, with full electrification, as well as two major stations, four medium stations, one marshalling yard, and three freight terminals.
It is Uganda’s first phase of the East African Railway Master Plan, connecting Uganda to neighboring countries including Kenya, DR Congo, South Sudan and Rwanda. Currently, the cost of transporting a container from Mombasa to Kampala is at about $5,000, but the SGR would bring that down to $1,500.
Funding has been provided by the Standard Chartered Plc of the United Kingdom. “Yapi Merkezi has leveraged its extensive expertise in railway engineering to provide the most suitable engineering solutions for this project,” said Dr Erdem Arioglu, the company’s Vice Chairman.
The Malaba-Kampala section stretches from the border town of Malaba, through Tororo and Jinja, to the capital Kampala. Following the completion of the Naivasha-Malaba Railway in Kenya, Uganda is desperate to do its part to connect the country to the Port of Mombasa on the Indian Ocean.
Additionally, the Kampala-Kasese (Western Route) project, for which Yapi Merkezi has also signed a Memorandum of Understanding, will provide the Democratic Republic of the Congo with rail access to the Port of Mombasa.
In January last year, the Ugandan government terminated the contract that it had signed with China Harbour Engineering Company (CHEC) to build the Kampala–Malaba section, on account of "failure to execute" for eight consecutive years.
However, concern persists in regard to the clearance of the right of way as many of the land owners are yet to be compensated. To date, only 150km of land out of the 272km (about 54%) of the Right of Way from Malaba-Kampala has been acquired.
Established in 1965, Yapi Merkezi has undertaken giant projects worldwide. As of 2021, the company had completed more than 62 railway projects totaling more than 4,000 kilometers on three continents, providing safe transportation to 3.5 million passengers daily around the world.
The company has field offices in several African countries, with projects in Tanzania, Ethiopia, Senegal, Zambia, Algeria, Morocco, and Sudan.
In Tanzania, Yapi Merkezi is undertaking a 165km SGR project, which entails maintenance workshops and depot areas, the Railway Institute, signaling, telecommunications and electrification works.
Several influential world leaders have opted not to attend an action summit this week at the center of climate talks in Azerbaijan. High on the agenda is a deal to boost climate funding for developing countries.
The two-day World Leaders Action Summit at COP29 got under way on Tuesday in Baku, Azerbaijan, with around 100 leaders taking part, although there are some noticeable absentees.
The top priority at this year's summit is expected to be landing a deal to boost funding for climate action in developing countries. Some are pushing for the current pledge of $100 billion (€93 billion) a year to be raised by ten times that amount at COP29 to cover the future cost of shifting to clean energy and adapting to climate shocks.
Without adequate finance, developing nations have warned that they will struggle to offer ambitious updates to their climate goals, which countries are required to submit by early next year.
The leaders of the 13 biggest emitters of carbon — countries responsible for more than 70% of 2023's heat-trapping gases — will not appear at this year's gathering.
Chinese President Xi Jinping, US President Joe Biden, and also India's Narendra Modi and France's Emmanuel Macron are among G20 leaders skipping the event.
"It's symptomatic of the lack of political will to act. There's no sense of urgency," climate scientist Bill Hare told the Associated Press.
Nevertheless, Azerbaijan's President and COP2 host Ilham Aliyev, UK Prime Minister Keir Starmer and Turkey's President Recep Tayyip Erdogan are among the nearly 50 leaders set to speak on Tuesday.
COP29 lead negotiator, Azerbaijan's deputy Foreign Minister, Yalchin Rafiyev, emphasized at a press conference on Tuesday that "success doesn't depend on one country alone."
"Unless all countries can slash emissions deeply, every country and household will be hammered harder than they currently are. We will be living in a nightmare," he said.
UN Secretary General Antonio Guterres warned that time was running out in the fight against climate change. "We are in the final countdown to limit the global temperature rise to 1.5 degrees Celsius," Guterres said. "And time is not on our side," he added.
The Paris Agreement, a legally binding climate treaty signed by 196 countries after COP21 in 2015, calls for limiting global warming to 1.5 degrees compared to pre-industrial levels. However, this goal looks increasingly unlikely to be met. This year the limit is expected to be exceeded for the first time, while the target is a multi-year average.
Guterres described 2024 as "a masterclass in climate destruction." The UN chief also said that nations needed to reach an agreement that does not leave poorer countries "empty-handed" in their fight against climate change. "Developing countries must not leave Baku empty-handed. A deal is a must," Guterres said.
In an address on Tuesday, Azerbaijan President Aliyev repeated a controversial quote that oil, gas and other natural resources are a "gift of the God" and said nations should not be judged by their natural resources and how they use them.
"Quote me that I said that this is a gift of the God, and I want to repeat it today here at this audience," he told delegates.
Azerbaijan has seven billion barrels of oil reserves and was one of the first places in the world to start commercial oil production.
A crackdown on the growing menace of identity theft, phone theft and flashing fraud has resulted in the arrest and prosecution of five men.
The five men - Nelson Mukisa, Benjamin Ssekamatte, Umaru Nsubuga, as well as Martin Michele and Joseph Kyakuwa (both phone technicians) - were held at Kiira Road Police Station before being arraigned at the City Hall Court on November 12 to answer charges of being part of a sophisticated phone-flashing syndicate that poses significant risks to digital security and online businesses.
They were charged with theft and breaching a restricted system, in an attempt to steal a phone sold on hire-purchase.
The five suspects are accused of participating in a criminal network that illegally accesses mobile devices, tampering with their software to bypass security systems and erase data. They were later remanded at Luzira prison.
The case, which has raised concerns about the vulnerability of online businesses and digital transactions, was sanctioned by the director of public prosecutions.
While remanding the suspects, City Hall Chief Magistrate Edgar Kalyegira described the offences as serious, which prompted swift action from law enforcement agencies. The suspects face severe penalties, including long prison sentences, if convicted.
In a subsequent operation, three more individuals - Kabuye Arafat, Moses Bbosa, and Umaru Kisitu - were arrested on November 6, 2024, for their involvement in unauthorized access and modification of mobile phones.
The suspects are allegedly part of a larger syndicate that exploits mobile devices to commit crimes such as identity theft, financial fraud, and the illegal extraction of personal information.
The case, like the earlier one, was also sanctioned by the director of public prosecutions and is set to be heard on November 19, 2024.
Phone flashing has become a growing concern due to its potential impact on online businesses and the digital economy. By illegally accessing and modifying the software on mobile phones, these criminals can steal sensitive information such as passwords, financial details, and personal data, which is then used for fraudulent purposes. This illegal activity undermines the security of e-commerce platforms and mobile banking systems, making businesses and individuals vulnerable to cybercrimes.
Cyber security experts warn that phone flashing and related cybercrimes have far-reaching implications for Uganda’s digital economy, especially as more businesses and consumers adopt online and mobile platforms.
The Police have warned both consumers and businesses to take additional precautions to safeguard their digital assets. Experts urge mobile phone users to install robust security features, such as encryption and two-factor authentication, to protect their data from such malicious activities.
As the cases progress, police said they remain committed to dismantling criminal networks that exploit technological vulnerabilities. The crackdown on phone flashing highlights the government's determination to secure Uganda's growing digital landscape and protect its citizens from cybercrime.
Uganda's financial assets under management (AUM) in the Collective Investment Scheme (CIS) market have hit an all-time high, reaching UGX 3.5 trillion (approximately US$ 945.4 million) as of September 2024.
This milestone, detailed in the Capital Markets Authority (CMA)'s latest quarterly bulletin, reflects a rising wave of interest among Ugandans in CIS as a structured, low-risk investment option.
The growth rate is remarkable, marking a 10.5% increase from UGX 3.18 trillion in June 2024 and a year-on-year jump of 54.1% from UGX 2.3 trillion (US$ 613.4 million) in September 2023. This surge underscores the growing appeal of collective investment as an accessible vehicle for wealth accumulation in Uganda.
Collective investment schemes or unit trusts, are investment funds that pool money from multiple investors to invest in a diversified portfolio of assets, such as stocks, bonds, and money market instruments.
Josephine Okui Ossiya, the CMA Chief Executive Officer, attributes the impressive growth to a blend of increased investor awareness and robust regulatory protections. “Ugandans are recognizing the benefits of investing through pooled savings vehicles,” Ossiya noted.
“The regulatory framework has instilled confidence among investors, who are assured of the protection afforded by investing in regulated financial products, such as CIS.” The confidence boost, Ossiya emphasized, has been a game-changer in attracting more participants to the market.
One factor behind this growth is Uganda’s National Social Security Fund (NSSF) midterm access program, which has allowed qualifying members to access part of their savings before retirement. The funds released through NSSF midterm withdrawals have channelled some investments into CIS, creating an opportunity for individuals to grow their savings with a diversified portfolio. This strategic reinvestment has driven CIS adoption and amplified the collective pool of assets.
At the end of September 2024, Government of Uganda bonds accounted for 63.3% of total AUM. The number of funded CIS accounts has risen to 103,950 by September 2024, a 12.8% increase from 92,165 in June 2024. This trend demonstrates that Ugandans from various economic backgrounds are joining the CIS sector in growing numbers. With many investors being first-time participants in Uganda's capital markets, CIS serves as an entry point, offering relatively low initial investment requirements and professional fund management.
Uganda’s CIS sector now stands as the second-largest in East Africa, trailing only Kenya, which boasts assets under management totalling US$ 1.97 billion. Uganda’s CIS assets account for approximately 2% of its GDP, comparable to Kenya’s 2% and significantly higher than Tanzania’s 1.2%. This ranking not only highlights Uganda’s growth within the East African capital markets but also signals the potential for further expansion, as awareness and accessibility improve.
Financial analysts credit the CMA’s regulatory efforts for much of this success. By setting stringent rules and maintaining oversight, the CMA has created a secure environment that encourages more Ugandans to invest. As investment literacy spreads and more people understand the benefits of diversification through CIS, the sector is projected to grow even further.
This surge in Uganda’s CIS market not only reflects rising investor confidence but also aligns with national economic goals. With assets at UGX 3.5 trillion, the sector is supporting financial inclusion, enabling individuals to save, invest, and secure their financial futures.
By expanding participation across socioeconomic levels, the CIS sector strengthens Uganda's financial foundation and creates an environment conducive to sustainable economic growth.
The future of Uganda’s CIS market appears bright, with CMA poised to introduce more investor education initiatives. "As more Ugandans learn about the structured opportunities CIS offers, we expect even broader participation," said Ossiya. "Our focus is to ensure transparency, security, and growth in Uganda’s capital markets for generations to come."
The investment schemes market in Uganda is dominated by UAP Old Mutual, Sanlam Investments, Britam Asset Managers, SBG Securities Limited and XENO.
Across Africa, Donald Trump’s forth-coming second term holds various implications for the continent and its development agenda. The United States remains an important partner in Africa’s growth. Through initiatives like the African Growth and Opportunity Act (AGOA) and the Millennium Challenge Corporation (MCC), the U.S. has sought to facilitate Africa’s integration into the global economy.
Additionally, the U.S. and its Western allies have had a significant influence on governance and democratic development across Africa. The democratization movements in many African countries during the early 1990s were partly fueled by strong pushes from the U.S. and its allies, who viewed bad governance and undemocratic regimes as key drivers of Africa’s political and economic challenges. The U.S. also hosts a large number of African migrants whose remittances are critical to economic growth and livelihoods back home. The African-American community plays an important bridging role in U.S.-Africa relations, and many African countries have sought to attract African-Americans to return and invest in the continent.
Beyond the direct relationship between the U.S. and Africa, the performance of the U.S. economy is crucial to developing markets like those in Africa. U.S. Federal Reserve policy decisions can significantly affect how African countries access international capital markets and service their dollar-denominated debts. Meanwhile, the U.S. military and intelligence agencies continue to play key roles in addressing insecurity in many parts of Africa, despite recent pushbacks in countries like Niger, Mali, and Burkina Faso.
Indirectly, U.S. foreign policy elsewhere—including its approach to China and the Middle East—will affect global stability, which is essential for Africa’s development. It also influences the so-called "new scramble" for Africa among powers such as China, Russia, the U.S., and European nations.
A foreign policy shift under Trump, likely to emphasize an "America First" approach, could further fragment global markets. Such developments may accelerate the institutionalization and expansion of alternative global structures like BRICS, which challenge the U.S.-led world order. All of these changes will have significant consequences for Africa. In all fairness, a second Trump presidency presents mixed implications for Africa. Some of these implications are highlighted below.
1. Funding to Africa to remain consistent, but cuts likely in areas like Climate Change Financing
During his first term, Trump was accused of neglecting Africa. However, despite this criticism, the U.S. still provided an annual average of $7-8 billion in funding to the continent. In comparison, the Biden administration promised to reset U.S.-African relations on a foundation of equal partnership, pledging around $55 billion in funding to Africa over three years, beginning in 2022.
However, a recent U.S. Congressional Research Service report (November 7, 2023) on non-humanitarian State Department and USAID assistance to Africa showed that, despite Biden’s more friendly African foreign policy posture, U.S. funding to the continent remains within the $7-8 billion range annually. Therefore, it is likely that funding under a second Trump presidency will remain consistent with this trend. However, areas like climate change financing may face cuts, as the Trump administration is likely to scale back on many of the Biden-era commitments related to climate funding. The Biden administration’s plan to increase aid under the $55 billion initiative may not materialize, as Trump and the Republican Party will likely reprioritize funding areas according to their own strategic interests.
2. Trade and investment present an uncertain and complicated dynamic
Trade and investment are areas where Trump presents a more complex and uncertain dynamic for Africa. While U.S.-Africa trade and investment relations had advanced during Biden’s term, these gains may face setbacks under Trump, who is likely to focus on areas that align with his "America First" approach to foreign policy. As a result, efforts by the Biden administration to enhance trade and investment with Africa could be watered down or reversed.
This creates a mixed picture for the continent, with countries that align with U.S. strategic interests likely to be prioritized over others. With the current AGOA set to expire in September 2025, its future is uncertain, adding further complexity to trade relations. Trump may use the renegotiation of AGOA to advance U.S. strategic interests on the continent. Additionally, the implementation of the African Continental Free Trade Area (AfCFTA) could complicate matters for the Trump administration. A successful AfCFTA could make the African market strategically important to the U.S., especially if the trade war with China intensifies.
3. Uncertainty in U.S. role promoting Good Governance and Democracy
There is little doubt that the U.S. has been a leading force in promoting governance and democratic reforms in Africa since the fall of the Berlin Wall and the end of the Cold War. Under the Biden administration, the U.S. has used a combination of aid, sanctions, and diplomatic pressure to address democratic backsliding across the continent.
Despite Biden’s ideological commitment to democracy, there were occasions when American interests took precedence over promoting democratic values. For example, the Biden administration took over three months to recognize the military coup in Niger in 2023, which led to the suspension of military aid in accordance with U.S. law.
A second Trump administration is likely to further prioritize U.S. national security interests over ideological promotion of democracy. Trump could use the waiver provision in the 2023 Consolidated Appropriations Act to engage military regimes that align with U.S. interests. This would likely lead to more inconsistent U.S. engagement in Africa, with a more pragmatic, interest-driven approach replacing the promotion of democracy and good governance. This could make efforts to consolidate democracies in Africa more challenging, especially in light of the current backsliding in several countries.
[Ishmael Kwabla Hlovor, PhD, is a lecturer at the University of Education, Winneba, Ghana. Read full story here: https://www.myjoyonline.com/the-return-of-trump-and-its-implications-for-africa/]
MTN Uganda has announced a 29.6% year-on-year increase in profit after tax, totaling Shs 459.4 billion for the nine months ending September 30, 2024.
The growth was largely attributed to exceptional performance in the telecom’s data and fintech segments, aligned with the company’s commitment to digital and financial inclusion in Uganda.
Service revenue grew by 20% year-on-year, reaching UGX2.31 trillion, with strong gains in data (up 30.1%) and fintech services (up 23.5%).
MTN Uganda CEO Sylvia Mulinge attributed this robust growth to the company’s strategic focus on expanding high-demand services while improving operational efficiencies.
“Our substantial growth in profit and service revenue highlights MTN Uganda’s role as a leader in Uganda’s digital transformation journey,” said Mulinge.
“By focusing on our data and fintech verticals and investing in network quality, we have managed to expand access to digital and financial services for millions of Ugandans, while also enhancing profitability.”
The company’s subscriber base expanded by 13.3% to 21.6 million, with data subscribers growing by 24.1% and fintech users by 13.2%. This growth was supported by MTN Uganda’s sustained investment in 4G and the launch of 5G services, providing customers with faster, more reliable connectivity.
MTN Uganda invested UGX298 billion in capital expenditure, primarily to expand its network footprint and improve service quality. This investment supported the rollout of 5G and increased 4G coverage from 83.7% to 87.9%, while also facilitating the extension of the fiber network across the Kampala metropolitan area and key upcountry regions.
“Our investment in digital infrastructure is foundational to delivering a superior customer experience and driving Uganda’s digital economy,” noted Mulinge. “By expanding 4G and launching 5G, we are empowering Ugandans with faster and more reliable connectivity, essential for economic growth and innovation.”
The company’s data revenue growth of 30.1% was driven by a 24.1% increase in data subscribers rising to 9.3 million and a rise in data usage per customer. The company’s device financing strategy also helped increase smartphone penetration, contributing to a 48.5% rise in data traffic.
“Data and fintech are key drivers of MTN Uganda’s growth, and we’re thrilled to see how these services are positively impacting our subscribers,” said Mulinge. “By making mobile and digital services accessible and affordable, we’re enhancing connectivity and enabling financial empowerment across Uganda.”
MTN’s fintech revenue increased by 23.5%, driven by rising mobile money adoption and transaction volumes. Total mobile money transactions reached Shs 114.5 trillion, a 13.3% increase from last year, as the number of active mobile money subscribers also grew by 13.2% to 13.2 million.
EBITDA margin rose to 51.7%, benefiting from a favorable macroeconomic environment and operational efficiencies. This strong financial performance allowed MTN Uganda to declare a second interim dividend of UGX7.5 per share, amounting to a payout of UGX168 billion.
The dividend is to be paid on December 16 to shareholders who will be on the books not later November 26, 2024.
However, investors who will buy MTN Uganda shares after November 21 would not be entitled to the second interim dividend for the period.
Regional political and business leaders have expressed concern about the daunting challenges that the private sector continues to face in regard to trade in the region.
Speaking at East African Business Council (EABC) CEOs-EAC Secretary General meeting at Kampala on November 6, the leaders cited political interference, bureaucratic delays, and inconsistent policies across member States as major bottlenecks that are holding back the bloc’s economic potential.
The EAC, comprising seven member countries - Kenya, Tanzania, Uganda, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo - represents a significant market with a combined GDP of around $305 billion and a population of roughly 300 million people.
By fostering a common market, the EAC seeks to enable free movement of goods, services, capital, and people, thus strengthening intra-regional trade and boosting global competitiveness.
Uganda’s total exports to EAC Partner States increased from USD1.9 billion in 2022 to USD2.2 billion in 2023, while imports from the EAC rose from USD1.07 billion in 2022 to USD 2.23 billion in 2023.
Generally, intra-EAC trade grew by 13%, reaching USD12.1 billion in 2023.
But trade is still uneven, with Kenya accounting for around 36% of intra-EAC trade, followed by Tanzania at 22%, and Uganda at 20%, a situation that has led led to calls for more balanced development and harmonized policies.
Over 80 business leaders and government officials participated in the meeting, including members of the East African Legislative Assembly, ambassadors, and officials from the various Ministries to explore ways to enhance Uganda’s trade and investment ties with her EAC counterparts.
Humphrey Nzeyi, the chairman of the Private Sector Foundation Uganda (PSFU), stated that achieving the EAC’s full potential requires more than market-access; it demands strong institutions, public-private dialogue, the elimination of NTBs, regulatory harmonization, and addressing infrastructure bottlenecks.
Currently, it takes an average of 3–5 days from Mombasa to Kampala and 4–6 days from the port of Dar es Salaam to Kampala. Logistics costs contribute to 40% of manufacturing costs in Uganda. As we look to the future, we must find solutions to these challenges to increase intra-EAC trade to 40% in the next five years, according to Nzeyi.
Rebecca Kadaga, Uganda’s First Deputy Prime Minister and Minister for East African Community Affairs, warned that unless the issue of tariff and non-tariff barriers is addressed, the bloc would never achieve true integration.
For example, she highlighted the bureaucratic obstacles that make it difficult for EAC citizens to travel freely within the region.
“I keep wondering, why do you still need a passport to travel to Tanzania when we are supposed to be one?” She asked.
Veronica Nduva, the new Secretary General of the EAC, urged leaders to address the bottlenecks directly and move from discussion to action. She highlighted ongoing infrastructure developments, such as the construction of the Standard Gauge Railway (SGR) from Naivasha to Kampala, which aims to reduce trade costs and improve transport efficiency.
However, she acknowledged that infrastructure alone is insufficient, emphasizing the need for streamlined policies and a commitment from all member States to ease business operations across borders.
Simon Kaheru, the Vice Chairman of the East African Business Council (EABC), noted that economic development is closely tied to regional integration and encouraged East African business entities to collaborate and expand their footprint across the continent and globally.
Uganda’s private sector showed resilience in October, with business conditions improving steadily as firms reported robust demand and increased hiring. The latest Stanbic Purchasing Managers’ Index (PMI) places the index at 52.9 for October, slightly down from 54.2 in September.
The PMI report, based on data gathered between October 10-29, 2024, highlights continued recovery within the private sector, driven by a surge in demand across key industries. To meet this demand, companies increased their output, hired more staff, and invested in advertising and product quality enhancements.
The PMI surveys purchasing managers to get information about different areas of the economy, such as new orders, inventory levels, production, and supplier deliveries. This can help analysts understand which sectors are growing or contracting.
A PMI above 50 indicates expansion in the manufacturing sector compared to the previous month, while a PMI below 50 represents contraction.
Mulalo Madula, the Senior Analyst at Stanbic Bank, said the sustained output growth reflects Uganda’s favourable demand environment.
“The October PMI results underscore the resilience of the Ugandan economy. Manufacturing companies, in particular, are ramping up hiring as demand climbs, and the backlog of work begins to ease,” she noted.
Compiled by S&P Global, the Stanbic PMI reflects the economic health of Uganda’s private sector by surveying about 400 purchasing managers in various sectors including agriculture, mining, manufacturing, construction, wholesale, retail, and services.
A rising PMI can indicate inflationary pressures, as higher demand for goods and services may push up prices. Consequently, the Central bank and policy makers use PMI data to make decisions about interest rates and other economic policies.
While Ugandan businesses faced a notable rise in costs, including purchase and staff expenses, they responded by raising selling prices.
Input costs, particularly in raw materials and wages, grew across all monitored sectors.
Despite inflationary pressures, the companies passed these costs on to consumers, demonstrating strong underlying demand.
All five surveyed sectors reported increased spending, particularly on wages and raw materials, which drove input price inflation. Wage bills rose as businesses prepared for continued demand, with inventory levels also expanding to accommodate future growth.
“The ability to pass increased costs onto consumers highlights a resilient demand environment. Even with the rising cost of operations, overall business sentiment remains positive, with confidence in future growth,” added Mulalo.
This positive outlook is underpinned by improvements in specific sectors, especially manufacturing and construction, where demand has been particularly buoyant.
The PMI data signals that Uganda’s private sector is on track to maintain its growth trajectory as businesses adapt to rising costs and shifting market dynamics.
As the year closes, the resilience of Uganda’s businesses, coupled with strong demand, suggests that the private sector will continue navigating the challenges ahead, maintaining positive momentum and contributing to economic growth
Uganda is embracing the digital age, and the fintech sector is growing rapidly, transforming how people access financial services. At the forefront of this change is MTN Mobile Money (U) Ltd (MTN MoMo), a leader in mobile financial services that is making it easier for Ugandans to engage with their finances.
MTN MoMo offers a wide range of services, including a robust credit ecosystem that enhances financial access and supports economic growth across the country. Through partnerships with respected financial institutions like NCBA Bank, KCB Bank, PostBank Uganda, and Jumo, MTN MoMo has brought to the customers several innovative products—such as MoKash, MoPesa, XtraCash, MoMo Advance, Mosente, and XtraStock.
These offerings meet the diverse financial needs of our customers, from personal loans for individuals to credit options for small businesses, helping millions of unbanked and underserved citizens simply by dialing 165*5# and following prompts.
Imagine a small shop owner easily ordering new stock or a boda-boda rider obtaining a microloan to purchase another motorcycle.
With services like MoKash, MoSente and Xtracash, customers can access savings, credit, and overdraft options. MTN MoMo has also expanded its network of providers by incorporating KCB, PostBank, and Jumo through the launch of MoPesa, XtraCash, and Mosente respectively.
However, to encourage responsible borrowing, customers can only take credit from one provider at a time and must pay off any previous debts before accessing new credit. The impact of MTN MoMo goes far beyond individual users. Its Zimba Business service is specifically designed to support small enterprises by providing quick loans and enabling seamless merchant-to-merchant payments.
For small business owners, accessing financial resources has never been easier. By dialing *155# and selecting ‘Get Loans,’ entrepreneurs can secure the funds they need to manage their cash flow effectively, pay suppliers on time, and grow their operations without a heavy reliance on cash transactions.
This service not only empowers entrepreneurs but also enhances the overall efficiency of business operations in Uganda. MTN MoMo's innovations also play a crucial role in the broader economy. By offering easy access to credit, the platform boosts economic activity, creates jobs, and helps reduce poverty.
It fosters a culture of entrepreneurship, enabling small businesses to thrive and contribute to the nation’s economic development. As these businesses grow, they create employment opportunities, stimulate local economies, and enhance the overall standard of living in communities across Uganda.
The success of MTN MoMo is evident in the burgeoning fintech sector in Uganda. For instance, in the recently released interim results for nine months of 2024 alone, the number of MTN MoMo users surged by 13.2%, reaching an impressive 13.2 million.
Transaction volumes also rose significantly, increasing by 25.1% to 3 billion transactions valued at UGX114.5 trillion. These statistics underscore how MTN MoMo is enhancing financial access for millions of Ugandans, enabling them to participate more fully in the economy and improve their quality of life.
MTN believes that everyone should enjoy the benefits of a connected life, with access to financial services being a vital part of that vision. The evolution of MTN MoMo's credit ecosystem reflects this commitment, empowering individuals and businesses to overcome financial challenges and seize new opportunities. By continually expanding its service offerings and refining its credit solutions, MTN MoMo is ensuring that financial inclusion remains at the forefront of its mission.
In addition to individual empowerment, MTN MoMo is also contributing to the development of a more robust financial services infrastructure in Uganda. By integrating various financial services and promoting responsible borrowing practices, MTN MoMo is not just facilitating transactions; it is also nurturing a sustainable financial ecosystem. This environment supports innovation and encourages the development of new financial products tailored to meet the needs of diverse consumer segments.
MTN MoMo is therefore more than just a mobile financial service; it is an essential player in Uganda’s economic growth and digital transformation. By facilitating access to crucial financial resources—including savings, credit, overdrafts, utility payments and school fees payments —MTN MoMo stands as a central hub in the financial lives of Ugandans.
Its commitment to promoting inclusivity and economic prosperity is evident in its various initiatives, empowering individuals and small businesses alike. As Uganda continues to embrace digital innovation, MTN MoMo is poised to remain a cornerstone of the nation's journey towards financial inclusivity and economic development.
Jemima Kariuki-Njuguna is the Chief Product Officer at MTN Mobile Money (U) Limited.
The Government has unveiled the Board of Directors for the National Mining Company (NMC) as part of the efforts to enhance its participation in the mining sector.
This initiative is a significant step towards managing Uganda's mineral resources more effectively and ensuring that the government has a stake in the country's mining operations.
The NMC board, chaired by James Mukasa Ssebugenyi and deputised by James Byagaba, includes members with extensive expertise in the sector, such as John Fisher, Agnes Alaba, and Dr. Kevin Aanyu.
The team has been tasked with driving Uganda’s mineral development, increasing national participation, and aligning mineral exploitation with broader economic goals. The establishment of the NMC aligns with a broader reform under a new mining law enacted last year, which aims to incentivize local participation in the mining industry. The NMC is tasked with handling the government's commercial interests in mining, which includes taking a 15% equity stakes in mining licenses.
This initiative aims to support Uganda's ambitious target of expanding its GDP from $50 billion in FY 2022/2023 to $500 billion by 2040, a vision reliant on the strategic growth of the mining sector.
As Uganda’s mining industry gears up for growth, comparisons with other Sub-Saharan countries like Tanzania, Ghana, and South Africa highlight both its potential and challenges.
With significant mineral deposits, including recent gold discoveries valued at approximately $13 trillion, the NMC's role could be crucial in harnessing these resources for national economic development.
Irene Batebe, the Permanent Secretary of the Ministry of Energy and Mineral Development, told the team at the inauguration ceremony that their role is to enhance accountability, transparency, and adherence to a recently introduced policy directive that promotes value addition and prohibits exports of raw materials.
Minister of State for Minerals Phiona Nyamutoro echoed this emphasis on value addition, highlighting the economic and environmental benefits of processing minerals locally. She noted that Uganda can maximize job creation and revenue by adopting modern mining practices and retaining more of the value chain within the country.
Uganda’s mineral potential remains underdeveloped compared to leading Sub-Saharan countries like South Africa, Ghana, and Tanzania, where mining contributes significantly to their economies.
Board chair James Mukasa Ssebugenyi expressed optimism that they would deliver according to expectations.
“As Uganda aims to emulate the mining successes of its Sub-Saharan counterparts, the NMC’s new board faces a daunting but promising journey. By aligning Uganda’s mining operations with international standards, prioritizing value addition, and securing better funding, the NMC hopes to transform Uganda’s mineral wealth into a robust pillar of economic growth,” he said.
With the Board in place, the management team would be set up to run the institution.
Officials said that when it is fully operational, the NMC would improve the regulatory framework for the mining sector, ensuring compliance with environmental and social standards.
Voters in the United States today go to the polls to choose the 47th president of what is the world’s largest economic and military superpower, in an election that is not only tight in the US, but is also being closely watched around the world, including Africa.
The contest between Democratic candidate, Vice President Kamala Harris, and Republican’s Donald Trump, a former president, is said to be very tight.
Africans have a reason to follow the election given the implications that the outcome would have on the continent.
The Voice of America reported early this week that international relations analysts say the outcome of next week’s election in the United States would have a profound influence on Washington’s relations with Africa, especially regarding trade, security and climate change initiatives.
In Trump’s first four-year term as president, his approach to Africa ranged from outrageous contempt to complete neglect. For example, he made no trips to the continent and showed little interest in its major issues such as climate change.
Trump did, however, launch the Prosper Africa initiative to support American investors and the growing middle class across Africa. However, if re-elected, he is expected to focus his policies on national interests in line with his ‘America First’ mantra.
While Harris toured three African countries in March 2023, she is said to be no more ambitious for the continent than her rival and is widely expected to continue with incumbent President Joe Biden's Africa policy.
Of course, even Biden has paid little attention to the continent, although he still plans to visit Angola in early December, just weeks before the end of his term in early January.
Some Africans are espousing a faint glimmer of hope that given that Harris has African roots, she would be more sympathetic to the continent.
However, in a recent report, the US-based Centre for Strategic and International Studies said the notion that a U.S. president with African roots would somehow fundamentally elevate the continent’s importance in Washington was quickly dispelled by a Barrack Obama administration that did not stray far from traditional orthodoxy toward Africa: braying about democracy and human rights while also pursuing national security interests that often ran contrary to the Americans’ stated values.
“Neither Donald Trump nor Kamala Harris, who have ignored Africa over the course of their campaigns, have done anything to give Africans the impression that their administrations would be appreciably different from the past,” it said.
Whereas it argued that Harris would continue with Biden’s agenda, it also noted that the litmus test for a potential second Trump administration would be whether he can continue to articulate Africa’s inherent value to U.S. strategic interests or if he would revert back to the kinds of insensitive remarks that defined his first term in office.
On the US-Africa trade front, the next administration will first have to renew the Africa Growth and Opportunity Act (AGOA), the Clinton-era trade platform that remains a cornerstone of U.S. Africa policy and which has barely a year to run.
But while it remains a defining program of the U.S. relationship with Africa, its promise remains unfulfilled and uneven. Only 32 of Africa’s 54 countries currently qualify for duty-free access to the U.S. market under AGOA, while more than 80% of AGOA benefits accrue to only five countries.
Expanding AGOA’s reach and impact should be central to its renewal, but this would require a break from recent precedent in which the Biden administration stripped more countries (seven) of their AGOA eligibility, including Uganda, than it restored (two) - the most suspensions by any president.
He accused the countries of non-compliance with the AGOA eligibility criteria. Launched in 2000, AGOA grants exports from qualifying countries duty-free access to the U.S. market. Discussions are already under way over whether to extend it and for how long.
The European Union (EU) has pledged EUR 150 billion (about UGX602 trillion) to support the energy transition in Sub-Saharan Africa over the next 15 years, as part of its Global Gateway strategy.
Speaking at the Renewable Energy Conference in Kampala on October 31, Jan Sadek, EU Ambassador to Uganda, emphasized the critical role of the Global Gateway in meeting Uganda’s and the region’s energy needs.
“Our ambitious goal is to mobilize 300 billion Euros by 2027 across the globe, with 150 billion Euros of investments as the target for Sub-Saharan Africa. Some EUR 3.4 billion of EU funding is dedicated to support the transition to renewable energy and enhance energy efficiency in Sub-Saharan Africa. Through these investments, we aim to deploy at least 50 GW of additional renewable electricity and connect at least 100 million people to electricity across the continent by 2030,” he said
Clean energy, which includes solar, wind, hydro, geothermal energy, among others, refers to energy derived from renewable, zero-emissions sources that do not destroy forests or pollute the atmosphere when used.
Though Uganda is one of the African countries that are still lagging behind in clean energy access, the country’s Vision 2040 aligns closely with the EU’s climate resilience objectives, and the Global Gateway funding could help bridge the gaps and accelerate Uganda’s and the region’s path toward energy independence and environmental sustainability.
“As Uganda’s largest development ally, we mobilize financing that seeks to leverage investments, both private and public, that prioritize green and climate transition, sustainable growth, and job creation,” he said.
He added; “Team Europe is at the forefront of key initiatives, catalyzing progress through strategic investments and collaborative efforts, with a focus on rural electrification, renewable energy, and regional energy connectivity.”
He noted initiatives and flagship programs of Team Europe that seek to support a just and clean energy transition in line with Uganda’s Vision 2040 and National Determined Contribution (NDC), as well as its ambitious Energy Transition Plan launched at the climate COP28 in Dubai in 2023.
At the conference, Hon. Ruth Nankabirwa, Uganda’s Minister of Energy and Mineral Development, called upon Ugandans to transition to cleaner, healthier cooking methods, emphasizing the role of Liquefied Petroleum Gas (LPG) as a more sustainable and economical option.
“It’s time for Ugandans to embrace clean cooking methods and abandon traditional practices that not only harm the environment but also pose serious health risks,” Nankabirwa stated.
Dispelling common misconceptions, Nankabirwa added, “Using LPG is actually more economical than charcoal when used efficiently. It not only saves money but also conserves our forests and reduces the burden on healthcare services due to fewer smoke-related illnesses.”
Her call to action aligns with Uganda’s Vision 2040 and reflects the government’s commitment to sustainable development.
Nankabirwa recently signed a Supply and Purchase Agreement with Global Gases Group to establish a Liquefied Petroleum Gas (LPG) storage facility and cylinder manufacturing and filling plants, aimed at boosting LPG usage across the country.
The company would produce 500,000 cylinders of various sizes (3 kg, 6 kg, and 12 kg) annually for Ugandan consumers.
Uganda officially launched its ETP at the 2023 United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates, which marked the conclusion of the first ‘global stocktake’ of efforts to combat climate change.
In the past five years, the EU has mobilised for the EU-Uganda energy partnership about EURO 200 million in grants, with the potential to attract more than EURO 1 billion in investments, officials said.
A multi-billion-dollar investor based in Dubai in the United Arab Emirates (UAE), has acquired a majority stake in the Uganda Telecommunications Corporation Limited (Utel) following the signing of an agreement with the Government of Uganda.
According to a press release, Dr. Chaher Al Taki, the proprietor of Rowad Capital Commercial (RCC), signed the deal with Uganda’s Minister of ICT and National Guidance, Dr. Chris Baryomunsi, at an event that was witnessed by President Yoweri Museveni at State House, Entebbe.
In his remarks, President Museveni stated that the milestone was important because the government is keen on creating jobs for Ugandans. “Our main interest is to get investors to create wealth and jobs,” he said.
Al Taki said he was extremely delighted to finally see the project come to fruition and pledged to open up other new projects in Uganda.
“I am very happy to be here at the State House to meet His Excellency President Museveni and the government officials who have come to bless the signing of the agreement. Uganda is our second home, and we can invest in more projects here as we had promised,” he said.
Reports of RCC’s interest in Utel first emerged in August when press reports suggested that Rowad Capital Commercial was keen to invest an initial $225 million in it’s the telecommunications operator in exchange for a 60% stake.
Founded in 2017, RCC comes on board to faceoff with stiff competition in a telecommunications market dominated by South Africa’s Mobile Telecommunications Network (MTN) and Airtel Uganda, a subsidiary of Bharti Airtel Limited, a global telecommunications company based in India.
Following the splitting of Uganda Posts and Telecommunications Corporation in 1998, UTL was partially privatized in 2000, with a consortium led by Telecel International and the Dhirani Group acquiring a 51% stake. The government retained a 49% share. This marked the start of UTL as a private-public partnership and led to significant modernization of the telecom infrastructure.
In the early 2000s, UTL rapidly expanded its operations, providing both fixed-line and mobile telephony services. During this period, it introduced internet services and mobile solutions such as Mango, a mobile service provider.
However, competition in the Ugandan telecom market intensified as other telecom companies like MTN Uganda and Airtel Uganda gained a foothold, challenging UTL's dominance.
By the mid-2010s, UTL began experiencing severe financial difficulties. Competition, mismanagement, and growing debt resulted in significant challenges for the company.
The Libyan investment fund Libyan Post, Telecommunication, and IT Company (LPTIC), which had acquired a major stake in UTL after Telecel International's exit, faced sanctions following the fall of Muammar Gaddafi's government, further complicating UTL's financial situation.
In 2017, UTL was placed under provisional administration due to its heavy debts, and the Ugandan government took control of the company. At the time, the company’s debts were estimated to be around UGX700 billion (approximately $190 million). The government subsequently expressed its intent to find new investors to restore the company’s operational capacity.
Analysts say Utel remains an important part of Uganda’s telecom landscape, particularly if Government Ministries, Departments and Agencies (MDAs) are directed to acquire their mobile, fixed-line, and internet services from it.
In 2018, the government sought to have Utel take over certain NITA-U responsibilities, such as providing internet services to MDAs. This decision came under a presidential directive, emphasizing that all government ministries, departments, and agencies (MDAs) should switch to UTL for internet services.
NITA-U, which Parliament recently blocked from being rationalized (scrapped), has resisted this shift, citing concerns over service duplication and billions worth of outstanding payments owed by MDAs to Utel.
The majority of Ugandan users of the Mombasa Port in Kenya are happy with the progress the Kenya Ports Authority (KPA) has made in making the clearance of cargo more efficient over the past years.
According to an independent Customer Satisfaction Survey, KPA received a customer satisfaction index of 79%, up from 70% in 2020. The study, which was carried out by SBO Training Ltd, a research firm based in Nairobi, involved respondents from seven countries that use the port of Mombasa for both imports and exports.
A total of 1,232 respondents were interviewed in the study, about 250 of which were based in Uganda. More than half of those interviewed reported noticing notable changes at the port over the past year, particularly the adoption of modern technology, which they said has improved service delivery at the Port.
In particular, Ugandan customers were the happiest with the innovations that the KPA has introduced in the last five years. Uganda is KPA’s biggest Transit customer, with cargo destined for Uganda taking the largest share of KPA Transit markets. The study aimed at determining customer expectations and establishing the level to which KPA is meeting their expectations.
Speaking at the dissemination of the findings in Kampala on October 24, Boniface Ngahu, the SBO Training managing director, said there was general improvement in customer satisfaction with KPA across the region.
“For embracing modern technologies and being innovative, Uganda rated KPA higher than other markets across the various parameters such as customer care, stakeholder relations, among others,” he said. He added; “KPA needs to keep on innovating in order to further enhance the customer experience and drive customer satisfaction in future.”
Generally, all aspects measured recorded improvements in the current survey. KPA was seen to have embraced modern technology by a whopping 87% of respondents. Areas that were cited included equipment acquisition and modernization (cranes). Trust in KPA has also rose from 68% to 84%.
Kargo Pay, the new 24/7 payment system introduced last year, was the most notable change mentioned. The hi-tech system enables a customer to make payments remotely and has been hailed as a game-changer for its convenience, flexibility, and efficiency in settling port charges.
The study further shows that container traffic at the port stands at about 1.8 Million Twenty-foot Equivalent Units (TEUs), higher than the pre-pandemic level of about 1.4 TEUs. Uganda accounted for more than 6.2 million tonnes of imports in 2023, edging closer to the pre-pandemic level of 7.6 metric tonnes.
However, Uganda’s exports exceeded the pre-pandemic level of 486,000 metric tonnes, almost doubling to about 829,400 tonnes in 2023. KPA has rolled out an ambitious four-year strategic plan aimed at improving customer experience by providing responsive services that exceed customer expectations. It aims to attain a Customer Satisfaction index of 75% by 2027.
Core to this plan is a digitalization and integration plan to upgrade the terminal operating system, ensure end to end automation, real time information on operations as well as ‘smart’ gates. These initiatives are intended to reduce Truck Turn Around time to two days.
Peter Masinde, who represented William Ruto, the KPA managing director, said they are committed to improving service delivery. “My assurance is that we are equally concerned about the truck turnaround times and we are focused on improving efficiency,” he said.
He said the process of upgrading their operating system is already underway and it would enable them to process everything faster to ensure that there is no delay. He added that they have already commissioned a project for the real-time recording and availability of the containers at the port, among other innovations.
The economies of the regional partners expanding thus increasing the volumes of cargo – over 90% passes through the port - which has necessitated the need for automation and process re-engineering for world-class efficiency in cargo handling.
The survey dissemination event was attended by top exporters and importers, shipping lines, association representatives as well as forwarding and logistics companies. Miriam Mwakundia, the KPA manager marketing and customer experience, said plans are underway to give a ‘green channel’ to Ugandan Authorized Economic Operators (AEOs), currently estimated at about 140 and covering about 40% of the international trade value.
In the recommendations, Ngahu said KPA needs to sustain service delivery initiatives that have supported the current improvement in customer satisfaction. The Ugandan business community gave glowing tribute to the KPA team in Uganda, led by Betty W. Mkonyi, saying they are always supportive when approached for assistance.
Uganda’s coffee sector has achieved a historic milestone, with export earnings reaching an unprecedented US$1.4 billion from 6.35 million 60-kg bags in the 2023/24 coffee year, which concluded on September 30.
This figure reflects a significant increase from the previous year’s US$940.1 million from 6.14 million bags, according to the report, which was compiled by the Uganda Coffee Development Authority (UCDA).
While this growth signals a promising trajectory for Uganda's coffee sector, it is also marred by a contentious debate over the proposed dissolution of the UCDA), the regulatory body that has superintend the growth of the country’s coffee industry for over three decades.
Even more disturbing is the fact that no concrete action plan has been shared about how the booming coffee industry would be developed and regulated after UCDA is disbanded. Not surprisingly, the proposed move has been met with vehement opposition, particularly from stakeholders and lawmakers representing coffee-growing regions.
Coffee remains Uganda’s top export product, contributing significantly to the country’s economy and providing a livelihood for millions of Ugandans. Members of Parliament from coffee-growing regions argue that dissolving UCDA would undermine the progress achieved through decades of targeted regulation, quality assurance, and farmer support.
According to data from UCDA, nearly 75% of Uganda’s coffee exports were destined for European markets in the coffee year, with Italy, Germany, and Belgium as the primary importers.
In the 2023/24 coffee year, Italy imported over 1.5 million 60-kg bags of Ugandan coffee, valued at approximately UGX 1.4 trillion, followed by Germany with about 1 million bags worth UGX 950 billion, and Belgium with 800,000 bags valued at around UGX 760 billion.
This reliance on Europe speaks volumes about the need to ensure strict compliance with EU quality standards, a responsibility expertly managed by UCDA’s rigorous quality protocols.
Regional African markets, including Morocco, Sudan, and Kenya, also rely on Ugandan coffee. Morocco imported around 400,000 bags valued at UGX 360 billion, while Sudan and Kenya collectively imported nearly 300,000 bags, worth approximately UGX 270 billion.
Also among the reasons for the record export earnings, were UCDA’s monitoring and evaluation visits that were also carried out in the coffee growing regions, targeting farmers and other stakeholders. Additionally, numerous radio talk shows were aired across various regions for purposes of sensitisation particularly in regard to the European Union Deforestation Regulations (EUDR), which are due to take effect in January 2025.
Global coffee production is expected to increase by around 7.1 million bags in the 2024/25 coffee year, driven by output recoveries in Brazil and Indonesia. With intensifying competition, stakeholders are worried that Uganda risks losing its competitive edge if UCDA is scrapped.
“Our coffee sector’s premium reputation is tightly linked to UCDA’s consistent enforcement of quality and export standards,” notes Ismail Kivumbi, a coffee farmer and analyst. “Any compromise in quality could damage Uganda’s reputation and affect revenues in this competitive global market.”
“The UCDA has been instrumental in establishing Uganda’s coffee on the global market. Dismantling it could erase years of development and jeopardize smallholder farmers' incomes,” says Asinasi Nyakato, the Woman MP for Hoima City.
The coffee sector’s advocates emphasize the need for specialized regulation, as seen in other successful coffee-producing nations.
Florence Kabugho, the Woman MP for Kasese, says; “In successful coffee-producing nations, coffee is regulated by specialized agencies. Uganda must adopt this model to avoid regulatory risks.”
Analysts say that, Uganda’s coffee industry has grown to contribute over 15% of the country’s export earnings, largely due to UCDA’s efforts in quality assurance, training, and market promotion. As the contention around the proposed rationalization continue, stakeholders and policymakers must consider the potential risks to Uganda’s hard-won global reputation as one of the world’s leading producers of premium coffee.
The adoption of electric motorcycles (EVs) in Uganda is gaining significant traction, particularly in the boda boda industry, which remains a vital source of livelihood for millions of Ugandans.
As the country grapples with increasing environmental concerns, the shift toward electric motorbikes offers a promising solution. Currently, electric motorcycles account for about 10% of the boda boda fleet in Kampala, a notable figure, in comparison to neighbouring countries.
For instance, in Kenya, electric motorbikes comprise approximately 15% of the boda boda industry, while in Tanzania the figure stands at around 5%.
Christian Kamukama, the head of Commercial at Watu Uganda, says EVs are gaining popularity as they can reduce fuel and maintenance costs by up to 70% compared to traditional petrol-powered motorcycles.
“This makes them not only a more affordable option but also an environmentally friendly alternative,” he explains.
Unlike internal combustion engines, EVs produce zero emissions, which is beneficial for the environment. This is particularly important in cities like Kampala where air pollution is a major concern.
EVs are much quieter than traditional motorcycles, thus reducing noise pollution. Most importantly, EVs have fewer moving parts compared to fuel-powered motorcycles and servicing them leaves less waste. This means less wear and tear and, consequently, lower maintenance costs. The rider, for example, doesn’t have to worry about changing engine oil, spark plugs, etc.
Unless they are involved in major accidents, EVs can often last longer than their fuel-powered counterparts, meaning the owner could get many more miles out of them before needing a replacement.
Watu Uganda is piloting a vertically integrated business model by partnering with battery manufacturer Gogo Electric and leading motorcycle manufacturers, as it provides the financing.
With an initial deposit of just under 20% of the total cost, the riders may take the asset and pay back their loans over a number of months. To facilitate the adoption of EVs, the company has established swap stations and supportive infrastructure in various parts of the city.
EV riders who talked to this publication said they are happy with their assets as the amount of money required to buy petrol to cover a few dozen kilometres is enough to swap a battery that can run hundreds of kilometers.
Additionally, EVs are also presenting an opportunity to other Ugandans in terms of employment. For example, Gogo Electric, Watu’s partner, dozens of Ugandans, including women, at its factory at Nakawa, with locally made EVs comprising 40% of local content.
In a bid to incentivise the adoption of EVs, the government is offering substantial support to battery producers such as Gogo Electric, as part of a broader strategy to encourage sustainable transportation and reduce environmental impact.
In this year’s budget, the government introduced a 0% VAT rate on the supply of electric motorcycles manufactured or assembled in Uganda. Additionally, there are exemptions from stamp duty and income tax for EVs, which further lowers the cost of ownership and encourages manufacturers to produce more.
As part of the National e-Mobility Strategy, the government has announced plans to install electric vehicle charging infrastructure at all public offices by 2030. This initiative aims to create a supportive environment for EV users.
The government is also focusing on training programs to enhance skills related to EV technology and maintenance, ensuring that there is a knowledgeable workforce to support the growing EV industry.
Uganda has become one of the two African countries that have been admitted into the BRICS alliance in the category of ‘partner states.’
In a post on a post on X (formerly Twitter) during their Summit in Kazan, Russia, the BRICS group said; “BRICS officially added 13 new nations to the alliance as partner countries (not full members).”
The other countries that have joined as ‘partner nations’ include; Algeria, Belarus, Bolivia, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uzbekistan, and Vietnam. However, these countries, including Uganda, were added as partner countries and not full members.
Originally launched by Brazil, Russia, India and China, the bloc previously added only one new member - South Africa in 2010 - since its inception in 2006.
Today, BRICS boasts of nine full members including Iran, Egypt, Ethiopia, and the United Arab Emirates, which were granted full membership in January this year. These four countries attended their first BRICS summit as full members at the 2024 gathering in Kazan, Russia.
Russia holds the rotating BRICS presidency this year and has set out to use its time as chair to focus on establishing a more “fair world order.” Another 17 countries had expressed a desire to join the bloc.
Top leaders from 36 countries, as well as the UN Secretary General, attended the three-day summit in Kazan, under the theme; “Strengthening Multilateralism for Just Global Development and Security.”
For countries like Uganda, joining BRICS represents not just an opportunity for economic growth, but a chance to break free from the financial constraints imposed by institutions that have long favoured the Global North – North America and Western Europe.
In a resolution after the summit, members said; "We recognise the widespread benefits of faster, low cost, more efficient, transparent, safe and inclusive cross-border payment instruments built upon the principle of minimizing trade barriers and non-discriminatory access. We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners."
However, amid struggles for cohesion and consensus among the bloc members, observers pointed out that as the bloc grows, the leaders must ensure that the founding principles of BRICS—non-alignment, sovereignty, and inclusivity—remain central to its mission.
For developing countries like Uganda, membership in BRICS presents an opportunity to shape the global narrative, to participate in a system that focuses on fairness, and to contribute to a bloc that is leading the charge towards economically challenging the West.
Uganda sees being part of BRICS as a pivotal step toward diversifying its trade relationships as it can tap into the vast markets of member countries, which collectively represent approximately 3.3 billion people - about 40% of the global population - and over 25% of global GDP (World Bank, 2023).
The BRICS nations also account for 16% of global trade and hold significant reserves of natural resources, making them crucial trading partners for countries like Uganda.
Analysts say that Uganda's inclusion in BRICS could stimulate foreign direct investment (FDI) in several critical sectors. The country’s GDP, which relies heavily on agriculture, is projected to benefit significantly from investments in oil, minerals, and infrastructure development.
According to the African Development Bank, African nations are increasingly seeking to assert themselves in international trade through partnerships emphasizing mutual benefit and economic development. The shift toward South-South cooperation is vital for countries like Uganda, which aim to reduce dependency on Western markets.
“BRICS provides a platform for African countries to engage on more equal footing with major economies,” the AfDB said in a recent report.
A Ugandan delegation, led by Gen. Wilson Mbasu Mbadi, Minister of State for Trade, Industry, and Cooperatives, is in Serbia for the Joint Commission for Trade Cooperation session in the city of Niš.
This trade mission seeks to reactivate the trade agreement signed in Entebbe in 1963 between Uganda and Yugoslavia, as well as to actualize further agreements made by President Yoweri Museveni and his Serbian counterpart, H.E. Aleksandar Vučić, last July, including a Bilateral Air Services Agreement.
The Joint Commission is built upon the Trade Agreement between the Government of the Socialist Federative Republic of Yugoslavia and the Government of Uganda, signed in Entebbe in September 1963.
As the successor of the former Yugoslavia, the Republic of Serbia continues to honor this agreement, which provides preferential tax treatment for Ugandan products.
A press release said the delegation is composed of officials from the Ministry of Trade, Industry and Cooperatives, Ministry of Foreign Affairs, Ministry of Works and Transport, Ministry of Agriculture, Animal Industry and Fisheries, State House Diaspora Affairs Unit, Uganda Exim Limited, Uganda Civil Aviation Authority, and Uganda Airlines.
Upon arrival, the Ugandan delegation was received by Uganda’s Trade Representative in Serbia (Balkans), Bratislav Stoiljkovic, before visiting the Uganda Connect Hub in Belgrade, a vibrant marketplace promoting and selling Ugandan products.
They also had the opportunity to visit the Museum of Yugoslavia also known as the House of Flowers, which houses the resting place of former Yugoslavia President Josip Broz Tito, providing the team with insights into Serbia’s rich history and cultural heritage.
The potential for revitalizing this agreement is underscored by recent trade figures. In 2023, Uganda's total exports to Serbia were approximately 18.5 billion UGX (about $5 million), primarily consisting of coffee, tea, and spices.
Conversely, Uganda imported around UGX11.1 billion UGX (about $3 million) worth of goods from Serbia, predominantly machinery and pharmaceuticals. While these figures represent a modest trading relationship, they also highlight significant room for growth.
The majority of Uganda’s exports to Serbia consist of agricultural products, particularly coffee (which accounts for about 90% of the total exports).
With global coffee demand rising, establishing a stronger foothold in Serbia could facilitate access to European markets.
Odrek Rwabwogo, the chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), highlighted the agreement's potential benefits not just for Uganda but for East Africa as a whole.
“Reviving the 1963 treaty is an economic breakthrough,” he noted, expressing optimism about the future of trade relations between Uganda and Serbia.
Against the backdrop of these discussions and the potential for enhanced economic collaboration, both nations are poised to explore new avenues for trade and investment.
The revival of the trade agreement from 1963 marks a significant step toward establishing a robust economic partnership that could greatly benefit both Uganda and Serbia in the years to come.
“By leveraging Serbia's market and strategic location, Uganda stands to gain access to a stable European market, diversify its export base, and acquire valuable goods that could bolster its economic growth,” Rwabwogo added.
The International Monetary Fund (IMF) has painted a positive picture of Uganda’s economic growth prospects, posting a 5.9% growth projection, according to the latest World Economic Outlook report, which is above the average of 4.2% for Sub-Saharan Africa.
On another positive note, the IMF says Uganda’s annual inflation has dropped from 5.3% in 2023 to 3.4% in 2024, lower than Kenya’s 5.1% and Rwanda’s 4.9%.
However, Uganda’s revenue performance as a percentage of GDP is still the lowest in the region - standing at about 14.8%, compared to Burundi’s 23%, Rwanda’s 22.6%, Kenya’s 17.5%, and Tanzania’s 16%.
According to the IMF, Uganda has navigated the post pandemic for recovery well due to “sound macroeconomic policies.”
The economic recovery is strengthening with low inflation, favorable agricultural production, and strong industrial and services activity. While public debt is sustainable, low tax revenues constrain Uganda’s fiscal policy space.
Strengthening domestic revenue mobilization and budgetary and cash management practices are key to securing a durable fiscal space. The Bank of Uganda’s tight monetary policy stance has helped anchor inflation expectations and counter external sector pressures.
At their IMF Caucus meeting in New York on October 22, Finance Ministers from African countries noted that geopolitical fragmentation, elevated borrowing costs, and the ongoing high cost of living are creating a challenging backdrop for policy making on the continent.
Wale Edun, Nigeria’s Minister of Finance and Chair of the African Caucus, and Kristalina Georgieva, Managing Director of the IMF), said in a press statement that some countries are also facing social instability and insecurity which imposes heavy human costs on populations while also undermining growth prospects and exacerbating economic vulnerabilities.
“Renewed focus on enhancing domestic resource mobilization is critical and it should be supported by governance reforms to improve public financial management, fiscal transparency, and enhance accountability. We welcome the launch of the Joint Domestic Resource Mobilization Initiative (JDRMI) by the IMF and World Bank which seeks to improve domestic revenue mobilization, enhance spending efficiency, and develop domestic financial markets,” they said.
Generally, the IMF report shows that global growth is expected to remain stable yet underwhelming, with risks to the global outlook tilted to the downside amid elevated policy uncertainty.
In several regions, disruptions to production and shipping of commodities—especially oil—conflicts, civil unrest, and extreme weather events have led to downward revisions to the outlook for the Middle East and Central Asia and that for sub-Saharan Africa.
However, despite the good news on inflation, downside risks are increasing and now dominate the outlook. An escalation in regional conflicts, especially in the Middle East, could pose serious risks for commodity markets. Shifts toward undesirable trade and industrial policies can significantly lower output relative to our baseline forecast.
Monetary policy could remain too tight for too long, and global financial conditions could tighten abruptly.
Pierre-Olivier Gourinchas, the IMF Economic counsellor, suggested in a blog that the global battle against inflation has largely been won, even though price pressures persist in some countries. After peaking at 9.4% year-over-year in the third quarter of 2022, headline inflation rates are now projected to reach 3.5% by the end of 2025, below the average level of 3.6% between 2000 and 2019.
But whereas the global decline in inflation is a major mile stone, downside risks are rising and now dominate the outlook: an escalation in regional conflicts, monetary policy remaining tight for too long, a possible resurgence of financial market volatility with adverse effects on sovereign debt markets.
The report also shows that change in global monetary conditions is easing the pressure on emerging market economies, but that much more needs to be done to improve growth prospects and lift productivity, as this is the only way we can address the many challenges we face: rebuilding fiscal buffers, aging and declining populations in many parts of the world, young and growing populations in Africa in search of opportunity, tackling the climate transition, increasing resilience, and improving the lives of the most vulnerable, within and across countries.
Just one out of every 100 Internet users in Uganda are utilizing it for business or work, the 2024 National Population & Housing Census has shown.
The report shows that only 9% of individuals aged ten years and above - about 2.8 million people - used internet facilities in the 12 months prior to the census, with just 13% of them using it to make money or improve their businesses, which highlights a significant barrier to economic growth, according to experts.
In an increasingly digitalised world, where connectivity is essential for innovation and operational efficiency, the low figures of internet use underscore the urgent need to address the challenges surrounding internet access.
According to the International Telecommunication Union (ITU), as of 2022, only 63% of the global population had internet access, with this figure dropping to a mere 28% in least developed countries (LDCs). This stark disparity not only stifles individual potential but also hampers business growth.
A major factor contributing to low internet uptake is inadequate infrastructure. Many areas, particularly rural and underdeveloped regions, lack the necessary telecommunications networks to support reliable internet access.
A report by the World Bank indicates that approximately 1.7 billion people worldwide remain unconnected, often due to geographic isolation or the high costs associated with laying down internet infrastructure.
The consequences of low internet uptake are particularly pronounced in the business sector. Without reliable internet access, companies struggle to adopt digital tools that enhance efficiency, streamline operations, and expand market reach. Research from McKinsey suggests that businesses fully embracing digital technologies can boost productivity by up to 40%.
Richard Irumba, an IT officer at ATACAM, underscores the critical role of internet connectivity in fostering business innovation. “In many regions, the lack of internet access stifles creativity and prevents businesses from exploring new markets,” he explains. “Without the ability to connect with suppliers, customers, and collaborators online, businesses cannot compete effectively in today’s global economy.”
According to Irumba, the effects of low internet uptake are particularly detrimental to small and medium-sized enterprises (SMEs). These businesses often rely on affordable digital marketing strategies to reach customers, but without internet access, they miss out on vital opportunities. A survey by the Global SME Finance Forum indicated that 70% of SMEs in developing countries identify unreliable internet connectivity as a significant barrier to growth.
Furthermore, low internet uptake can lead to job losses and economic stagnation. A study by the Brookings Institute found that regions with higher internet penetration experience faster job growth and increased entrepreneurship. In contrast, areas with limited access tend to see fewer start-ups and diminished innovation, perpetuating cycles of economic disadvantage.
In Uganda, where start-ups are emerging rapidly, the lack of internet access can stifle innovation and limit market reach.
Dr. Edward Katto, a prominent Ugandan economist says the internet is not just a tool; it’s a lifeline for start-ups.
“In a competitive landscape, connectivity enables entrepreneurs to access markets, secure funding, and collaborate effectively,” he says.
This reflects the urgency of improving internet access to support the burgeoning start-up ecosystem in the country.
As Irumba Richard notes, bridging the digital divide is not just a technological challenge; it is an economic imperative. By prioritizing internet infrastructure, the country can unlock the full potential of businesses and foster sustainable economic growth globally.
MTN Uganda, through its corporate social responsibility arm, MTN Foundation, has earmarked UGX390 million to establish fully furnished computer labs in six educational and training institutions across the country.
This initiative, part of MTN’s ongoing Digital Access Program, aims to equip Uganda’s future leaders with access to modern technology.
The six beneficiary institutions—St. Catherine Girls Secondary School in Kazo District, Tunaweza Foundation and Code Campus in Mbuya, Kampala, St. Joseph’s Seminary Nyenga in Buikwe District, Revival Girls in Mbarara District, and St. John’s Secondary School in Sheema District—are now being equipped with 10 state-of-the-art computers, backup power systems, and a year of free internet access.
This reflects MTN’s dedication to ensuring every Ugandan student can succeed in today’s digital age.
Bryan Mbasa, Senior Manager at MTN Foundation, emphasizes MTN Uganda’s belief in the transformative power of digital inclusion.
"We want these computer labs to be more than just rooms filled with machines. We see them as gateways to endless opportunities, where students, especially young women, can gain vital digital skills, broaden their knowledge, and prepare to thrive in the global digital economy."
This initiative, Mbasa said, aligns with MTN Uganda’s ambitious 2025 Strategy, which focuses on digitally transforming the country and bringing everyone into the digital fold, regardless of socio-economic status. By supporting Uganda’s Vision 2040 and National Development Plan III, MTN is actively contributing to a future where digital skills drive economic growth and equality.
Sr. Jane Kanga, the enthusiastic Headmistress of St. Catherine Girls Secondary School, expresses her excitement over the impact of the support.
"MTN, you’re our hero! This is more than just a computer lab—you have given our girls the keys to their future. Our students are now dreaming bigger and aiming higher. We are excited to see them learn and grow in ways we never imagined before,” Sr. Kanga, whose educational institution received the support a few weeks ago.
Victo Nalule, the Executive Director of Tunaweza Foundation, one of the beneficiaries, commended MTN Uganda for the support, noting its impact on vulnerable community members.
“These computers will significantly enhance our ability to equip our youth, including those with disabilities, with vital digital skills,” she said, highlighting that over 500 people would benefit from this initiative within their operating surroundings.
With over 75% of Uganda’s population under the age of 30, the country’s youth hold enormous potential. However, many young people, particularly young women, face significant challenges, such as high unemployment rates.
According to the World Bank, 16.3% of young women in Uganda are unemployed, compared to the national average of 11.7%. MTN Uganda’s Digital Access Program is addressing these challenges by providing young women with the digital skills necessary to succeed in an increasingly connected world.
Mbasa also highlights the broader importance of MTN’s contribution: "We are committed to helping Ugandan students overcome barriers that prevent them from accessing quality education and digital skills. By doing this, we believe we are unlocking not only their potential but also the potential of our nation."
To date, MTN Uganda has established ICT labs in over fifty-seven educational institutions nationwide, including six technical institutes such as Amelo Technical Institute in Adjumani, St. Simon Peter’s Vocational Training Centre in Hoima, and St. Daniel Comboni Polytechnic in Moroto.
The ICT labs are installed with MTN Skills Academy to enable training in digital skills for digital jobs. To register and learn at no cost click skillsacademy.mtn.com.
Asset financiers, Watu Uganda, have called for a more balanced approach to managing the boda-boda industry amidst growing concerns over safety, pollution, and traffic congestion in the country. The company argues that while the boda-boda industry faces challenges, it remains pivotal to Uganda’s economy and transport network.
Christian Kamukama, Watu’s head of commercial, stressed the importance of preserving the boda-boda industry, citing its significant role in providing essential services to urban and rural communities.
"For those who believe this industry should be eliminated, that’s an understandable viewpoint but one that lacks a broader perspective. Boda-boda’s are not just income-generating machines. In rural areas, they serve as ambulances, school transport, and a crucial support system for breadwinners," he said.
It should be noted that the boda-boda industry has recently faced increased scrutiny, with various groups advocating its reduction due to concerns about traffic congestion, frequent accidents, and impacts on the environmental.
Kamukama acknowledges the pollution challenges posed by the growing number of motorcycles in Kampala but highlighted Watu Uganda’s proactive efforts in introducing electric bikes.
Motorcycles emit significant amounts of air pollutants, including particulate matter, carbon monoxide, and nitrogen oxides, which are known to contribute to respiratory problems, heart disease, and other health issues, in addition to noise pollution and stress.
Additionally, the regular disposal of used motorcycle engine parts can contribute to environmental degradation. Kamukama says worldwide, the adoption of electric motorcycles is being encouraged as it can reduce air pollution and greenhouse gas emissions.
"We are fully aware of the environmental impact of motorcycle emissions, which is why we are committed to reducing that footprint. Our introduction of electric bikes is part of our broader strategy to promote sustainability and contribute positively to the environment," he says.
According to Kamukama, the adoption of electric bikes has been well-received, with users appreciating their affordability and lower maintenance costs compared to traditional fuel-powered motorcycles.
"Electric bikes are not only more environmentally friendly, but they also offer significant cost savings for the riders, making them a practical solution for the future of the industry," he adds.
Despite the regulatory hurdles the boda-boda industry faces, Kamukama sees these challenges as opportunities for innovation. Watu Uganda is currently working on solutions to improve rider safety and livelihoods, including training programs at their driving school dubbed Watu Shule and providing insurance for boda-boda riders.
"We believe that instead of focusing on reducing the presence of boda-boda’s, efforts should be directed towards making the industry better, safer, and more sustainable. This industry is not only integral to Uganda’s economy, but it also serves as an essential mode of transport for many, particularly in areas where other options are limited," he says.
In recent years, the Government has been positive about supporting the adoption of electric motorcycles to mitigate air pollution, noise pollution, and greenhouse gas emissions. Some of the measures being introduced in several African countries include offering tax incentives, providing government subsidies directly to consumers as well as investing in charging infrastructure, such as public charging stations.
Companies such as Gogo Electric have emerged and invested heavily in pioneer best-in-class lithium-ion batteries, with a vast network of swap stations across the country.
Watu Uganda is offering flexible financing options, such as low-interest loans or lease agreements, thus making the electric motorcycles more accessible to consumers with limited upfront capital.
The company has provided over one million loans across seven countries so far, positively impacting the lives of millions of people.
Optimism as national economy registers 6.6% growth
Uganda’s economy grew by 6.6% during the second quarter of 2024, signalling a robust recovery and expansion. High-frequency indicators of economic activity and positive business sentiments suggest a continuing upward trajectory.
The Composite Index of Economic Activity (CIEA) registered growth, rising to 166.63 in August 2024 from 166.03 in July. This upward movement indicates enhanced economic performance across various sectors. Furthermore, both the Purchasing Managers Index (PMI) and the Business Tendency Index (BTI) were recorded at 54.2 and 57.8 respectively in September 2024.
“These figures are above the threshold of 50, suggesting that the health of businesses and sentiments in the private sector are positive,” said Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury at the Finance Ministry.
Julius Mukunda, CEO of the Civil Society Budget Advocacy Group (CSBAG), emphasized the significance of these growth figures.
“While the growth rate is encouraging, it is crucial that the benefits reach ordinary Ugandans through job creation and improved public services,” Mukunda remarked. He urged the government to ensure that the economic growth translates into tangible improvements in living standards for all citizens.
The government’s strategic investments, particularly in the Accelerated Transformation and Modernization Strategy (ATMS), aim to bolster the economy ten-fold, according to Ggoobi, which he says anticipates economic growth between 6% and 6.5% for the current financial year, with even higher projections in subsequent years driven by ongoing initiatives under the ten-fold Growth Strategy.
Uganda’s merchandise trade deficit narrowed to USD314.1 million in August 2024, down from USD 342.8 million in the same month the previous year. This reduction can be attributed to a significant increase in export receipts that outweighed the rising import bill. Total exports in August 2024 reached USD 789.58 million, reflecting a substantial growth of 17.9% compared to USD 669.69 million in August 2023.
Coffee remains a cornerstone of Uganda’s export economy, with its export value surging by 82.2% from USD121.64 million in August 2023 to USD 221.63 million in August 2024. Such growth highlights the continued global demand for Ugandan coffee, further strengthening the agricultural sector.
Foreign Direct Investment (FDI) inflows for the fiscal year 2023/24 hit a record high of USD3,034.11 million, up from USD2,950.60 million in FY 2022/23. This increase is a testament to the growing investor confidence in Uganda, largely driven by activities in the oil and gas sector as the nation gears up for its first oil production in FY 2025/26.
Ggoobi emphasized the importance of this sector in attracting investment saying the preparations for oil production are crucial for economic expansion and job creation. Regarding inflation, Ggoobi reported that Uganda’s annual headline inflation remains subdued, declining to 3.0% for the year ending September 2024.
This stable inflation rate supports consumer purchasing power and fosters an environment conducive to investment.
The current growth trajectory has several implications for Uganda’s economy. It suggests enhanced business confidence, which can lead to increased private sector investment and consumer spending.
“This growth could mean more job opportunities and higher incomes for Ugandans,” Mukunda noted. Furthermore, the narrowing trade deficit indicates a healthier balance of payments, which is essential for long-term economic stability.
Uganda’s economic growth of 6.6% in the second quarter of 2024 underscores a positive outlook, backed by strategic government initiatives, increased exports, and rising foreign investment.
Ggoobi’s insights into these trends reflect a government poised to capitalize on opportunities for development and prosperity, with economists like Mukunda advocating for inclusive growth that benefits all Ugandans.
As Uganda joins the global community in celebrating World Standards Day this October, Minister of Trade, Industry and Cooperatives Francis Mwebesa is urging stakeholders across all sectors to adopt and implement relevant standards.
This initiative is not just a regulatory formality; it is a strategic move aimed at enhancing business growth and fostering a sustainable economy.
According to the Uganda National Bureau of Standards (UNBS), approximately 70% of Ugandan manufacturers have adopted various standards over the past five years. This adoption is reflected in enhanced product quality and increased market competitiveness.
This year’s theme for World Standards Day - “Shared Vision for a Better World” - resonates with Sustainable Development Goal 9 (SDG 9), which emphasizes the need for resilient infrastructure, sustainable industrialization, and innovation.
"Standards are the backbone of a thriving economy," Mwebesa remarked, highlighting their critical role in ensuring quality, safety, and efficiency across industries.
Studies show that the adoption of standards has contributed to a 15% increase in export volumes for Ugandan products, particularly in the food and agricultural sectors. This growth can be attributed to improved quality assurance and compliance with international standards, which enhance product acceptance in global markets.
Standards serve as essential guidelines that help businesses navigate complex market demands. By providing benchmarks for quality and safety, standards facilitate the growth of reliable and resilient infrastructure, thereby supporting economic development.
"The economic importance of standards is evident in their ability to open up markets for Ugandan products," explained Eng. James N. Kasigwa, Executive Director of the Uganda National Bureau of Standards (UNBS).
When Ugandan products meet national, regional, and international standards through rigorous testing, inspection, and certification, they gain access to global markets. This access is particularly vital for Micro, Small, and Medium Enterprises (MSMEs), which constitute a significant portion of Uganda's economy.
UNBS, under the Ministry of Trade, Industry and Cooperatives, has developed an impressive 4,862 standards to support various sectors, including:
Food, Agriculture, and Forestry - 1,133 standards; Chemicals and Consumer Products - 1,465 standards; Engineering and Construction - 1,488 standards, as well as Services and Business Management - 776 standards.
Officials said that this extensive framework underscores the government’s commitment to fostering an environment where businesses can thrive.
To ensure that MSMEs can comply with these standards, UNBS has introduced several initiatives aimed at lowering barriers to entry. These include:
Reducing certification fees to make it more accessible for smaller enterprises and acquiring international accreditation for testing laboratories, ensuring that test results are globally recognized.
"Standards will not just boost individual businesses but will also contribute to the overall economic resilience of Uganda," Mwebesa emphasized.
Consumers are urged to be vigilant, ensuring they demand quality products certified by UNBS. If issues arise or suspected counterfeit products are encountered, the public is encouraged to report these instances to UNBS via their toll-free line at 0800 133 133 or through WhatsApp at 0713 227 580.
The African Export-Import Bank (Afreximbank), a Pan-African multilateral trade finance institution that aims to promote and finance trade within Africa and between Africa and the rest of the world, is set to host its 2024 Trade Finance Seminar and Factoring Workshop in Windhoek, Namibia, from 5 - 8 November.
Gwen Mwaba, the Managing Director for Trade Finance & Correspondent Banking at Afreximbank, says that the event will bring together African bankers, financiers, legal practitioners, and other trade finance professionals to address key trends in trade finance and offer specialised training in innovative strategies designed to strengthen Africa’s trade ecosystem.
Micro, small, and medium-sized enterprises (MSMEs) are the backbone of Africa’s economy, contributing significantly to GDP and employment.
However, despite their crucial role, many MSMEs face a crippling challenge—limited access to trade finance. This issue has created a financing gap estimated at $81 billion across the continent, stifling growth and limiting opportunities for expansion.
According to experts, innovative financial solutions like factoring and supply chain finance (SCF) are emerging as effective tools to bridge this gap, offering new avenues for MSMEs to access much-needed capital.
Mwaba says traditional banks are often reluctant to lend to these small businesses, citing high risks, insufficient credit histories, and lack of collateral. As a result, she adds, MSMEs struggle to fulfill orders, maintain inventory, and scale operations, which in turn hampers broader economic development.
“This seminar aims to strengthen Africa’s trade finance landscape by fostering collaboration and unlocking new opportunities for growth,” Mwaba says, adding that this would drive national economic growth, boost both public and private sector revenues, and enable governments to execute critical development projects.
One of the main topics of the seminar will be addressing the estimated trade finance gap in Africa, which ranges between $90 billion and $120 billion annually. The departure of international banks has created a pressing need for local lenders to step in and meet the growing demand for trade finance solutions.
Afreximbank’s seminar aims to foster collaboration among stakeholders to explore strategies for closing this gap, ensuring that African businesses can access the resources they need to thrive in a competitive global market.
The seminar would spotlight factoring and SCF as alternative trade financing solutions that can unlock significant value for African MSMEs. Factoring allows businesses to sell their invoices at a discount to third-party institutions, providing immediate cash flow. This ensures liquidity for MSMEs without increasing their debt burden, enabling them to maintain operations and expand.
Drake Ssennoga, an economist, says the notion of factoring is based on the creditworthiness of a business’s customers rather than the business itself, making it particularly valuable for MSMEs that have limited credit histories.
Ssennoga also explains the rising appeal of supply chain finance (SCF) in Africa, saying SCF allows MSMEs to receive early payments by leveraging the stronger credit profiles of their larger buyers.
He says this creates a mutually beneficial arrangement where MSMEs maintain liquidity, while large corporations extend payment terms to better manage their cash flow. “For instance, a large agribusiness in Kampala can ensure that small-scale farmers receive early payments through SCF, enabling smooth operations despite extended payment terms,” Ssennoga notes.
Established in 1993, Afrexim Bank’s mission is to support the transformation of African trade by providing financial services that address the continent's trade finance needs.
The bank, whose headquarters are in Cairo, Egypt, facilitates letters of credit, guarantees, and other instruments that support international trade transactions, helping to reduce risks for African exporters and importers.
The Masaka Senior Resident Judge Lawrence Tweyanze has ruled that the government can proceed with the construction of East African Oil Pipeline (EACOP) before the affected landowners are compensated for their land.
The Government, through Attorney General, had petitioned Court after about 80 project-affected persons (PAPs) in Rakai, Kyotera, and Lwengo districts had dismissed a valuation report that had put the value of about 103 acres of their land at about UGX770 million (an average of about UGX7.5 million per acre), saying it was too little.
The EACOP is a multi-billion-dollar joint venture between Uganda and Tanzania, with international partners like TotalEnergies and CNOOC (China National Offshore Oil Corporation), whose objective is to evacuate billions of gallons of crude oil to the international market through the Tanzanian port of Tanga.
The 1,440km EACOP, which traverses ten districts in Uganda, would affect hundreds of communities and the land acquisition and compensation process has led to costly delays in some districts.
Resident Judge Tweyanze last week agreed with the Attorney General that the Government should compulsorily acquire the land for the project after depositing the UGX770 million with the Court.
The Attorney General argued in court that the Project Assessment Officers have since February been attempting to meet the aggrieved PAPs to resolve the disputes, but they have been shunning the meetings and deliberately declined to give way for the project to proceed, hence threatening its planned implementation schedule
Besides, the Attorney General also told the court that some of the PAPs have unresolved family disputes concerning the affected properties, as a result, the government is yet to find the right persons to receive the compensation.
He prayed that the project be allowed vacant possession of land in the demarcated route pending resolution of the disputes. However, the PAPs through their lawyer Peter Alinaitwe, contested the government’s applications on grounds that it deprived them of inherent rights to own property and receiving of fair compensation to forfeit the land for a public project.
They also claimed that the government hired manipulative evaluation contractors who eventually cheated them by allocating unfair compensation fees for their properties.
The Judge agreed with the government that some of the PAPs were untraceable to receive compensation, while those who claimed to be dissatisfied with the evaluation failed to convince the court in regard to the amount they wanted to be paid.
“The refusal to accept compensation, absence of legal representatives and inability to locate certain Respondents therefore, justify the depositing of the compensation sum in Court to as to legally discharge the Applicant's obligations while enabling the Government to take possession of the land and proceed with the project,” the judgment reads in part., adding that some of the respondents were okay with the assessed compensation awards.
However, despite granting eviction and demolition orders against the PAPs, the Court cautioned the government against endangering human life in the process of forcefully acquiring the land.
Watu Uganda, one of the country’s leading asset-financing companies, has been awarded the prestigious Client Protection Certification award.
The recognition by Microfinanza Rating (MFR), one of the world’s top microfinance information service providers worldwide, positions Watu Uganda as the third financial institution in Africa to achieve such an accolade, underscoring the company’s commitment to financial inclusion and responsible lending practices.
The recognition has coincided with Watu’s Customer Service Week celebrations, a time dedicated to honoring customer-centric service and engagement. Since the introduction of the Microfinance Institutional Rating (MIR) in 2012, MFR has aimed to integrate client protection into traditional financial analyses. By emphasizing social responsibility, the Italy-based MFR is paving the way for institutions to prioritize client welfare alongside profitability.
Christian Kamukama, Watu's Head of Commercial, told journalists at a press briefing that achieving the MFR Client Protection Certification signified their commitment to fair, transparent, and responsible lending.
“The certification process involved a comprehensive evaluation of Watu Uganda’s operations, highlighting the importance of transparency, fair product design, and effective complaint resolution mechanisms,” he said.
Since its inception in 2019, Watu Uganda has made significant strides in the boda boda industry, providing over 130,000 loans and thus positively impacting the lives of more than half a million people.
The Boda boda industry is a vital component of Uganda's transportation network, providing income opportunities and mobility for millions of people every day. Recent statistics indicate that approximately 1.5 million people are employed in this sector, contributing to 2% of Uganda’s GDP.
Moses Bukenya, a boda boda rider and beneficiary of Watu's services, told this publication that he is extremely happy with Watu’s services so far.
"Watu has been instrumental in helping us achieve financial inclusion and responsible lending practices. This support has uplifted our incomes and improved our livelihoods," he said.
However, according to Kamukama, the boda boda financing industry in Uganda still faces several challenges, which he said require urgent attention. These include lack of regulation, which has made borrowers vulnerable to exploitative lending practices, volatility in fuel prices which make it harder for the borrowers to pay back their loans, as well as limited financial literacy.
He noted that surveys had indicated that over 60% of boda boda operators have limited knowledge of financial products, leading to misinformed financial decisions. Kamukama highlighted the importance of collaboration among the key stakeholders to tackle these challenges effectively: “We must work hand-in-hand with the government to establish regulations that protect both borrowers and lenders. By creating a stable environment, we can enhance access to finance in the Boda boda industry,” he stated.
Watu Uganda’s journey toward achieving the MFR certification began in 2021 with a rigorous social rating assessment that reviewed the company's adherence to client protection principles.
The certification reflects the institution’s ongoing efforts to maintain ethical and transparent business operations, further strengthening its reputation as a leader in financial services.
As part of the Customer Service Week, Watu Uganda is hosting interactive activities to encourage open dialogue between staff and clients. These events offer existing and prospective clients the opportunity to learn more about Watu’s diverse financing options and the robust support systems available to assist them throughout their financial journey.
Additionally, the event provides a platform for journalists and stakeholders to explore how Watu Uganda is driving innovation in ethical and responsible financial service delivery across East Africa.
The Monetary Policy Committee (MPC) of the Bank of Uganda has announced a significant reduction in the Central Bank Rate (CBR), lowering it by 25 basis points to 9.75%.
This strategic move reflects an improved inflation outlook and aims to bolster economic growth while maintaining price stability.
Deputy Governor Michael Atingi-Ego emphasized the rationale behind this decision, stating, “Inflation remains subdued, in part reflecting the unwinding of global shocks, a stable shilling exchange rate, and prudent monetary policy.” This balancing act seeks to stimulate economic activity without igniting inflationary pressures.
The reduction from 10.25% a rate raised earlier in the year to combat rising inflation signals a shift in focus.
Atingi-Ego noted, “The CBR’s reduction reflects a decrease in inflation and the stability of the shilling against the dollar,” underscoring the central bank’s commitment to fostering a conducive environment for economic growth.
Recent data supports the MPC's decision. Over the twelve months leading to September 2024, annual headline and core inflation averaged 3.2%.
In September, both metrics showed further declines, with headline inflation at 3.0% and core inflation at 3.7%, down from 3.5% and 3.9% in August, respectively. This decline was largely driven by lower oil and food prices, particularly affecting transport services.
Atingi-Ego acknowledged that “the inflation outlook is susceptible to risks,” highlighting the necessity of careful monitoring in this dynamic economic environment. The Bank of Uganda projects that average core inflation will remain below the medium-term target of 5% over the next 12 months backed by a stable shilling and favourable global commodity prices.
Despite this optimistic outlook, several risks loom over the inflation landscape. On one hand, inflation could be lower than anticipated if previous policy measures dampen demand significantly or if global economic conditions worsen. Favourable harvests could also lead to lower food prices, further supporting the inflation outlook.
Conversely, geopolitical tensions could elevate energy prices, while extreme weather events might drive food prices higher than projected, highlighting the intricate nature of economic forecasting in an interconnected world.
The decision to lower the CBR is vital not just for stabilizing prices but also for invigorating the economy. Lower borrowing costs can increase consumer spending, which stimulates business investments and job creation. This interconnectedness underscores the importance of responsive monetary policy.
“Central banks must navigate a fine line between encouraging growth and controlling inflation,” Atingi-Ego remarked, encapsulating the challenges faced by monetary authorities.
As Uganda's economy continues to recover, the CBR adjustment signifies a proactive approach to fostering sustainable economic development.
Darius Mugabi, an economist at Makerere University Business School, views the BoU’s decision as pivotal for the nation’s economic policy. He notes that by fostering a stable inflation environment while encouraging growth, the central bank aims to support both consumers and businesses amid an uncertain global landscape.
“The balance between growth and stability remains a central focus for Uganda’s economic future,” he states.
BoU says inflation is expected to remain below target in the near term and the inherent uncertainty in the outlook that warrants a cautious monetary policy stance. This commitment reflects the Central bank's on-going effort to cautiously navigate the economic.
Commercial bank lending activities in Uganda have shown a robust increase, growing by 6.8% in the financial year ending June 2024, according to the Bank of Uganda.
According to the Central bank’s annual report for 2023/2024, total loans disbursed reached Shillings 22.6 trillion, up from Shillings 21 trillion the previous year. This growth rate not only surpasses the 5% increase recorded in the prior year but also indicates a positive trend in the banking sector amidst challenging economic conditions.
A key driver of this growth was a significant rise in net credit extensions, which amounted to UGX1.338 trillion for the year ending June 2024, compared to UGX650.1 billion in the previous year. Net credit extension, defined as the change in outstanding credit over a specific period, is a critical measure of lending activity that reflects banks’ willingness to extend credit.
Despite this encouraging trend, the growth remains below the long-term target of 13%, which is considered optimal for sustaining healthy industry performance. “This moderate growth partly reflects a measured response by financial institutions and borrowers in adapting to the tight financing conditions during the period,” the report notes.
While the increase in lending is a positive sign, financial experts warn that rising lending rates could have significant implications for the economy. The average lending rate currently stands at approximately 12.5%, up from around 11% in the previous financial year. This increase in borrowing costs could deter potential borrowers, particularly small and medium-sized enterprises (SMEs) that rely heavily on loans for operations.
Dr. Sarah Kiyimba, a senior economist at the Uganda National Chamber of Commerce and Industry, explains: “A 6.8% growth in lending is promising, but we must also consider the impact of higher interest rates. As borrowing becomes more expensive, businesses may delay or scale back investments, which can slow down economic growth.”
Moreover, the total number of loans extended by banks also saw a rise, reaching approximately 1.8 million loans issued in the past year, compared to 1.6 million the previous year. However, this growth could be undermined if higher borrowing costs lead to reduced demand for loans.
John Mwesigwa, a financial consultant, emphasizes the challenges faced by SMEs in this environment.
“Many SMEs operate on tight margins, and if the cost of borrowing increases too much, they may struggle to stay afloat. This could lead to job losses and decreased economic activity,” he warns.
Despite these concerns, some experts believe that a gradual increase in lending activity could also reflect a strengthening of the economy.
“When banks are confident in the repayment capabilities of borrowers, they are more inclined to extend credit, which can stimulate economic growth,” Dr. Kiyimba notes.
However, the importance of monitoring the lending environment cannot be overstated. Policymakers must ensure that interest rates remain within a manageable range to foster sustainable growth.
“The goal should be to encourage borrowing while maintaining financial stability. Striking this balance is crucial for the long-term health of the economy,” says Mwesigwa.
The 6.8% growth in bank lending activities highlights a cautious optimism within Uganda’s banking sector, yet it also raises important questions about the impact of rising lending rates on businesses and overall economic growth.
As stakeholders navigate these challenges, maintaining a focus on balanced growth will be essential for fostering a resilient economic landscape. The collaboration among financial institutions, businesses, and policymakers would be key to ensuring that the benefits of increased lending translate into meaningful economic progress for all Ugandans, according to Mwesigwa.
Pal Mai Deng, the South Sudanese minister of Water Resources and Irrigation, has submitted a memo to the Council of Ministers, aimed at implementing the Nyimur multi-purpose water and resource development project, a joint trans-boundary initiative aimed at providing water for irrigation and a power dam to serve both countries.
Press reports in South Sudan on Friday indicated that the project is to be set up on the Nyimur/Limur River, which is shared between Lamwo District and South Sudan.
It includes irrigation schemes and provisions for water supply for both human consumption and livestock as well as a 350 kW hydroelectric dam to supply power to hundreds of households in the project area.
The total cost of the project is estimated at $96 million, according to the Sudans Post, a South Sudanese publication.
The publication quoted Deputy Information Minister Dr. Jacob Maiju Korok as saying that the Council of Ministers advised the Irrigation Ministry to adhere to specific guidelines for the project, including consultations with key stakeholders and local communities.
Uganda’s Ministry of Water and Environment could not be reached for a comment.
The River Limur is one of the tributaries in the Achwa River basin, which covers 15 districts in northeastern Uganda - flowing into South Sudan to join the White Nile, enroute to the Mediterranean Sea.
Just over ten years ago, the two countries collaborated on a joint feasibility study for the multi-purpose water resources development project aimed at improving water, food and energy security and contributing towards improved livelihoods without compromising the environment in the shared river basin.
The core scheme of the project consists of a dam and a reservoir on Limur River, five irrigated areas of approximately 5,000 hectares, plus a mini hydropower plant with a capacity of 350 kW.
The ultimate goal of the project is to sustainably improve socio-economic development in both countries through water resources development, with the overall objective of reducing poverty in the war-ravaged region.
When implemented, the project is expected to greatly improve on the availability of water resources, food security, water quality as well as regional security.
The project was supposed to start earlier but it has reportedly been delayed by discussions over compensation for project-affected communities in both countries.
The government has introduced stringent regulations that prospective Ugandan exporters must follow if their agricultural products are to be accepted in the lucrative Chinese market.
Frank K. Tumwebaze, the Agriculture, Animal Industry and Fisheries minister, told journalists at a media briefing on October 3 that exporters must be registered by both his Ministry and the Chinese government under a new protocol that the two entities signed last month.
To facilitate the entry of Ugandan products into China, the government has introduced three key export procedures.
First, all prospective export companies must apply and register with the General Administration of Customs of the People’s Republic of China (GACC).
Secondly, intending exporters must formally express their interest to export to China in writing to the Permanent Secretary of MAAIF. The ministry will conduct a pre-audit on the export compliance status of the companies and subsequently recommend them to GACC for registration.
Additionally, the government is setting up a dedicated task unit comprising technical officers within MAAIF whose role will be to expedite the export registration process and ensure compliance with GACC regulations.
Tumwebaze said adherence to these procedures is essential for Ugandan traders seeking to tap into the expansive Chinese market.
“The goal is not only to increase our exports but also to ensure that we do so responsibly and sustainably,” Tumwebaze stated.
By following the outlined protocols, Uganda aims to enhance its trade balance with China while ensuring the safety and quality of its agricultural exports.
According to recent figures, Uganda's trade relationship with China has shown significant potential. In 2022, Uganda exported approximately 1.1 trillion UGX (about $294 million) worth of goods to China, while imports from China totalled around UGX5.2 trillion (approximately $1.4 billion), resulting in a trade deficit of about UGX4.1 trillion (around $1.1 billion).
Specifically, Uganda's fish exports to China have increased by 15% over the past year, reaching around UGX185 billion, while dried chilies are projected to have a market potential of approximately UGX370 billion (about $100 million) in China if all requirements are met.
During the Beijing Summit of the Forum on China-Africa Cooperation last month, the Vice President of Uganda, H.E. Maj. (Rtd) Jessica Alupo Epel, witnessed the signing of two pivotal protocols on inspection and quarantine and sanitary requirements for the export of dried peppers and wild aquatic products to China, paving the way for Ugandans two products, particularly fish, to China.
Tumwebaze said while the Chinese market is yearning for products such as Nile perch fillets, headless and gutted Nile perch, fish maw, fish skins, fish scales, and silver fish is enormous, many of these products are not being exported through official channels, which is a concern for the Chinese government.
“The signing of this protocol is crucial to ensure that all wild aquatic products destined for China are safe for human consumption and approved by Chinese authorities,” he said.
He added that with the combined efforts of the Government and the private sector including producers, processors, and exporters, Uganda is well-positioned to meet the demands of the Chinese market while upholding the highest standards of food safety and quality.
“When all actors in the agricultural value chain become sensitive to market requirements at various stages, they produce better quality and, therefore, more competitive products,” he said.
Somdev Sen, the MTN Uganda Chief Marketing Officer, has been transferred to MTN Rwanda where he will take on a new role as Chief Digital and Commercial Officer, effective October 14.
During his seven years of service, Sen has been a transformative leader at MTN Uganda, driving significant growth through customer engagement initiatives, data-driven strategic insights, and key marketing campaigns.
His efforts have resulted in remarkable business achievements, including doubling MTN Uganda's customer base in the last six years.
Sylvia Mulinge, the MTN Uganda Chief Executive Officer, in a statement said: “Somdev’s contributions have driven our growth and inspired our team. His passion and dedication have left a lasting impact on MTN Uganda. As he moves on to new opportunities, we are proud of all he has accomplished and confident he will continue to achieve great things. We wish him every success in his next chapter.”
During his tenure in Uganda, Sen served in three distinct leadership roles namely; General Manager Customer Value Management, General Manager Business Intelligence and lastly Chief Marketing Officer.
He will be remembered for leading the execution of some of the most iconic MTN Marketing campaigns such as Uganda is Home, MTN Senkyu, MoMo Nyabo and Wesotinge (Osmosis) as well as the on-going MTN brand thematic campaign; ‘Together we’re unstoppable,’ among others.
“I am extremely honored to have served MTN Uganda in three distinct roles. I am grateful for the amazing team at MTN and the wonderful people of Uganda whom I have had the great pleasure of working with. As I move on to my new role, I am confident that you shall keep being unstoppable,” said Sen.
In Rwanda, Sen joins a company that is not only a market leader but also on the cutting-edge of digital technology.
In the six-month period ended June 2024, MTN Rwanda delivered strong mobile, enterprise and MoMo subscriber growth demonstrating the continued demand for its services in the market. Mobile subscribers grew by 7.5% year-over-year (YoY), with a substantial addition of 527,000 subscribers, bringing the total subscriber base to 7.5 million, in a country with a population of about 13 million.
Additionally, active mobile money (MoMo) subscribers sustained a growth of 15.0%, reaching 5.1 million.
MTN Rwanda recently launched the first ever paper-based biodegradable SIM cards, showcasing the company’s progress in climate-smart technological advancement.
The East African Development Bank's (EADB), the region’s premier development financial institution, has received positive credit results from a review of its credit ratings, raising hopes that borrowers would continue to borrow at more favourable interest rates.
This follows Moody's Ratings announcement of the completion of a periodic review of the region’s leading DFI.
A September 27 statement from Moody’s Ratings stated that the review was conducted through a rating committee held on September 20, 2024.
“The EADB’s ratings, including its Baa3 long-term issuer rating, reflects a strong capital position and an improved level of nonperforming assets (NPAs), offset by low development asset credit quality. Its liquidity and funding profile benefits from robust liquidity levels but is marked by a less diverse funding structure than many rating peers,” the statement reads in part.
“We assess member support to be low, reflecting a large cushion of callable capital but also the limited ability of shareholders to provide support in case of need given the low ratings of the EADB's four main shareholders – Kenya (Caa1 negative), Rwanda (B2 stable), Tanzania (B1 stable), and Uganda (B3 stable).”
According to Moody’s, obligations rated ‘Baa’ are judged to be medium-grade and subject to moderate credit risk, while obligations rated ‘B’ are considered speculative and are subject to high credit risk and those rated ‘Caa’ are judged to be speculative of poor standing and are subject to very high credit risk.
Last week, the EADB announced a fund of $15 million (about UGX68 billion) that is to be released to three Ugandan banks for onward lending to grassroot small and medium enterprises at an affordable rate of less than 13% compared to the market rate of more than 20%.
Vivienne Yeda, the EADB Director General, on September 27 signed partnership documents in Kampala Uganda with Centenary Bank, Opportunity Bank and Housing Finance Bank for the financing.
She said this new fund aims to reach over 1,500 SMEs across the East African country, with a special focus on entities operating in the agricultural sector and agri-business.
Chief guest Ramadhan Ggoobi, the Permanent Secretary in Uganda’s Ministry of Finance, Planning and Economic Development and also Secretary to the Treasury, saluted EADB for the initiative, saying enabling SMEs to thrive brings numerous benefits.
The three new partner banks now bring the total number of EADB’s local partner financial institutions in Uganda to five, in addition to FINCA and Finance Trust Bank, which came on board more than five years ago.
When a DFI has a positive credit rating, it becomes easier for it to attract capital at lower interest rates, which eventually cascades down to entities that borrow from it.
Moody’s said the credit profile of EADB is supported by its "baa1" capital adequacy, which balances a strong capital position and the low level of NPAs against relatively weak asset credit quality, while the Bank's "baa1" liquidity and funding score balances ample liquid resources with a more limited quality of funding, with the main sources of financing concentrated in credit lines from multilateral development banks (MDBs) and other financial institutions.
“EADB's leverage ratio under our definition fell to 57% in 2023, one of the lowest among the MDBs that we rate. The steady decline in the leverage ratio has been driven by cautious growth in development assets in recent years,” the statement said, adding that the bank posted net profit of $13 million in 2023, up from $6.6 million in 2022.
The NPA ratio stood at 0.8% in 2023, consisting of a single loan.
In May, the EADB was awarded by the Association of African Development Finance Institutions (AADFI) in the category of Prudential Standards, Guidelines, and Rating System (PSGRS), after scoring highly on the Compliance and Rating index.
The long-awaited 600MW Karuma Hydropower Dam has finally come online, raising hopes for a more industrialised and prosperous economy.
The September 26 commissioning, presided over by President Yoweri Kaguta Museveni, marks a pivotal moment in Uganda's energy landscape, with far-reaching implications for local communities and business growth.
Located in Karuma Town Council, Kiryandongo District, the hydropower plant is supported by an extensive transmission network that includes a 284-kilometer line to Kawanda in Kampala, a 55-kilometer line to Olwiyo in Nwoya, and a 75-kilometer line to Lira City.
This infrastructure is designed to efficiently distribute an estimated 1,200 GWh annually, thus enhancing access to reliable power for millions of businesses and households.
Over the decades, Uganda has faced challenges with electricity access, with just 40% of the population currently having access to electricity, compared to Kenya’s 70% and Tanzania’s 60%.
Indeed, Ruth Nankabirwa, the Minister of Energy and Mineral Development, described Karuma’s coming online as “a major milestone” in Uganda’s energy strategy, which she said would significantly enhance the country’s power generation capacity and support sustainable development.
Following the construction of smaller dams in various parts of Uganda, Uganda’s total electricity generation capacity now stands at 2,045.5 MW, while the demand for electricity has surged from just 257 MW in 2004 to nearly 1,000 MW today, reflecting a growing economy eager for more energy.
Karuma now joins the newer dams including the 250MW Bujagali, the 183MW Isimba Hydropower Station, Nyagak (3.5MW), Bugoye (13 MW), Kikagati (14MW), among others.
Permanent Secretary Irene Bateebe said with Uganda's ambitious energy goals, including achieving universal access to electricity by 2030 and generating 52,000 MW by 2040, projects such as Karuma are critical to achieving Sustainable Development Goal (SDG) 7 - ensuring access to affordable, reliable, and sustainable energy.
Indeed, Karuma Dam stands as a testament to Uganda's commitment to the energy transition agenda, with the potential to empower local communities and spur business innovation.
As President Museveni remarked, the Karuma Hydropower Project is the latest and most ambitious step in Uganda's ongoing energy evolution. With the promise of enhanced energy access, local communities are poised to experience significant business growth, paving the way for a prosperous future for all.
Development planners and policy implementors are keen on raising access to electricity as it can bring a wide range of economic benefits, which include increased industrial productivity, job creation, enhanced social services such as health and education, opportunities, boosting entrepreneurship, among many others.
However, if or not the new dam would lead to a reduction in the price of electricity for citizens and investors is what remains to be seen.
Uganda experienced a notable increase in inflation in September 2024, as headline inflation rate soared by 0.2%, consistent with the previous month.
According to the Consumer Price Index released by the Uganda Bureau of Statistics (UBOS), charcoal and matooke prices emerged as the primary contributors to this inflationary trend, rising from 1.2% to 35.2%, while charcoal prices surged from 0.4% to 5.7%.
This significant increase underscores the impact of supply challenges on consumer prices. Ediger Niyimpa, the principal statistician at UBOS, attributed the dramatic rise in matooke prices to seasonal droughts that severely impacted production.
These weather-related challenges have not only diminished supply but have also strained the market, leading to significant price hikes.
Additionally, the increase in charcoal prices has been linked to a recent ban imposed by President Museveni on charcoal burning and trade in Northern and North-Eastern Uganda. This policy has created supply shortages, further driving up prices.
Tushabe Kiiza, a small-scale trader dealing in matooke and charcoal at Froebel Ntinda, a suburb of Kampala, echoed Niyimpa's sentiments. He explained that the combined effects of reduced supply due to drought and regulatory restrictions on the commodities have made it increasingly difficult for traders and consumers alike.
"We're seeing prices climb higher every day," Kiiza remarked, emphasizing the burden the high prices place on ordinary Ugandans.
Godfrey Magoma, a principal statistician at UBOS, advised Ugandans to explore alternative food options to alleviate the financial strain.
"It's crucial for families to find other foodstuffs that can satisfy their needs without breaking the bank," he suggested.
This advice comes as many households struggle to keep pace with rising prices, particularly for staple items like matooke and charcoal, which are essential in many Ugandan kitchens.
On an annual basis, UBOS reported that the headline inflation rate for the 12 months leading to September 2024 stood at 3.0%, a slight decrease from the 3.5% recorded for the year ending in August 2024.
This decline is partially attributed to a lower annual core inflation rate of 3.7% compared to 3.9% in the previous year. Niyimpa noted that while commodity prices are rising, the overall speed of inflation is slowing down, which he views as a positive indicator for consumption and policy stability.
Interestingly, not all prices have followed the upward trend. Data revealed that the prices of petrol and diesel decreased by 2.2%, a welcome relief after the 6.7% increase noted in the year ending August.
This drop in fuel prices could provide some respite to consumers and businesses facing higher costs elsewhere.
The situation remains complex, with the interplay of environmental factors and government policies significantly influencing market dynamics.
The ongoing adjustments in the market reflect broader trends in inflation and commodity prices, prompting consumers and policymakers alike to remain vigilant and responsive to shifting economic landscapes.
President Yoweri Kaguta Museveni has urged communities surrounding Kapeeka Industrial Park to take full advantage of the opportunities it offers in order to market their products and boost their household incomes.
The President made the remarks while officiating the opening of a trade fair at Namunkekera Agro Processing Limited in Kapeeka, Nakaseke District, recently.
Located within the Kapeeka Industrial Park, Namunkekera Agro Processing Ltd has multiple factories focused on different aspects of agricultural processing.
The Park places a strong emphasis on agro-processing, leveraging the area's agricultural base to promote the transformation of raw agricultural products into finished goods.
Officials told thousands of people who thronged the park that it is serving as a hub for manufacturing and processing industries, which have led to a boost in the local and national economy by creating jobs and fostering business development.
Attracting both local and foreign investment, it has encouraged companies to set up operations in Uganda and thus contributing to economic diversification.
With the initiative of Presidential Advisor Gen. Salim Saleh, the establishment of the industrial park has promoted infrastructure improvements in the region, including roads, utilities, and services that benefit surrounding communities.
Given the agricultural base of the region, Kapeeka Industrial Park facilitated the processing of local agricultural products, adding value and improving food security and exports to regional markets, contributing to foreign exchange earnings and enhancing trade relations.
There are also many opportunities for skill development and training for the local workforce, helping to raise the overall skill level in the community.
President Museveni saluted Gen. Salim Saleh for his visionary foresight in securing land for investment, which led to the establishment of the industrial park, adding that it has played a crucial role in supporting Uganda's industrialization and economic development goals.
While other parks may focus on specific industries, Kapeeka hosts a range of enterprises across different sectors, providing a more diverse industrial ecosystem.
Kapeeka Industrial Park hosts several enterprises across various sectors, including agro-processing, manufacturing, and logistics.
Kapeeka Industrial Park often emphasizes collaboration with local farmers and communities, promoting sustainable practices and supporting local economies.
He also thanked the investors who responded positively to his call to invest in Uganda, recognizing their significant role in the country’s economic growth. During the event, farmers requested financial support for their SACCO amounting to UGX4.4 billion, to increase production capacity.
Vice President Jessica Alupo commended Kapeeka Industrial Park for supporting Uganda’s import substitution efforts and for creating trade opportunities. She acknowledged the investors’ contribution to economic transformation and also praised Gen. Salim Saleh for his patriotic spirit in executing the President’s vision for the industrial park.
Hon. Evelyn Anite, the Minister of State for Investment and Privatization, said Kapeeka Industrial Park currently employs over 15,000 people, mainly young people from the community.
Speaking at the commissioning of Royal Milk factory at Nalukolongo Industrial Park in Kampala recently, the President urged the proprietors to ensure value addition into powder milk for the lucrative export market.
“Liquid milk is heavy and costly for exportation, but if you take time to process it into powdered milk, it becomes lighter and less expensive. Shifting focus from liquid milk to processed products for export is crucial. This is something you must take seriously,” he said.
Founded in 1995 by Hajji Buruhan Kigoye, Royal Milk Enterprises started as a small company in Masindi District. Over the years, the company has evolved, and collects 200,000 litres of milk per day from 25 collection centres across the country.
“I want to salute the old man Mzee Kigoye for listening to our message. The problem of Africa is not poverty; it is a conceptual issue. We need to understand where prosperity comes from,” the President said.
President Museveni acknowledged the country’s current milk production of five billion litres annually and emphasised the need to explore venturing further into the international market.
A large-scale dairy farmer himself, the President also urged the investor to transition to long-life products like Ultra Heat Treatment (UHT) milk from the pasteurised milk currently produced by the factory to enhance market outreach and reduce transport costs.
Furthermore, President Museveni expressed his commitment to supporting the milk industry through government funding, urging local entrepreneurs to innovate and explore new markets.
H.E. Jan Sadek, the Ambassador of the European Union (EU) to Uganda, highlighted the significance of the project in realising President Museveni’s vision for Uganda’s industrial transformation.
“Royal Milk is a homegrown Ugandan company making strides in value addition, transforming milk into high-quality products. This is the kind of enterprise that drives real growth,” he added.
Sadek also expressed pride in the European Union’s relationship with Royal Milk.
“Ten years ago, we participated in creating the Yield Fund, Uganda’s first impact investment fund dedicated to small and medium agro businesses. This £20 million fund has been a game changer, attracting other investors and providing vital capital to companies like Royal Milk, enabling them to expand, innovate, and support smallholders. This is something I am very proud of.”
Royal Milk is one of about 30 registered dairy processing facilities in the country, with the sector presenting a promising investment landscape, given the numerous opportunities for economic growth and development.
Currently, Royal Milk, which employs more than 400 Ugandans directly, produces pasteurized milk, yoghurt, butter and cream.
The investment is impacting over 100,000 farmers, collecting an average of 250, 000 liters of raw milk per day from cattle farmers.
With support from the EU, they have introduced innovative farming practices and modern technology and scaled up their operations to reach more farmers across the country.
With IFAD support, farmers are also connected to broader agricultural networks, opening up new opportunities for growth and development.
The East African Development Bank (EADB), the region’s leading development financial institution, has launched a new $15 million (about UGX68 billion) fund to support the growth of 1,500 rural-based Small and Medium Enterprises (SMEs) in Uganda.
The money is to be channeled through three commercial banks – Centenary Bank, Housing Finance Bank, and Opportunity Bank.
Speaking as chief guest at the signing ceremony in Kampala on September 27, Ramadhan Ggoobi, the Permanent Secretary in the Ministry of Finance, Planning and Economic Development and also Secretary to the Treasury, saluted EADB for the initiative, saying enabling SMEs to thrive has numerous benefits.
“Bridging the financial gap for SMEs requires collective action. We must continue working hand-in-hand with development partners, financial institutions, and the private sector to create a business environment where SMEs can truly thrive,” he said.
Development Financial Institutions (DFIs) are specialized entities designed to promote economic development by providing funding to initiatives that may not be attractive to local commercial banks. They tend to take on higher risks than commercial banks, enabling investments in sectors or regions that may be deemed too risky for private investors.
With financial support from KfW, a German development bank, EADB’s main objective is to stimulate economic growth, create jobs, and reduce poverty by supporting large-scale infrastructure projects, grassroot SMEs, and social enterprises.
Vivienne Yeda, the EADB Director General, said the SME sector deserves their support because it plays a crucial role in the economic growth of Uganda - contributing to 70% of GDP and creating close to 90% of all jobs. She said this new fund aims to reach over 1,500 SMEs across the country, with a special focus on those operating in the agricultural sector and agri-business.
Yeda said EADB’s partnership with Ugandan financial institutions not only provides loan facilities to the ‘last mile’ business enterprises but also offers technical support to ensure that these businesses remain innovative and progressive.
“I am inspired by the catalytic approach we have adopted to support SMEs through improved access to finance and technical assistance to financial institutions here in Uganda,” she said.
The three new partner banks now bring the total number of EADB’s local partner financial institutions in Uganda to five, in addition to FINCA and Finance Trust Bank, which came on board more than five years ago.
Yeda saluted the partners in Uganda over the last five years, saying the successful collaboration had been pivotal to structuring a framework that has been rolled out to the rest of the region especially in Rwanda and Kenya, and in Tanzania soon.
Speaking at the same event, Ann Nakawunde, the Finance Trust Bank managing director, noted that for over ten years of their collaboration with the EADB, they had received over UGX20 billion, which they had disbursed to more than 6,000 customers and the results were “exceptional.”
Robert Kakande, the FINCA managing director, said their five-year partnership with EADB had seen their agricultural lending rise to 40%, with over UGX60 billion disbursed so far to thousands of SACCOs at the grass roots.
Fabian Kasi, the Centenary Bank managing director, said with the new financing, they are set transform the lives of thousands of small business owners especially those operating through SACCOs at the grass roots.
As part of the partnership, the local financial institutions are also required to offer financial literacy and business development advisory services to help the businesses improve their operations, governance, and sustainability practices.
During the recent presentation of the Budget Strategy for the Financial Year 2025/2026, officials from the Ministry of Finance, Planning and Economic Development warned that dwindling external financing down by approximately 30% from UGX 4.4 trillion (about $1.2 billion) in 2022 to an estimated UGX3.1 trillion (about $840 million) in 2024, could derail the government’s ability to meet essential expenditures on time.
Development analysts say this shift poses significant risks to the nation’s economic stability and growth prospects, raising urgent questions about how to adapt to an increasingly challenging financial landscape.
In 2014 - exactly ten years ago - Uganda received about UGX6.1 trillion (approximately $1.7 billion) in donor support, accounting for roughly 45% of the national budget, a significant amount for critical projects and social services.
Amos Lugoloobi, the State Minister for Planning, recently attributed the sharp decline to global factors such as the ongoing conflicts in Ukraine and Palestine that have forced major donors to redirect their attention and resources to the war effort. “They are sponsoring the wars in Ukraine, Israel, and Palestine. Their priorities have since shifted,” he stated, while also suggesting that the development partners are expecting Uganda to wean itself off donor aid by now.
Lugoloobi added; “As you grow beyond a middle-income level, donor countries perceive you as capable of sustaining your own growth, which leads them to prioritize assistance for less developed nations.”
This shift in funding dynamics raises alarms about Uganda's reliance on external aid for critical projects, infrastructure development, and social services. In previous years, approximately 40% of Uganda’s annual budget has been supported by donor funding, amounting to an average of UGX7 trillion per year. Without this level of support amid declining tax revenue growth, the country risks stagnating in its growth and failing to tackle pressing issues such as poverty, healthcare, and education.
Christine Byiringiro, the Programme Officer at Uganda Debt Network, a local NGO, stresses the need for the government to re-evaluate its spending priorities in response to the drying aid taps.
“It’s high time the government reduced spending on luxuries and plan accordingly,” she asserts, echoing public sentiment about the need for austerity measures in the face of declining resources.
Other Civil Society Organizations (CSOs) players have also voiced their concerns regarding the need to slash budget allocations that facilitate corruption and unnecessary expenditures. During a recent post-budget dialogue in Kampala, Dr. Arthur Beinomugisha, Executive Director of Advocates Coalition for Development and Environment (ACODE), described corruption as a severe threat to both the economy and national security. “Corruption undermines public trust and diverts resources from essential services, hindering economic growth and development,” he warned, noting that over UGX740 billion (about $200 million) is lost annually due to corrupt practices.
Matia Kasaija, the Minister of Finance, Planning and Economic Development, reiterated the need for a strategic response to the decline in external financing, emphasizing the importance of the Domestic Revenue Mobilization Strategy (DRMS).
“We shall repurpose the resources in the current budget and improve allocative efficiency to focus on prioritized sectors of the economy,” he noted. This commitment to enhancing domestic revenue collection reflects a critical pivot in Uganda’s fiscal policy, particularly in combating tax evasion and smuggling, which costs the economy an estimated UGX 4 trillion (about $1.1 billion) each year.
In light of the glaring funding deficit, the government plans to diversify its public financing options through the Public Investment Financing Strategy (PIFS), which will explore concessional and commercial loans, Islamic finance, and climate finance.
“By expanding our financing toolkit, we aim to mitigate the adverse effects of declining donor support and secure necessary investments,” Kasaija added.
However, the path forward is still fraught with challenges. The success of these strategies hinges on the government’s ability to implement meaningful reforms, enhance transparency, and effectively combat corruption. Without addressing these systemic issues, the reliance on domestic resources may not lead to the desired economic outcomes.
Byiringiro notes that the decline in donor support should raise significant concerns for Uganda’s economic future and the government has to adjust accordingly.
“As global priorities shift and funding diminishes, the government must take decisive action to strengthen domestic revenue mechanisms and combat corruption,” she says. “By focusing on prudent financial management and strategic investment in essential sectors, Uganda can navigate the challenges posed by decreasing donor support and work towards a more sustainable and prosperous future for its citizens.”
Uganda’s coffee industry soared to new heights in August 2024, earning UGX820 billion from exports, a testament to the country’s increasing prominence in the global coffee market.
According to the Uganda Coffee Development Authority (UCDA), Uganda exported 837,915 bags of coffee worth US$ 221.63 million (about UGX 831 billion), marking the highest number of bags and earnings recorded in a single month.
Emanuel Iyamulyeme, the UCDA Executive Director, emphasized the significance of this milestone: “This is the highest number of bags to be exported in a single month, and it’s also the highest earnings recorded. If exporters continue to release stocks, I project these figures will continue increasing,” he said.
The August export volume also surpassed the previous year’s figures, reinforcing Uganda’s position as a leading coffee exporter in Africa.
However, for exporters like Harbert Magyezi, these impressive figures come alongside substantial obstacles. As one of Uganda’s prominent coffee exporters, Magyezi is navigating fluctuating global coffee prices, high production costs, and limited access to financing, while contributing to the country's remarkable growth in coffee exports.
The coffee market is notoriously unstable, with prices shifting due to unpredictable factors such as weather changes, economic conditions, and market demand. Magyezi points out that this volatility makes long-term planning a challenge.
“Global prices can change overnight, making it difficult for us to guarantee stable incomes,” he explains. The unpredictability of international coffee prices forces exporters to tread carefully, balancing the risks of holding onto stock or releasing it quickly to take advantage of favorable prices.
Magyezi explains that the prices of fertilizers, labor, and transportation are climbing, squeezing profit margins for both farmers and exporters. “When production costs increase, our profits shrink. We’ve tried to support farmers by sourcing affordable inputs, but the costs are still prohibitive,” Magyezi notes.
Like many other exporters, Magyezi struggles with securing affordable financing. The agriculture sector, especially coffee, is viewed as risky by financial institutions, leaving exporters with limited options for credit. “We need affordable loans to grow our businesses, but many banks are reluctant to lend to us. Without proper financing, expanding operations to meet growing demand becomes extremely difficult,” Magyezi explains.
This financing gap stifles growth potential for many exporters, even as the global demand for Ugandan coffee continues to rise.
Despite these challenges, Uganda’s coffee sector is showing resilience and growth. From September 2023 to August 2024, Uganda exported a total of about 6.4 million bags, generating US$ 1.35 billion in revenue. This marked a 5.25% increase in volume and an impressive 46.96% rise in value compared to the previous year.
Iyamulyeme attributes this growth to higher global demand for quality coffee, improved market access, and exporters like Magyezi continuing to contribute to the export volumes.
The UCDA report of August 2024 indicates that Europe remains the top destination for Uganda’s coffee, accounting for 73% of exports in August 2024, while the African market share slightly decreased to 12%.
This puts the ongoing establishment of a coffee traceability system as per the European Union Deforestation-free Regulations (EUDR) into sharp focus in order to protect Uganda’s coffee exports to the European Union, ahead of the the January 1, 2025 deadline.
Aimed at protecting forests in coffee-growing countries, the system must register all the coffee value chain players including nursery bed operators, farmers, processors and exporters and farmers to ensure that Uganda is compliant with the EU regulations or risk a ban on Ugandan coffee.
Stakeholders are desperate to ensure compliance as a decline in coffee exports would severely affect the country's economy.
MTN Uganda, through its corporate social responsibility arm, MTN Foundation, has today enhanced the digital learning environment at St. Catherine Girls Secondary School in Kazo District, with the donation of a fully furnished computer laboratory valued at UGX65 million.
Part of MTN’s Digital Access Program, the support includes ten computers, a year of free internet access, and backup power systems, further reinforcing the company’s commitment to fostering digital inclusion and empowering young women across the country.
Andrew Tusubira, the Regional Commercial Head – West at MTN Uganda, emphasized that this initiative aligns with MTN Uganda’s Ambition 2025 Strategy, which is dedicated to advancing digital transformation and ensuring that all Ugandans can enjoy the benefits of a connected life, regardless of their economic or social background.
“We believe that this computer lab will serve as a transformative space for students, providing them with the tools needed to develop essential digital skills and engage with the digital economy,” Tusubira stated.
He also highlighted that this contribution reflects MTN Uganda’s broader commitment to supporting the Ugandan government in achieving the goals of Vision 2040, National Development Plan III, and the United Nations Sustainable Development Goals, particularly in fostering inclusiveness, equity, and economic empowerment.
Sr. Assumpta Mayar, the head teacher at St. Catherine Girls Secondary School, expressed deep gratitude for MTN’s support. "We are incredibly grateful to MTN Uganda for this generous contribution. The new computer lab is not just a gift to our school but an investment in the future of our students. This will open up new opportunities for our girls to learn, grow, and compete in the digital world," she said.
St. Catherine Girls Secondary School, with over 500 students, is the second institution to benefit from this year’s Digital Access Program, following the successful partnership with the Tunaweza Foundation.
According to the World Bank, Uganda grapples with high rates of unemployment and underemployment, particularly among young women. The unemployment rate for women stands at 16.3%, higher than the national average of 11.7%.
“These figures point to a critical issue: many young women face barriers such as limited access to quality education and digital skills, which can hinder their ability to fully participate in the digital economy and realize their full potential,” Tusubira noted.
Other schools set to benefit from this initiative include St. Joseph’s Nyenga Seminary in Buikwe District, Revival Girls in Mbarara District, and St. John’s Secondary School in Sheema District.
MTN Uganda has long been at the forefront of supporting ICT in education, having established over 48 ICT labs in educational institutions nationwide.
With a focus on innovative technology, MTN Uganda is aiming at uplifting communities towards independence in the bold new digital world. The Foundation invests resources for social redress, thus economic empowerment, education, health, and humanitarian response. The Foundation implements projects that are highly enabled by ICT solutions.
KK Security has officially transitioned to GardaWorld Security in Uganda, marking a significant shift that promises to enhance employment opportunities throughout the region.
Speaking at a colourful launch event in Kampala, officials said the rebranding aligns Uganda with a global leader in security services while underscoring a commitment to improving employee welfare, a crucial factor in combating crime within the private security sector.
The rebranding celebration, at which CP Eddy Sserunjogi, the Uganda Police Force Commissioner for Private Security and Firearms, was chief guest, brought together hundreds of clients, partners, and employees to witness the unveiling of this new chapter.
For over 29 years, KK Security has been a trusted name in Uganda’s security landscape. Following its acquisition by GardaWorld in 2016, the integration into a global framework has facilitated a seamless transition toward enhanced service delivery.
CP Sserunjogi said the company’s performance over time was “impressive” and described the rebranding as a “significant milestone" in the security services sector in Uganda.
“As the regulator of private security firms, I am particularly impressed by Gardaworld’s commitment to adhering to the highest standards of security and operational excellence. Their dedication to integrating technology and grassroots training programs for staff and providing tailored solutions across various sectors such as oil and gas is commendable,” he said.
David Marshall, the GardaWorld Managing Director for East Africa, emphasized the significant growth potential in the Ugandan market, stating; “With over 3,000 security professionals, GardaWorld Uganda is poised to become one of the country’s leading security service providers.” The company’s diverse offerings cater to critical sectors, including oil and gas, commercial, residential, retail, and hospitality.
“The rebranding of KK Security to GardaWorld Security signals a transformative moment for Uganda’s security sector. By concentrating on improving employee welfare and creating new job opportunities, GardaWorld is not only enhancing its operational capacity but is also committed to fostering a safer, more prosperous society,” Marshall added.
A crucial element of GardaWorld’s strategy is addressing the rising concerns about crime linked to private security personnel. “Improving employee welfare is essential in reducing these incidents,” noted Robinson Mwenda, the GardaWorld Security Uganda Country Director.
By investing in comprehensive training, competitive compensation, and mental health support, GardaWorld aims to empower its employees to perform their roles with integrity and professionalism.
He said Gardaworld, which already operates in various countries including 12 in Africa, would create many new employment opportunities, a timely development in light of Uganda’s current economic landscape.
The security sector is well-positioned to absorb job seekers, especially as demand for professional security services continues to grow. By prioritizing employee welfare, GardaWorld enhances job satisfaction and fosters a more trustworthy security environment.
“When employees feel supported and valued, the likelihood of unethical behaviour decreases,” Marshall added, highlighting the correlation between employee well-being and community safety.
“This focus on fostering a positive workplace culture not only benefits employees but also strengthens the overall security framework within the community. Furthermore, GardaWorld’s commitment to tailored security solutions enables it to meet the specific needs of its diverse clientele. This dedication strengthens client relationships and instils pride among employees who recognize the impact of their work,” Mwenda said.
The United Nations Population Fund (UNFPA) and Diamond Trust Bank (DTB) Uganda have signed a partnership worth USD106,458 (about UGX400 million) as a contribution to efforts aimed at reducing school absenteeism and improving menstrual hygiene for young girls in Uganda’s marginalized communities.
Speaking at the signing event in Kampala on September 18, officials said the contribution would support the Strengthening Adolescents and Youth (SAY) Empowerment and Rights Programme, aimed at enhancing access to and utilization of SRHR and SGBV information and services among young people aged 10-24 in refugee settlements and their host communities.
“It is a pleasure for DTB and UNFPA to have this partnership as it will benefit our young people in Uganda,” said Gift Malunga, Country Representative of UNFPA.
“This partnership underscores the importance of improving the menstrual hygiene situation among vulnerable schoolgirls in Uganda’s marginalized areas.”
The partnership between UNFPA and DTB not only addresses immediate needs but also lays the foundation for sustainable health improvements and gender equality, ultimately contributing to the overall development and empowerment of Uganda's youth.
Mbabazi Emejeit, DTB’s Executive Director, stated that their sustainability agenda looks at creating an environment and communities where social development is obtained by all.
The contribution would enable 10,000 vulnerable schoolgirls have access to: - packets of reusable sanitary pads (School Girl Kit) consisting of 5 pads: two maxi, two mini, one super maxi, and two carrying pouches (one leak proof pouch for storing soiled pads); 10,000 pairs of underwear; 10,000 backpacks; hygiene education booklets (available in three languages).
The reusable sanitary towels have a lifespan of up to two years. These are supplied by AFRIpads Uganda, a company credited as thought leader and active contributor to advancing the menstrual movement worldwide.
“Through partnerships like this one, we intend to reach 10,000 vulnerable girls through our Achieve More Girl initiatives intended to sustain the girl-child in school as she prepares for social development goals in adulthood,” said Mbabazi, adding that it is part of their commitment to the bank’s comprehensive Sustainability and Citizenship Master Plan.
The SAY Programme, launched last year by the Danish government in collaboration with UNFPA, is a four-year initiative running from January 2024 to December 2027.
The DTB/UNFPA partnership focuses on collaborating on health system transformations to enhance the health and well-being of women and girls, scaling up health innovations, developing innovative financing models for sustainable interventions, and conducting joint advocacy efforts to raise public awareness and visibility.
Direct beneficiaries of this partnership are expected to register reduced school absenteeism during the menstrual period and will have improved knowledge on reproductive health and menstrual hygiene.
Globally, the United Nations recognizes 180 currencies as legal tenders. The factors that determine the strength of a currency include the amount of the currency held by other countries as foreign reserves, demand and supply in foreign exchange trading (buying and selling of currencies, in pairs, with the intention of making a profit), as well as international acceptability and purchasing power of the currency, among others. Here is the list of the top ten currencies in the world in 2024
10. New Zealand Dollar: The New Zealand Dollar (NZD or ‘Kiwi’) is 10th most traded currency in the world, thanks to the country’s powerful dairy and tourism industries. For every 1 NZD, one would receive 0.62 USD.
9. Hong Kong Dollar (HKD): As one of the most traded currencies, it sits at the 9th position in the world’s most traded, thanks to the country’s international financial trading and financial services center status, coupled with tourism and manufacturing. One Hong Kong dollar gets you 0.13 US Dollars.
8. Swiss Franc: The Swiss Franc, the national currency of Switzerland and Liechtenstein, is the 8th most-traded currency, thanks to the country’s popularity for fiscal responsibility and low debt rate, in addition to assets like gold reserves and other precious metals.
7. Canadian Dollar: It is the 6th most widely forex traded currency, accounting for about 5% of daily trades on global foreign exchange market, thanks to the country’s robust gold, lumber, agricultural products and crude oil exports to the USA. A Canadian dollar exchanges for 0.75 US Dollars.
6. Australian Dollar: AUD — the Australian Dollar — is the 6th most stable currency in the world, contributing 6.8% to daily forex trades, thanks to the country’s abundant natural resources such as gold, coal, and iron ores, among others. For every 1 Australian Dollar, the exchange rate is 0.67 U.S. Dollars.
5. Chinese Yuan: Chinese Renminbi, or yuan, is the fifth most powerful currency in the world in 2024, as it continues to gain importance as a global trade settlement currency. One Chinese Yuan exchanges for 0.14 US Dollars.
4. Pound Sterling: The United Kingdom’s Pound Sterling has held its place as one of the strongest currencies in the world. The currency has a 5% reserve currency share in central banks across the world.One Pound on the foreign exchange markets gets 1.27 U.S. Dollars.
3. Japanese Yen: One of the preferred Asian currencies, the Japanese Yen continues to gain traction as a popular reserve currency. Goldman Sachs considers the Yen to be the cheapest and safest currency to invest in. One Japanese yen exchanges for 0.0069 US Dollars.
2. Euro: The Euro, the official currency of the 19-member European Union, is the most commonly used official currency. Many countries, including several African countries, peg their currencies to the Euro. The EUR/USD (known as ‘Fiber’) has the distinction of being the most-traded currency pair in the world. (One Euro is equivalent to 1.10 US Dollars).
1. US Dollar: The US Dollar, or the USD, is the strongest currency in the world. The currency has universal recognition and is the most traded currency in the world, with 85% of all forex trade being carried out in the US dollar. According to the IMF, 59% of the global foreign reserves in global Central banks is kept in USD.
[Additional reporting from Insider Monkey)
In a new report, the International Monetary Fund (IMF) has warned commercial banks against overreliance on Government securities saying it raises serious financial concerns for the country’s economy.
Over the years, Ugandan banks have invested significantly in the country's treasury bond market, holding a substantial portion of government securities, which are needed to finance public projects and sovereign debt management.
According to the IMF, Ugandan banks’ holdings of government debt as percent of their total assets rose significantly from 21% in 2019 to 29% in 2023, which according to the IMF has resulted in elevated interest rates and contributed to subdued private sector credit growth.
“It also poses potential credit and liquidity concerns for banks in times of financial strain or sovereign credit downgrade,” the report reads in part.
Whereas some jurisdictions have regulations that mandate a level of government securities that banks must hold, the yield on government securities relative to other investment opportunities can influence the amount banks invest in many developing countries with fragile economies. If yields on government securities are low compared to other assets, banks might reduce their holdings in favor of more profitable investments.
However, the report notes that Uganda’s inflation outlook remains non-threatening though there are upside risks. Headline and core inflation are projected to continue their upward momentum, averaging 4.6% and 4.9%, respectively, in FY24/25 as the economic recovery strengthens, nearing the BoU’s target of 5%. Upside risks to inflation come from commodity price volatility, weather conditions, and exchange rate depreciation pressures stemming from limited capital inflows.
Overall, it says the country’s medium-term prospects are supported by the projected start of oil production in the last quarter of 2025.
“While Uganda is not expected to become a major oil exporter, oil production is expected to temporarily boost growth and help bring more durable improvements in fiscal and external positions,” according to the report.
Real GDP growth is estimated to have reached 6% in FY23/24, helped by favorable weather conditions, subdued inflation, and the positive impact of the roll-out of the Parish Development Model (PDM).
Additionally, the IMF is cautioning the Government against squandering the oil revenues on consumption and corruption.
“Once oil production starts, the windfall revenues should be used to alleviate structural impediments to growth, improve social development and ensure inter-generational equity,” the report reads.
A delay of oil production and slower-than-expected implementation of reforms pose other downside risks. With mostly rain-fed agriculture, Uganda remains vulnerable to climate shocks. Broader economic impact from the oil sector investments, favorable weather for agricultural harvests, accelerated structural reforms, and improved global economic conditions could improve the outlook.
A prudent fiscal management framework is needed to ensure effective use of oil resources once oil production starts, with part of the oil revenues used to scale up much needed growth-supporting and social spending, and the rest saved to ensure inter-generational equity.
Public debt is expected to remain at about 50% of GDP over the medium term, with the Debt Sustainability Analysis indicating that the external debt burden and public debt indicators remain below their respective thresholds and benchmarks though there is a moderate risk of overall and external debt distress. Also, the IMF is concerned that public spending on education and health remains below those in peer countries and affordability is identified as a top constraint by primary students failing to complete primary school.
The IMF argues that with Uganda’s population projected to more than double by 2060 from its current level of 46 million and 70% of that population projected to be of working age, Uganda faces enormous investment needs in education, skills, and health if it is to benefit from the demographic dividend.
Additionally, there is concern about climate change impacts on the country, with the frequency of floods and droughts increasing the country’s vulnerability to climate change in a context of high poverty levels and over-reliance on rain-fed agriculture.
The Uganda Revenue Authority (URA) has reported an impressive performance for August, with revenue collections surpassing the set target.
The total net revenue for the month stood at UGX 2.345 trillion, exceeding the target of UGX 2.316 trillion by UGX 28.19 billion. This achievement represents a performance rate of 101.22%, signalling a strong start to the fiscal year for the tax body.
In August 2024, domestic revenue collections amounted to UGX 1.492 trillion, surpassing the target of UGX1.465 trillion by about UGX 27 billion. On the other hand, customs revenue collections reached UGX928 billion, outperforming the target of UGX918 billion by UGX10.32 billion.
This overall growth marks a 9.96% increase in net revenue compared to August 2023. Specifically, domestic revenue collections saw a growth rate of 11%, while customs revenues grew by 10.23%.
This surplus is a result of URA’s concerted efforts to enhance revenue mobilization, complemented by a strong compliance culture among taxpayers. URA Commissioner General John Rujoki Musinguzi acknowledged the support from various stakeholders, highlighting the Ministry of Finance’s crucial role in this achievement.
“As we strive to mobilize revenue towards our nation’s economic growth, we recognize the invaluable contribution of every citizen in meeting their tax obligations. Our success is also a reflection of the unwavering support from our supervisors, the Ministry of Finance, and the strong interest our leaders in the government have shown in taxation matters. Their guidance and commitment have been instrumental in driving the reforms that continue to enhance our revenue mobilization efforts,” said Musinguzi.
For this new financial year, URA was handed a record target of about UGX32 trillion, out of a national budget of UGX72 trillion.
URA’s performance in the first two months of the 2024/2025 financial year (July to August 2024) with a cumulative surplus of UGX168.3 billion, has given some hope that the hefty target would be achieved.
The total net revenue collection for the two months was UGX4.582 trillion, exceeding the target of UGX4.44 trillion - representing a growth of 15.2%, or UGX604 billion, compared to the same period last year.
This continued growth is a result of URA’s ongoing tax administration reforms, aimed at streamlining processes and increasing efficiency. These reforms have bolstered revenue collections, allowing URA to meet and surpass its targets consistently.
To further support taxpayers and encourage compliance, the government has introduced a tax penalty waiver for businesses with tax arrears from the previous financial year. This waiver applies to unpaid taxes as of 30th June 2023, providing an opportunity for businesses to settle their obligations without facing penalties.
Robert Kalumba, the Assistant Commissioner for Public and Corporate Affairs, emphasized the importance of this initiative in fostering economic progress.
“The surplus in revenue collection is a testament to the unwavering commitment of taxpayers in meeting their tax obligations and the ongoing reforms in tax administration aimed at streamlining processes and improving revenue collections. This relief is an opportunity for businesses with unpaid taxes as at 30th June 2023 to settle their obligations and contribute to the nation’s continued economic progress,” said Kalumba.
“URA’s strong performance in August 2024 and the first two months of the financial year is a clear indication of its commitment to enhancing revenue mobilization. The surplus, coupled with growth in both domestic and customs revenues, highlights the effectiveness of the ongoing reforms and the importance of taxpayer compliance in achieving national economic goals. As URA continues to streamline its processes, it is expected that these positive trends will contribute significantly to Uganda’s economic growth in the coming months,’’ Kalumba added.
The Government is outlining an ambitious strategy for the 2025/2026 fiscal year, aimed at steering the country towards a fully monetized and formalized economy.
The ten-fold growth strategy focuses on four pivotal sectors including; Agro-Industrialization and Light Manufacturing, Tourism Development, Mineral-Based Industrial Development, as well as Science, Technology, and Innovation (STI).
Presenting the budget strategy for 2025/26 at the budget conference in Kampala on September 11, Finance Minister Matia Kasaija emphasized that these sectors are critical for Uganda's industrialization goals. According to Kasaija, they offer substantial opportunities for job creation, infrastructure development, and export growth, positioning Uganda for a new era of economic prosperity.
Kasaija stated that while agriculture remains the backbone of Uganda’s economy, the government is pushing for a shift from subsistence farming to a commercialized, value-added agro-industrial model.
The goal, he said, is to generate $20 billion from agriculture in the upcoming financial year, leveraging value addition in key commodities such as coffee, tea, fish, and maize. The export value of these commodities has nearly tripled over the past three years.
He also noted that the establishment of 2,263 Agro-Processing Facilities (APFs) and an increase in grain storage capacity to 1.2 million metric tons have contributed to a significant reduction in post-harvest losses. However, challenges persist, with 40% of APFs non-functional and 30% operating below capacity.
To address these issues, he said the government plans to improve access to affordable credit, promote micro-scale irrigation systems, and support productivity enhancements.
Tourism, a major foreign exchange earner for Uganda, is recovering well from the pandemic. The sector has reached 82.6% of its pre-pandemic international arrivals, with a 48.5% increase in international tourism receipts.
Kasaija said:” We project $50 billion in tourism revenue for the coming year, driven by infrastructure improvements at key tourist sites, the promotion of health and education tourism, and the expansion of the domestic tourism market.”
In the mineral sector, particularly in oil and gas, he noted that significant progress is anticipated. The East African Crude Oil Pipeline (EACOP) is set to commence soon, with Uganda expected to start oil production by 2025.
Kasaija said this development is projected to stimulate growth in the petrochemical industry and lead to the establishment of a crude oil facility at Bujuuko, near Kampala.
“The government is also advancing in mineral value addition, with new cement and ceramics factories, gold refineries, and smelting plants enhancing Uganda's regional standing. Future plans include launching a National Mining Company and a minerals-tracking system to promote transparency and private sector participation,” he said.
He also stressed the importance of resource governance and infrastructure development to ensure that Uganda’s mineral wealth benefits all citizens. He revealed that the government is also committed to advancing investments in Research and Development (R&D), pathogen economy innovations, and the automobile industry. He said: “By linking research hubs with universities and industry operators, our aim is to become a knowledge-based economy, driving innovations in vaccine development and diagnostics.”
On the energy side, Kasaija said investments in infrastructure have been central to Uganda's growth strategy. The country's energy generation capacity has tripled over the past 13 years, with 57% of households now having access to electricity. The expansion of the national transmission network and the adoption of off-grid solar technologies have increased per capita electricity consumption to 218 kWh in 2023/24, more than double the figure during 2017/18.
“In transport infrastructure, the proportion of paved roads has risen to 29.4%, improving trade, tourism, and connectivity. Rail freight has also increased, significantly reducing transport times between Kampala and Mombasa. The government's strategic focus on these key sectors is expected to drive Uganda's economic growth and transformation, paving the way for a more prosperous future,” Kasaija said.
While closing the conference, Prime Minister Robinah Nabbanja commended Central and Local Goverment, Development Partners, Private Sector and Civil Society partners for actively participating in the budget consultations for FY 2025/26, adding that their feedback would be considered during the formulation of next year’s budget.
Uganda Airlines has made its maiden flight to Abuja, Nigeria, a significant milestone in the airline’s expansion plan, aimed at facilitating smoother travel across the African continent.
The inaugural two-hour flight started from Entebbe International Airport at 16:00 hours on September 12, landing in Nigeria’s administrative capital, Abuja, at 18:15. Operated by the flagship Airbus A330-800neo, the route will initially run twice weekly on Thursdays and Sundays, officials said.
Uganda Airlines’ Chief Executive Officer Jenifer Bamuturaki, said the addition of Abuja to the airline's growing list of destinations reflects their commitment to facilitating business, tourism, and leisure travel across Africa.
"We are proud to be living up to our promise to take Nigeria to Uganda and bring Uganda to Nigeria," Bamuturaki said.
The new route has significant implications for Uganda's economy. With direct flights between Entebbe and Abuja, the airline addresses a key connectivity gap in Africa, making travel between the two countries easier and more affordable.
Fred Byamukama, the Minister of State for Works, emphasized the strategic importance of the move. He noted that enhanced air connectivity between African nations, particularly in light of the African Continental Free Trade Area (AfCFTA), would reduce travel costs and increase trade, investment, and economic cooperation across the continent.
Established in 1991 as a replacement for the former capital Lagos, Abuja not only serves as the capital city of Africa’s most populous country but is also a diplomatic hub, hosting numerous embassies and international organizations.
“Abuja, as a major political and economic hub in Nigeria, presents opportunities for Ugandan businesses to explore new markets and for Nigerian investors to consider opportunities in Uganda. Direct flights also make it easier for tourists from Nigeria, Africa’s most populous nation, to visit Uganda, hence boosting the tourism sector. Given the cultural ties forged through Nigerian movies and entertainment, these flights will help strengthen cultural exchanges and foster mutual understanding between the two countries,” Byamukama added.
With Uganda’s rich natural attractions, including the famous Mountain Gorillas, national parks, and the source of the River Nile, the country stands to attract a greater number of Nigerian tourists. Likewise, Ugandans will have easier access to Nigeria’s vibrant culture and business hubs.
The two-way tourism and business flows will contribute to increased foreign exchange earnings, job creation, and growth in Uganda's hospitality industry, according to Bamuturaki.
“The route will serve as a critical trade bridge. Nigerian goods will find new markets in East Africa, and Ugandan products such as coffee, tea, and fresh produce will have a more direct path to West Africa, further supporting Uganda's export economy,” she added.
As Africa strives for deeper integration, Uganda Airlines’ expansion aligns with the continent's broader aspirations. By improving intra-African air connectivity, the airline aims to support the goals of AfCFTA, facilitating easier movement of people, goods, and services. This step enhances Uganda’s role in advancing continental cooperation and integration.
Flights to Lusaka, Zambia, and Harare in Zimbabwe, are set to start on September 25 also on the Bombardier CRJ-900neo aircraft.
The airline already flies to Kinshasa (DR Congo), Mogadishu (Somalia), Mombasa and Nairobi (Kenya), Bujumbura (Burundi), Dar es Salaam and Kirimanjalo (Tanzania), Johannesburg (South Africa), Juba (South Sudan), and Zanzibar.
The government's decision to tighten grain procurement rules is stirring mixed reactions among suppliers. While the government says the new regulations aim to improve grain quality, some suppliers are concerned that the costs of meeting these new standards could put them out of business.
At a press briefing at the Uganda Media Centre on August 27, Investment State Minister Evelyn Anite told journalists that public institutions would only procure grain from entities that are certified by the Uganda National Bureau of Standards (UNBS), in a move aimed at protecting public institutions from poor quality grain and the associated health risks.
“These new guidelines are not just about meeting international standards, but also about protecting the health of our people and ensuring that our grain is competitive in the regional market,” she stated.
Anite explained that the new guidelines were a step towards eliminating substandard grain from the market, which has been a persistent issue, particularly concerning the presence of aflatoxins in maize and other cereals. More than 600 maize providers have already been certified by the UNBS countrywide.
However, small-scale local suppliers, particularly small-holder farmers and traders, are concerned about the high costs associated with certification.
Moses Kibirige, a maize supplier, voiced his concerns, saying: “To be certified is good, but at what cost? Certification involves additional expenses that many of us may not afford. If the government wants to implement this, they should do so with a supportive approach, not in a manner that feels like they're trying to siphon money from us. Otherwise, some of us might be forced to leave the business, which will ultimately reduce government revenue.”
The concerns raised by suppliers like Kibirige are valid, as certification involves meeting various standards that require financial investment. According to a report by the Uganda National Bureau of Standards, the cost of certification can range between UGX500,000 to UGX2 million, depending on the size and scale of the business. This financial burden could be particularly heavy for small-scale suppliers, who may struggle to meet these costs without external support.
Mike Kironde, the national chairperson Proprietors of Private Educational Institutions Association in Uganda (PPEIAU), told Business Edge that the new policy would lead to serious supply chain disruptions and high prices.
“These guidelines will reduce the number of suppliers capable of meeting the standards, leading to potential shortages. Public entities could face delays in procurement or difficulty finding compliant suppliers, which could disrupt essential services,” he said.
‘’Yes, we want quality and we are concerned about the health of our children therefore we need to be smart in the implementation of these guidelines otherwise suppliers may raise prices to cover the costs of meeting the new quality standards (better storage, transportation, and processing). This could strain the budgets of public entities, particularly those with large-scale grain needs like boarding schools, the security services, and hospitals,” he added.
However, Harriet Nabirye, in charge of member services at the Grain Council of Uganda, expressed support for the government’s decision because of the poor-quality grain supplied by unlicenced companies.
“Uncertified suppliers have been a major challenge in the grain market. The presence of aflatoxins has not only affected the health of consumers but has also tarnished the reputation of Ugandan grain in the international market. These new guidelines will help us improve the quality of our grain and ensure that only the best products reach the market,” Nabirye said.
"I suggest that the Uganda National Bureau of Standards and other stakeholders in the sector should come together to find ways to make certification more affordable," she added.
Whereas the Government insists that the new policy would lead to a reduction in health-related issues caused by contaminated grain and enhance Uganda's reputation as a reliable source of high-quality agricultural products, how it would be implemented particularly in rural areas where there are very few certified producers, remains to be seen.
Gender, Labour and Social Development Minister Betty Amongi has appointed David Ogong as the new chairperson of the new Board of Directors for the National Social Security Fund (NSSF), replacing Peter Kimbowa whose contract was not renewed.
The decision not to renew Kimbowa's contract was widely expected after Amongi’s public spat with him over former NSSF MD Richard Byarugaba, whom Amongi accused of mismanaging the Fund. However, Court and the IGG eventually absolved Byarugaba of any wrongdoing.
Ramathan Ggoobi, the Finance Ministry Permanent Secretary and Secretary to the Treasury, also joins the Board, replacing Patrick Ocailap.
Richard Bigirwa also joins as a workers’ representative under the National Organisation of Trade Unions (NOTU), replacing Lwabayi Mudiba Hassan.
Aggrey David Kibenge is to represent the Ministry of Gender, Labour and Social Development.
Silver Mugisha, the NWSC MD, and Annet Mulindwa Nakawunde, the Finance Trust Bank MD, have also been re-appointed to represent employers under the Federation of Uganda Employers (FUE).
Other appointees are Dr. Sam Lyomoki and Penninah Tukamwesiga representing workers under the Confederation of Free Trade Unions (COFTU), and Annet Birungi, also representing workers under the National Organisation of Trade Unions (NOTU) where she is the Secretary for Gender and Women Affairs.
Patrick Ayota, the NSSF Managing Director, will continue to serve as an executive member of the Board.
Addressing the new Board at an inauguration ceremony, Amongi urged the Board to ensure the growth and profitability of the Fund.
“It is now your responsibility to keep the tradition of excellence that the Fund has enjoyed over the years,” she said.
Speaking about his appointment, Dr. Ogong pledged to ensure that the track record of the exemplary performance of the Fund over the years is maintained.
“It is a privilege that I take seriously. NSSF holds members' savings in trust and indeed it is a major obligation to ensure that this trust is kept and maintained. I believe we do that by providing the necessary oversight that ensures that the Fund keeps members’ funds safe even as it grows,” he said.
He added that he would lead with teamwork to ensure that the Fund meets the challenges ahead of time and takes advantage of the immense opportunities.
“I have had an opportunity to familiarize myself with Vision 2035. Working together with the Board and Management of the Fund, I commit to ensuring that the long-term strategies of the Fund are achieved,” he added.
NSSF Managing Director Patrick Ayota welcomed the new appointments and re-appointed the Board members, saying the newly appointed members would bring immense experience, while the re-appointed members of the Board ensure that there is continuity and a smooth transition from the 12th to the 13th Board.
Uganda's revenue collection is facing a serious threat from the growing backlog of government arrears, which is straining the Uganda Revenue Authority’s (URA) ability to meet its targets.
During a high-level meeting between the URA and the World Bank, this pressing issue took center stage as both parties discussed reforms aimed at boosting revenue and strengthening Uganda’s financial stability.
The agenda focused on Uganda's Public Investment Management (PIMS), domestic revenue mobilization, climate change resilience, and IT system integration. However, the conversation quickly turned to a critical challenge the accumulation of government arrears.
John Rujoki Musinguzi, the Commissioner General of the URA, who was panellist with Dr. Verena Maria Fritz, the Lead Governance Specialist from the World Bank, emphasized the growing pressure caused by these arrears, explaining how they are creating cash flow unpredictability and making it harder for the URA to plan effectively.
"The accumulation of government arrears has become a significant barrier to our efforts in revenue collection. It disrupts our ability to project and mobilize funds efficiently," he said, urging the World Bank to provide guidance on improving cash flow predictability.
This issue goes beyond the URA’s administrative operations. Accumulating arrears can destabilize public services, delay government projects, and reduce the ability to meet budgetary obligations. With the economy heavily reliant on consistent revenue streams, this creates a ripple effect that could hinder Uganda’s economic growth and development efforts.
According to URA, despite these challenges, they are working towards the Domestic Revenue Mobilization Strategy (DRMS), an initiative aimed at increasing taxpayer compliance and boosting revenue. Internal reforms are a key part of this strategy, including the implementation of digital solutions designed to enhance efficiency.
Among these are the Bonded Warehousing Information Management System (BWIMS), automated audits, and the Digital Tracking Solution, which have helped streamline operations and improve tax collection.
Government arrears can arise when the government delays payments to private sector suppliers of goods and services, interest on bonds, and other parties.
In addition to technology-driven reforms, URA is focusing on building human capital to modernize tax administration. Musinguzi highlighted the creation of a Tax Academy aimed at equipping staff with the skills needed for efficient tax management. Furthermore, URA has established a strategy and risk management division to address enterprise risks and guide future organizational direction.
In combating corruption, Musinguzi emphasized the role of the newly formed Integrity, Compliance, and Ethics Division. By tackling corruption and improving accountability, URA aims to create a more trustworthy tax system.
On the technology front, Robert Mutebi, URA’s Commissioner of Information Technology and Innovation, said they have made a deliberate decision to ensure that all revenue collected is traceable through advanced automation. This approach, he added, is intended to make tax collection more efficient and taxpayer-friendly, reducing the administrative burden and minimizing errors.
The meeting also touched on the broader issue of climate change resilience. While specific strategies were not fully outlined, both parties recognized the importance of incorporating climate risks into revenue administration.
Building resilience to climate-related disruptions could help safeguard revenue streams from natural disasters or shifts in the agricultural economy, which Uganda heavily relies on.
However, Musinguzi acknowledged that these digital reforms have not been without challenges. The rollout of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) has faced hurdles, particularly among small taxpayers, leading to a temporary suspension of enforcement, which has delayed full implementation, further straining efforts to increase revenue collections.
For the 2024/2025 financial year, the URA was handed a target of about UGX 32 trillion out of a national budget of UGX 72.136 trillion.
Nigeria's Dangote Oil Refinery has begun processing gasoline after delays caused by recent crude shortages, an executive said on Monday.
The $20 billion refinery on the outskirts of Lagos, built by Nigerian billionaire Aliko Dangote, began operations in January with output of products including naphtha and jet fuel.
With a capacity of 650,000 barrels per day, Africa's largest refinery promises to ease oil producer Nigeria's costly reliance on imported oil products, Reuters reported on Tuesday.
"We are testing the product (gasoline) and subsequently it will start flowing into the product tanks," said Devakumar Edwin, a vice president at Dangote Industries Limited. He did not say exactly when the gasoline would hit the local market.
Edwin said state-oil firm NNPC Ltd, Nigeria's sole importer of gasoline, would buy its gasoline exclusively.
"If no one is buying it, we will export it as we have been exporting our aviation jet fuel and diesel," Edwin said. The Dangote oil refinery will supply a total of 25 million litres of petrol to the Nigerian market daily, according to press reports in Nigeria.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority disclosed on Tuesday that this would rise to 30 million litres in the coming weeks.
“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September. And will subsequently increase this amount to 30 million litres daily from October 2024,” the NMDPRA said on its X page.
The delivery of gasoline into the Nigerian market will ease NNPC's struggle to supply the local market. The company is reeling with debts of $6 billion to oil traders for supplies since January.
This has affected its ability to supply the local market where fuel queues have persisted since July.
Nigeria is Africa's top oil producer yet it imports almost all its fuel due to years of neglect of its national refineries.
The development of local gasoline production by Dangote Oil Refinery would thus reduce Nigeria’s dependence on fuel imports, thereby improving its energy security.
Uganda’s agricultural sector is experiencing an intense transformation, with the beef industry emerging as a pivotal force in this evolution.
The recent praise heaped on beef processors, Ranches Finest, by Investment Minister Evelyne Anite, highlights the significant shift towards value addition in Uganda’s beef sector. This recognition marks a turning point for the industry, illustrating its potential to reshape Uganda’s agricultural landscape and enhance its global standing.
Traditionally, Uganda's agricultural exports have been limited to raw products, constraining economic growth and undervaluing the nation's agricultural assets. The move towards value-added exports represents a critical juncture for the sector. By transforming Ugandan beef into premium products suitable for international markets, companies like Ranches Finest are not only advancing their own interests but also elevating Uganda’s agricultural sector on the global stage.
Ranches Finest’s comprehensive approach—from ranching to processing—ensures that Ugandan beef consistently meets international standards. This holistic model addresses longstanding issues of exploitation by engaging directly with farmers, offering fair prices, and establishing reliable markets. The expansion into new markets such as the DR Congo and South Sudan further demonstrates the increasing recognition of Ugandan beef. Moreover, the emphasis on halal certification opens doors to lucrative markets in Egypt and the UAE, showcasing a forward-thinking strategy with substantial long-term benefits.
However, despite these advancements, significant challenges persist. The slow pace of licensing and certification processes remains a major hurdle. To fully capitalize on the sector’s potential, Uganda must streamline these processes, drawing from successful reforms in other sectors. Effective regulatory frameworks and collaborative efforts will also be essential in overcoming these obstacles.
Government policies, such as the "Buy Uganda, Build Uganda" (BUBU) policy, play a crucial role in supporting the sector. By prioritizing locally produced goods, this policy helps create a stable market for Ugandan products and fosters sector growth. For Uganda to compete effectively on the international stage, focusing on beef quality is paramount. Securing certifications such as halal and adhering to stringent sanitary and phytosanitary standards will expand market reach and bolster consumer confidence. Investing in modern infrastructure—such as upgrading abattoirs, improving cold chain storage, and enhancing logistics—is crucial for minimizing waste and ensuring high-quality meat.
Additionally, robust traceability systems are also essential for building trust with international buyers. Transparency in tracking the origin and quality of Ugandan beef will strengthen Uganda’s reputation as a reliable exporter and attract global consumers who demand detailed product information. Moreover, meeting the growing international demand will require expanding cattle production, supporting ranchers and smallholder farmers with better access to financing, land, and veterinary services to boost production capacity. Also, establishing large-scale beef farms will further enhance production and help meet global demand.
There is no doubt that enhancing the beef value chain is critical for the sector’s growth. However, this includes improving feeding practices, breeding techniques, and disease management. Integrating farmers into formal supply chains and ensuring fair market access will stabilize production and drive sector development.
Ranches Finest’s successful model illustrates the benefits of directly engaging with farmers. By ensuring fair market access and collaborating closely with ranchers, Uganda can reduce exploitation, improve farmers' livelihoods, and promote a more equitable beef industry.
Uganda can benefit from bilateral and multilateral trade agreements to lower tariff barriers and gain preferential market access. Branding Ugandan beef as organic, grass-fed, and ethically produced will appeal to niche markets that value sustainability and quality. Highlighting the environmental and social benefits of Uganda’s beef production will definitely differentiate Ugandan beef in competitive markets.
Securing international certifications and participating in global food and agricultural exhibitions is also another opportunity we can look at to enhance Uganda’s reputation as a quality beef exporter. Such recognition would improve market perception and build consumer trust. To support the sector's growth, the government should offer incentives such as affordable land for beef processors and exporters. Strengthening regulatory frameworks would ensure compliance with international standards and safeguard Uganda’s reputation.
Perhaps one of the most interesting areas would be investing in rural infrastructure—such as roads and electricity— which would improve market access for beef producers, lower transportation costs, and enhance supply chain efficiency.
Training programs in modern cattle farming techniques and climate-resilient practices will is setting a remarkable example, showcasing the potential of Uganda’s beef industry. The shift from raw exports to value-added products is more than a trend; it represents the future of Uganda’s agricultural sector.
I believe that with continued investment and support, Uganda is poised to make a significant impact on the global stage. By focusing on quality control, infrastructure development, and expanding market access, Uganda’s beef industry can become a major economic driver, creating jobs, increasing revenue, and establishing Uganda as a leader in value-added agriculture.
The time is ripe for Uganda to seize this opportunity and drive forward its ambitions in the global beef market.
(The writer is a business journalist)
Diamond Trust Bank (DTB) has become the latest financial institution to sign the UN Principles for Responsible Banking, which aim to align the banking sector with the goals of the UN Sustainable Development Goals (SDGs) and the Paris Agreement on climate change.
Speaking at the signing ceremony in Nairobi, Kenya, DTB Group CEO and Managing Director, Nasim Devji, emphasized the importance of this commitment stating; "Signing the UN Principles for Responsible Banking is a testament to our commitment to sustainability and responsible banking. This commitment reflects our purpose to improve the quality of life of all our stakeholders in a sustainable and impactful way. It underscores our dedication to integrating sustainable practices into every aspect of our business. We are proud to be a part of this global initiative and look forward to making meaningful progress towards a sustainable future."
The initiative is a single framework for a sustainable banking industry developed by collaborating with banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI).
The UN Principles for Responsible Banking provide a comprehensive framework for banks to assess, manage, and mitigate environmental and social impacts while seizing opportunities to transition to more sustainable economies. This commitment spans DTB Group franchises in Kenya, Uganda, and Tanzania marking a unified regional pledge to embrace and implement responsible banking practices.
The Principles call on banks to lead by example, demonstrating how banking products, services, and relationships can support the necessary changes to achieve shared prosperity for both people and the planet. Under the Principles, DTB will identify and measure its business activities' environmental and social impact, set and implement targets where they have the most significant impact, and regularly report publicly on their progress.
DTB Uganda CEO Godfrey Sebaana expressed delight at being part of a broader global movement towards integrating sustainability into banking practices, saying that they are committed to advancing the UN Sustainable Development Goals (SDGs).
“We are uniquely positioned to influence businesses and consumers by financing projects that address climate change, reduce inequality, and promote sustainable consumption. As intermediaries of capital, banks can accelerate the transition to a more sustainable economy, helping to meet the SDGs by 2030 and beyond. By integrating ESG considerations into our lending, investment, and advisory services, banks can drive economic growth that is inclusive and environmentally responsible.”
DTBU’s commitment to sustainability is about leading the industry in responsible banking practices. “Transparency is a cornerstone of our sustainability strategy, we are committed to regular and comprehensive reporting on our sustainability performance aligned with global standards,” Sebaana noted.
This proactive approach ensures that DTB's growth goes hand-in-hand with positive societal impact, further solidifying the bank's position as a leader in responsible banking.
With initiatives such as raising sustainable finance, developing green financial products, and implementing a responsible supply chain code of conduct, DTB is setting a strong example for the financial sector. As the bank continues to innovate, it is clear that DTB's dedication to sustainability will have a lasting impact on both the economy and the environment.
The Uganda Manufacturers Association (UMA) has officially launched the 30th Uganda International Trade Fair, set to take place from October 2 -10 at the UMA showgrounds at Lugogo, under the theme; "Celebrating 30 Years of Industrial Excellence."
According to Eddie Senkumba, the UMA Chairman of Communication and Events, told journalists at a press briefing that this year’s trade fair promises to be a landmark occasion, with the introduction of an agricultural pavilion as one of its most exciting additions.
"The agricultural pavilion is dedicated to training farmers, SACCOs, and cooperatives in value addition and agro-processing," Senkumba explained.
"It will serve as a hub for knowledge sharing, innovation, and collaboration, paving the way for a more prosperous and resilient agricultural sector in Uganda."
The officials said the agricultural pavilion is expected to be a game-changer for local farmers and agro-processors, offering them direct access to industry experts and cutting-edge technologies that can enhance productivity and profitability.
By providing practical training and resources, the pavilion will help farmers add value to their produce, making them more competitive in both local and international markets. This focus on agriculture is particularly timely, given Uganda's strong agricultural base and the need to transform it into a more industrialized and value-driven sector.
Ezra Rubanda, the Executive Director of UMA, emphasized that the trade fair is an important platform where UMA members can showcase their products in an engaging environment.
"This interaction helps bridge the information gap between manufacturers and consumers, contributing to the country’s agenda to increase industrialization and take advantage of Uganda’s resources," he said.
These interactions are vital for gathering feedback, which can drive product improvement and innovation. Additionally, by attracting a diverse audience, the trade fair offers local manufacturers the opportunity to expand their customer base and explore new markets.
With Uganda’s manufacturing output having grown from a modest $16.6 million in 1992 to $7.4 billion today, the importance of the trade fairs cannot be overstated.
With the UMA on a mission to build a culture of industrialization, the feedback gathered from consumers during the event will play a crucial role in shaping the future of Uganda’s manufacturing sector.
“This engagement ensures that the products and services offered by local manufacturers are in line with market demands, ultimately contributing to the sustainability and growth of the industry,” Senkumba added.
The 30th Uganda International Trade Fair is set to be a significant event for Uganda’s industrial sector, offering local manufacturers a unique opportunity to showcase their innovations, connect with consumers, and contribute to the country’s industrial and agricultural advancement.
As the nation celebrates 30 years of industrial excellence, the trade fair will undoubtedly play a crucial role in shaping the next chapter of Uganda’s industrial story.
Uganda is stepping up exploration in the Moroto-Kadam and Lake Kyoga basins, aiming to boost its reserves to 6.5 billion barrels of oil, a strategic move to solidify its position in the energy industry.
The Moroto-Kadam and Lake Kyoga basins are located in the north and northeast of the country respectively.
This initiative aims to identify new hydrocarbon reserves, in addition to the 6.5 billion barrels already confirmed in the Albertine basin in western Uganda. The country is thus positioning itself to increase its role in the oil market, by diversifying its sources of energy supply.
Initial geophysical studies suggest significant commercial potential, prompting the Ministry of Energy and Mining Development to step up exploration efforts. This is part of a wider strategy to fully exploit the country’s energy resources to support economic growth and strengthen its energy sovereignty.
Although promising, the development of new oil basins faces major challenges, particularly in terms of infrastructure and financing. Projects to develop existing oil fields, such as Tilenga and Kingfisher, are still behind schedule, mainly due to differences over project management and fiscal constraints. These delays have slowed drilling; only 72 of the 457 wells initially planned have been drilled.
Additionally, the key East African Crude Oil Pipeline (EACOP) project, designed to facilitate the export of Ugandan crude oil via Tanzania, is still awaiting financing.
Discussions with Chinese entities such as the Export-Import Bank of China (EXIM Bank) and the China Export & Credit Insurance Corporation (Sinosure) are underway to secure the necessary funds.
The outcome of these negotiations will be decisive for the continuation of the country’s energy infrastructure projects. The discovery of new reserves in the Moroto-Kadam and Kyoga basins could reposition Uganda as a key oil supplier in East Africa.
By boosting its production capacity, Uganda could attract new investment in the energy sector and increase its competitiveness on the regional market.
However, the success of this expansion will depend on the government’s ability to secure financing and overcome logistical obstacles.
The government is also in advanced stages of securing an investor for a refinery to process the crude oil into petroleum products such as petrol and diesel.
The development of the EACOP pipeline, in particular, is crucial for accessing international markets and maximizing the profitability of newly discovered reserves.
If financing is secured, Uganda could see a significant increase in oil production over the next few years, consolidating its position in the global energy sector.
The Uganda Bureau of Statistics (UBOS) has released the Consumer Price Indices and Inflation report for August 2024, highlighting a slight increase in monthly inflation and a noticeable rise in the prices of certain commodities, particularly mangoes and oranges.
According to the report, monthly inflation in August 2024 rose by 0.2%, despite a 3.4% decrease in the annual headline inflation, which now stands at 3.5%, down from 4.0% in July 2024.
The report revealed that the sharpest inflationary pressures came from mangoes and oranges, with prices soaring by 33.7% and 10.9%, respectively. In July 2024, a litre of orange juice was sold at UGX 1,716, but by August, this price had jumped to UGX 1,908.
Similarly, the cost of dried beans and sweet potatoes also saw a significant increase, contributing to the overall rise in food inflation.
Edgar Niyimpa, a principal statistician at UBOS, largely attributed the price hike to seasonal factors. “Some harvests are more vulnerable to seasonal changes, which directly impacts the supply and, consequently, the prices of these commodities," he said.
While mangoes and oranges experienced significant price hikes, the prices of other staple foods such as onions, matooke, cabbages, and cassava saw a slower rate of increase compared to the same period last year. This indicates that while some food items are becoming more expensive, others remain relatively stable, offering some relief to consumers.
On a positive note, the report also indicated a decrease in fuel prices, which is likely to alleviate some of the pressures on household budgets. The price of petrol dropped from UGX 5,436 per litre in July to UGX5,350 in August, while the price of diesel fell from UGX 4,919 to UGX 4,882 per litre over the same period. This reduction in fuel costs could have a stabilizing effect on the prices of goods and services that rely heavily on transportation, such as food distribution.
The UBOS officials warned that as the prices for essential commodities rise, citizens need to take proactive measures to manage their household budgets so as to mitigate the impact of inflation on their daily lives.
Niyimpa said that understanding the seasonal nature of price fluctuations can help consumers make informed decisions and maintain a balanced diet despite economic challenges.
According to the IMF, inflation is still a pressing issue in the broader East African region, especially driven by external factors such as global commodity price fluctuations, supply chain disruptions, and currency depreciation. As of August, inflation across Sub-Saharan Africa, including East Africa, remained high, with a median inflation rate nearing 9%. This is almost double the pre-pandemic levels and continues to strain household budgets, par-ticularly in food and energy.
While some countries are seeing slight improvements, the economic environment re-mains fragile, and any relief in inflation has yet to translate into significant economic growth or improved living standards for many people in the region.
On the global scene, inflation showed a mixed but generally declining trend, though the pace and extent varied by region. On a global scale, inflation is projected to decline to 5.9% in 2024 from 6.8% in 2023, with further decreases expected in 2025. However, the decline is uneven, with core inflation, particularly in services, remaining sticky and com-plicating monetary policy efforts.
Government Ministries, Departments, Agencies and institutions will not be permitted to purchase grain from uncertified suppliers, Evelyn Anite, the state minister for Investment and Privatization, has said.
Speaking at a press briefing at the Uganda Media Centre on August 27, Anite announced new guidelines for the purchase of grains, saying they are designed to enforce the quality of grain procured by public entities.
The guidelines, she added, do align with the National Grain Trade Policy of 2015, which stipulates that all public procurement of grain must be from suppliers certified by the Uganda National Bureau of Standards (UNBS).
"Uganda plays a critical role in the regional grain trade, but we have faced significant challenges due to the rejection of our grain products in the international market," Anite remarked.
"This is largely due to issues such as aflatoxin contamination, which results from poor post-harvest management practices. By ensuring that only certified suppliers are allowed to sell to government entities, we aim to elevate the standard of grain products."
The UNBS has been at the forefront of this quality assurance drive, having already certified over 630 maize grain providers. These certified providers boast a collective production capacity exceeding 217,000 tons per month, which according to Anite, ensures a reliable supply of high-quality grain for both domestic and regional markets.
The new procurement guidelines, formally recognized as Procurement Guideline No. 13 of 2024, was issued by the Public Procurement and Disposal of Public Assets Authority (PPDA).
They mandate all government entities, including ministries, departments, and agencies, to source their grain from UNBS-certified providers. This regulation took effect on August 23, 2024, and would also extend to Government-supported educational institutions including primary, secondary as well as tertiary institutions, starting January 2025.
This initiative is part of the government’s broader strategy to promote food safety and enhance the competitiveness of Uganda’s agricultural products within the East African Community (EAC).
"By adhering to these guidelines, we are not only protecting the health of our citizens but also enhancing the marketability of our grain products across borders," Anite said. "This is essential for sustaining the livelihoods of millions of Ugandans who depend on agriculture."
In addition to the immediate benefits, the government's focus on quality assurance is expected to foster greater confidence in Ugandan grain products among international buyers. This could lead to increased export opportunities and higher earnings for local farmers and traders.
The implementation of these guidelines will be closely monitored, with the PPDA and UNBS tasked with ensuring compliance across all government entities. The guidelines are to be distributed to all relevant accounting officers and made accessible on the PPDA web portal, providing transparency and ease of access.
How the new guidelines would impact household incomes and small-scale producers remains to be seen but by enforcing stringent procurement rules on farm produce, the government believes that it is positioning the country as a reliable source of high-quality grain, which is crucial for both national food security and national development.
True to her surname, which means ‘God has heard my prayers,’ Night Ampurire has been described by everyone as an extremely lucky woman.
The single mother of five children was using a dangerously dilapidated pickup truck to transport her fruits and vegetables to the market daily, which posed serious safety risks to her and her children.
On Tuesday, Ampurire was reduced to unprecedented tears of joy when MTN Uganda gifted her with a brand-new Nissan double-cabin pickup truck to boost her fresh produce transport business.
The heart-rending yet inspiring story of how she was suffering with her old vehicle to fend for her children went viral after being aired on a local TV station. But in a heartwarming gesture that underscores the company's commitment to empowering women and local businesses, MTN Uganda decided to hand over the new vehicle to Ampurire.
The handover ceremony took place at her workplace in Kitoro, Entebbe, with MTN Uganda’s Chief Executive Officer, Sylvia Mulinge, presenting the car keys to Ampurire.
Despite her dedication and the critical role her business plays in supporting her family, Ampurire’s vehicle, registration number UAD 085B, which she purchased on an installment basis for UGX3.5 million, had fallen into a state of utter disrepair, making it increasingly difficult and dangerous for her to put food on her family’s table.
Speaking at the handover, Mulinge, said; “At MTN Uganda, we believe in the power of community and the importance of uplifting each other. Night Ampurire’s story is a powerful reminder of the determination and resilience that define our people.”
“We are both honored and proud to support her journey and hope that this new pickup truck will help her expand her business and ensure her safety, and that of other road users as she continues to provide for her family and serve both her community and clientele better.”
The vehicle, valued at more than UGX100 million, came with a baby car seat, a full tank of fuel and comprehensive motor-insurance.
In line with the company’s slogan, "Together we are unstoppable,” MTN Uganda’s gesture was described as a testament to the belief that every hustle deserves recognition and assistance.
Ampurire expressed her gratitude, saying, “This is a dream come true for me and my family. MTN Uganda has not only given me a new vehicle but also the hope and strength to keep pushing forward. I am deeply thankful for their support, and I am excited about what the future holds for my business.”
Mulinge further commended the transformative power of the media saying the partnership between media and community is vital in driving the positive impact we all strive for and it goes to show that indeed, together we are unstoppable.
She added that MTN Uganda remains committed to supporting the growth and development of local businesses across the country, recognizing that small and medium enterprises are crucial to the nation’s economic prosperity.
As Uganda races to comply with the European Union's new sustainability regulations, a major financial commitment, the Agricultural Business Initiative (aBi) has pledged $4.3 million (about UGX16 billion) to support the registration of coffee farmers, a crucial step in meeting the European Union's Regulation for Deforestation-free Products (EUDR).
The stringent regulations, effective December 30, 2024, mandates that exporters provide documentation ensuring their supply chains are free from deforestation-linked products.
The EU, which consumers almost 70% of Uganda’s coffee exports, established the regulations in 2020 as a “legal framework to halt and reverse EU-driven global deforestation” aimed at reducing Europe’s contribution to greenhouse gas emissions and global biodiversity loss.
The traceability system can enable a coffee consumer at a coffee shop say in Rome to trace the coffee in her cup to the garden where it was grown and make a decision whether to consume or not.
The importers within the EU would face sanctions if they import agricultural products that don’t carry a traceability certificate.
Speaking at a breakfast meeting in Kampala, Moses Nyabila, CEO of aBi Development, described the grant as “catalytic support.”
He said the aBi Board approved UGX16 billion towards awareness creation, setting up a coordination unit, as well as making an initial down payment for the Traceability System, which is designed to register approximately one million coffee farmers by the end of 2024, out of an estimated 1.8 million.
The meeting, which was organized by the Uganda Coffee Development Authority (UCDA), aimed at updating stakeholders about Uganda’s progress towards implementing its National Action Plan on EUDR. The EU’s new regulation necessitates rigorous documentation from exporters of agricultural commodities like coffee and cocoa, ensuring that their products do not contribute to deforestation.
Dr. Gerald Kyalo, the Director of Development Services at UCDA, highlighted the government's dedication to meeting EUDR requirements. “The Government is committed to ensuring that Uganda continues to access the EU market by complying with EUDR standards,” Dr. Kyalo said. He applauded aBi and other development partners for their substantial contributions.
The Ugandan government has also committed about UGX14 billion in the 2024/25 budget, specifically for the registration and support of coffee farmers. This allocation is expected to bolster efforts to enhance the traceability and sustainability of Uganda’s coffee exports.
Brazil, Ethiopia and Vietnam, which are Uganda’s top competitors in global coffee production, are already in advanced stages of setting up their traceability systems.
The financial support is therefore critical as it would ensure that Uganda’s coffee sector can meet EUDR requirements, maintaining access to the EU market, which consumes over 60% of Uganda’s coffee exports. Compliance would also enhance Uganda’s global reputation for sustainability.
The grant would also fund awareness campaigns and training programs, helping farmers adopt sustainable practices that boost both productivity and quality. This would ensure better traceability and higher prices for quality coffee.
The establishment of a robust Traceability System and a coordination unit would be critical for monitoring and verifying compliance. This infrastructure would reduce post-harvest losses and streamline the coffee value chain.
The EU believes that by adhering to EUDR standards, the global coffee industry would contribute to environmental conservation efforts by reducing deforestation and promoting biodiversity in line with global sustainability goals.
State Minister for Investment, Evelyne Anite, has commended Ranches Finest for its sustained production and export of high- quality beef products from Uganda to the global market.
While on a tour of the company’s factory at Kawempe near Kampala on Thursday, Anite said this is an indication that Uganda, historically known for exporting raw agricultural produce, has now shifted its focus towards exporting value-added products.
She noted that the company’s innovative approach to processing meat has allowed Uganda to achieve new milestones in food exportation.
"This achievement is remarkable. We are no longer just exporting raw beef, but now we are exporting high-quality, value-added products," Anite stated.
She added that the fulfillment of a promise made by President Yoweri Museveni to former UK Prime Minister Boris Johnson, to place Ugandan beef on British tables, is within reach. "Though we haven’t fully met that demand yet, I am optimistic that with Ranches Finest leading the way, we will soon fulfill that promise," she said.
It should be remembered that in 2020, then British Prime Minister Boris Johnson said Ugandan beef would have an honoured place on the tables of post-Brexit Britain, during the UK-Africa Investment Summit. However, Uganda has since failed to meet the demand of the United Kingdom.
Ranches Finest has established a state-of-the-art factory that integrates backward into ranching, ensuring both traceability and quality control. This approach has brought new energy into the supply chain and provided direct employment to 195 people, with over 2,000 indirect jobs being created for Ugandans.
Anite said the ranch’s close collaboration with local farmers ensures fair prices and security for their products, eliminating exploitation.
“The company’s success is also evident in its expanding export footprint. Their beef and poultry products have found markets in the Democratic Republic of Congo and South Sudan, with plans to extend their reach to Egypt and the UAE. Crucially, Ranches Finest products are halal-certified, which opens doors to lucrative markets in Muslim-majority countries,” she said.
She also stressed the government's commitment to helping businesses, especially in the beef sector thrive by ensuring product quality through agencies like the Uganda National Bureau of Standards (UNBS). Anite also noted the challenges in securing halal certification for exports, but through collaboration with Muslim communities, she said the process has been streamlined for Uganda’s future exporters.
John Rujoki Musinguzi, Commissioner General of the Uganda Revenue Authority (URA), attributed Uganda’s recent economic resilience and revenue growth to transformative efforts, emphasizing the integrity and commitment shown by institutions such as Ranches Finest.
He encouraged other businesses and institutions, including the church, to take part in Uganda’s journey towards greater accountability and tax education, noting the role of civic responsibility in national development.
Colin Mayanja, Ranches Finest’s CEO, assured the public and local farmers that there is growing demand for Uganda’s agricultural products, especially in international markets.
Mayanja stressed the importance of building a reliable value chain and ensuring that farmers receive timely payments for their products, urging them to take advantage of funding opportunities like the Parish Development Model to invest in high-demand ventures such as poultry, goats, and cattle.
"The demand is real, the market is growing, and we are here to guarantee it," he declared, adding that the need for continued collaboration between the government and private sector, especially on incentives to grow and position Ugandan businesses as a key player in the EAC region and the continent.
The company produces premium quality meat cuts, pre-packed branded processed meats for retail, premium sausage ranges, and traditional smoked sausages for both the local market and export.
The Ugandan government is accelerating negotiations with Alpha MBM Investments of the United Arab Emirates to finalize a landmark deal to build a 60,000 barrels-per-day oil refinery in western Uganda, seen as a crucial step in Uganda’s ambitions to become Africa’s newest oil producer.
Speaking at a press briefing in Kampala on Wednesday, Ruth Nankabirwa, the Energy and Mineral Development Minister, expressed optimism about the ongoing discussions.
“Negotiations for the key commercial agreements, including implementation, crude oil supply, and shareholders agreements with Alpha MBM, are ongoing,” she said, adding that the Attorney General’s office and the Ministry are playing pivotal roles at the negotiation table.
“Once these agreements are finalized, the consortium is expected to promptly and swiftly begin the project implementation,” she added.
The negotiations with Alpha MBM began in January 2024 after Uganda abruptly ended talks with a consortium that included the U.S. firm Baker Hughes.
The decision was driven by frustrations over delays in securing the necessary funding for the refinery project. Initially, the government had aimed to conclude the deal by June 2024, but the complexities of the negotiations have extended the timeline.
The Emirates Prince Sheikh Mohammed bin Juma Al Maktoum, whose personal net worth is said to be about $16 billion, heads the Alpha MBM Investments, which was endorsed by the Government of Uganda to be the lead partner in the country’s $4.5 billion oil refinery project.
Nankabirwa highlighted the significance of the refinery project for Uganda’s economic future, noting that increased oil production will drive economic growth and generate substantial national revenue.
The refinery is also expected to reduce Uganda’s dependence on expensive imported refined products, ultimately lowering the costs of petrol, diesel, and other fuels.
A key concern in the negotiations has been assurance of a reliable crude oil supply to the refinery. Nankabirwa made a pointed reference to the challenges faced by Nigeria’s Dangote Refinery, which has struggled to secure adequate crude oil from domestic production. She stressed that Uganda is determined to avoid similar pitfalls, ensuring that the Alpha MBM consortium is confident in the sustainability of the crude supply.
She said the previous consortium, the Albertine Graben Energy Consortium, which included American and Italian firms, failed to raise funds from U.S. stock markets, largely due to the global shift away from fossil fuels. This setback underscored the need for a more reliable financial model, which Uganda hopes to find in its partnership with Alpha MBM.
The $4.5 billion refinery project is not only critical for Uganda’s oil sector but also seen as the cornerstone of the country’s Energy Transition agenda, producing Liquefied Petroleum Gas (LPG), a critical component of Uganda’s `clean cooking’ initiative.
Also crucial to the oil production phase ahead of the 2025 target, is the completion of the East African Crude Oil Pipeline (EACOP) to evacuate the bulk of the crude oil for export through the Tanzanian port of Tanga on the Indian Ocean coast.
As negotiations near conclusion, the Government is keen to synchronize activities with Alpha MBM to expedite the refinery’s construction, which is expected to supply finished petroleum products such LPG, petrol and diesel both for local consumption and export to the East African region.
“We will synchronize the program so that we handle certain things simultaneously,” Nankabirwa stated, adding that the consortium has already promised to conclude the final investment decision as soon as possible.
The discovery of crude oil holds the potential to transform various aspects of Uganda's eco-nomic landscape, including providing job opportunities and revenue to fund infrastructure projects, social programs, and other developmental needs.
Uganda Breweries Limited (UBL) has reported a 12% net sales growth in the last financial year, driven by the success of premium beer brands like Guinness and Uganda Waragi.
Speaking at the company's annual Media Day event at their premises at Luzira, Andrew Kilonzo, the UBL Managing Director, attributed the company's growth to its strategic focus on premium offerings and a commitment to sustainable practices.
"We have registered this growth while being mindful of our impact on the environment and the people in our value chain. We have partnered with the government to support poverty eradication through the modernization of agriculture and have invested over UGX 32 billion in farming communities and supply value chains to source raw materials locally for our production processes," said Kilonzo.
He added that one of UBL's most notable investments last year was the construction of a biomass steam plant, a project that has reduced the company's carbon emissions by 92%.
He said that the plant, powered by locally sourced biomass materials, is a testament to their dedication to sustainable manufacturing and supporting local communities.
"As part of our Spirit of Progress agenda, we want our business to be a positive contributor to the community. We're aware that climate change is a critical issue, which is why we have made significant investments in our mission to be carbon neutral by 2030," Kilonzo added.
Emmy Hashakimana, UBL's Commercial Director, emphasized the company's commitment to promoting responsible consumption of its products. He highlighted UBL's efforts in educating the public about the dangers of underage drinking, binge drinking, and drink driving, stressing the importance of moderation.
"We have made significant investments in reaching out to the masses with messages aimed at changing attitudes towards harmful drinking behaviours. UBL is using its brands to reinforce the importance of moderation whenever people interact with our products," Hashakimana said.
Commenting on the recent throwing out of the controversial Alcohol Control Bill by Parliament, Kilonzo expressed UBL's readiness to adapt to regulatory changes while continuing to operate responsibly.
"We are already a heavily regulated industry, so for us, it's business as usual. We will continue our journey to ensure our products are available and consumed responsibly, and we will remain compliant as regulations evolve," he stated.
Kilonzo also stressed the need to address the issue of illicit, unregulated, and informal alcohol. He expressed optimism that the conversation initiated by the Alcohol Control Bill would continue, as there are still opportunities to tackle the challenges posed by these unregulated products.
"We are committed to supporting actions that address the informal and illicit alcohol market, as these products pose risks to consumers and regulated players alike. We are confident in competing in a level playing field and believe that existing laws can address some of the issues identified, but there is still room to improve the regulation of unregulated drinks in our industry," Kilonzo concluded.
Uganda's coffee exports have surged to new heights, signaling a robust boost to the nation’s economy and a promising future for farmers.
According to the Uganda Coffee Development Authority (UCDA) report for July 2024, Uganda exported more than 821,500 bags of coffee, bringing in US$ 210.48 million, indicating an increase of 26% in volume and 98% rise in value compared to the same period in 2023.
UCDA further shows that Europe remains the dominant market for Ugandan coffee, accounting for 72% of total exports, up from 69% in June 2024.
“Europe’s increasing share of Uganda’s coffee exports reflects a growing appreciation for the high-quality beans produced by Ugandan farmers,” said Emanuel Iyamulyemye, the UCDA Executive Director. This shift highlights Europe's expanding preference for Ugandan coffee, which is celebrated for its distinctive flavors and superior quality.
Italy continues to reaffirm its position as the leading importer of Ugandan coffee, taking in almost 41% of Uganda’s coffee exports in July 2024, which translates to to more than 334,000 bags. Italy’s continued dominance as the top destination for our coffee underscores the exceptional quality and global appeal of our beans, Iyamulyemye added.
Germany follows as the second-largest importer, receiving almost 16% of the coffee exports (about 129,000 bags).
The UCDA attributed the dramatic rise in coffee export values to several factors, including favorable global market conditions, improved coffee quality and supply side challenges in South America.
According to the UCDA report, the value of coffee exports surged due to high global coffee prices driven by adverse weather conditions in Brazil and Vietnam. This has led to anticipated supply deficits for the 2024/25 period. These conditions have created a lucrative environment for Uganda’s coffee, enhancing its competitiveness on the world stage.
The economic ramifications for Uganda are profound. The substantial revenue from coffee exports bolsters the nation’s trade balance and supports foreign exchange reserves, contributing to economic stability.
Additionally, this revenue stimulates growth in related sectors such as transportation, processing, and marketing, further amplifying the economic impact.
For Ugandan farmers, the benefits are equally significant. Higher coffee prices and increased export volumes mean better incomes, enabling them to invest in improved farming practices and sustainable agriculture.
“The surge in coffee exports not only improves our livelihoods but also allows us to enhance the quality and yield of our coffee,” a local farmer told this publication. This positive feedback loop strengthens the coffee industry and contributes to the overall economic well-being of Uganda.
The rise in Uganda’s coffee exports represents a vibrant sector poised for continued growth. With Europe’s expanding market share and the substantial increase in export values, Uganda is solidifying its role as a key player in the global coffee arena.
This success is not only good for the national economy but also a lifeline for countless Ugandan farmers, underscoring the critical importance of the coffee industry to the country’s economic prosperity.
The coffee exports performance trend in the first half of the year points to the possibility that the country would hit its export target for the year.
For 2024, the UCDA did set a target to export approximately nine million 60-kilogram bags of coffee. This ambitious goal reflects Uganda's effort to strengthen its position in the global coffee market and improve its economic standing through increased coffee production and export.
Stanbic Uganda Holdings Limited has announced a significant improvement in its financial performance, with total assets reaching UGX9.7 trillion, a 3.8% increase from UGX9.4 trillion the previous year.
According to the company’s income statement, which was published today covering the first half of 2024, the company registered a 8.1% growth in revenue compared to the previous year. Profit after tax increased by 17.6% to more than UGX235.5 billion, up from UGX200 billion, driven by a 17.2% rise in non-interest revenue and a 2.1% growth in net interest income.
In addition, the financial statement indicated that the Board has approved an interim dividend of UGX2.73 per share, totaling UGX140 billion for the period ended June 30, 2024, reflecting Stanbic’s commitment to delivering value to its shareholders. In July 2023, shareholders were paid an interim dividend worth UGX125 billion and a final dividend of UGX3.03 per ordinary share totaling UGX155 billion.
The notable growth reinforces the bank's position as a key player in Uganda's economic development, particularly in funding major infrastructure and development projects.
Francis Karuhanga, CEO of Stanbic Uganda Holdings Ltd (SUHL), expressed confidence in the bank's ability to support economic growth, attributing the strong results to the bank's diversified business model and a steadfast focus on innovation and risk management.
"We have posted strong results on both the income statement and balance sheet, underpinned by our diversified business model and a strong focus on providing innovative solutions to our clients. Our bank subsidiary continues to be the anchor of our performance, as our beyond-bank subsidiaries gain momentum on their growth trajectory," Karuhanga stated.
Despite a challenging operating environment characterized by rising inflation and increasing lending rates, Stanbic has managed to maintain a strong financial position. Inflation rose to 3.9% by June 2024, up from 2.6% in December 2023, while the Central Bank Rate (CBR) increased to 10.25% from 9.5% over the same period.
Regardless of these challenges, Stanbic’s customer loan book grew by 9.5%, representing over 21% of the market share, while its off-balance sheet book surged by 17.5% to UGX2.2 trillion, maintaining its market dominance with over 40% share.
"Our leadership in key sectors such as construction, energy, health, and trade demonstrates our commitment as a key enabler of growth in our economy," said Karuhanga.
He said the company has placed a strong emphasis on supporting the growth of small and medium enterprises (SMEs), recognizing their critical role in Uganda's economy. SMEs contribute 70% of the country's manufacturing output and are responsible for creating 90% of new jobs.
"Our deliberate focus on the SME segment is part of our strategy to drive economic growth and create jobs. We believe in empowering this sector to unlock its full potential," Karuhanga added.
Central to Stanbic's growth strategy is the continuous improvement of client experience through digital innovation, Karuhanga said, adding that the bank's low-cost payment solution, Flexipay, now boasts over 900,000 clients and continues to grow in both transaction volume and value. This digital shift has significantly reduced traffic to physical branches, allowing customers to bank conveniently from anywhere, at any time.
"Our investment in digitizing services not only improves customer experience but also enhances our operational efficiency, ultimately reducing our costs to serve," he noted.
With its robust financial performance and strategic focus on innovation and customer satisfaction, Karuhanga said Stanbic Bank is well-positioned to continue its pivotal role in driving Uganda’s economic development.
"We will continue to invest in the communities where we operate and support the economy’s growth. Our transparent pricing and commitment to low prime lending rates will remain a priority," Karuhanga said.
The Eastern Africa Power Pool (EAPP), an intergovernmental organization that was established to promote and coordinate the development of a regional power grid interconnection and cross-border electricity trade in Eastern Africa, is set to operationalize a competitive regional power market next year, a move that is poised to significantly reduce energy poverty across the Eastern African region.
This ambitious plan aims to harness surplus electricity from countries with excess production and distribute it to nations facing energy deficits, thereby enhancing energy access and reliability across the region.
Founded in 2005 under the auspices of the Common Market for Eastern and Southern Africa (COMESA), the pool currently comprises 13 member countries including; Burundi, Djibouti, Democratic Republic of Congo (DRC), Rwanda, Egypt, Ethiopia, Kenya, Sudan, Tanzania, Uganda, and Libya.
Recently, South Sudan and Somalia joined the pool, and there is a possibility that Eritrea may also become a member.
During the 19th Council of Energy Ministers’ meeting held in Kampala this week, the plan for the operationalization of the marketing and trading of units was endorsed.
Ruth Nankabirwa, Uganda’s Minister of Energy and Mineral Development, who is also the current chairperson of EAPP, emphasized the importance of leveraging existing infrastructure to advance the regional trade initiative.
“We will embark on the available electricity transmission infrastructures to advance EAPP regional trade,” she said.
James Wahogo, the General Secretary of EAPP, highlighted the strategic importance of this initiative during a recent interview. “We are working towards the operationalization of a competitive market next year, and this will be done by market and trade units within the block,” he stated.
The competitive market would bring together electricity transmission and distribution companies from each member State as market participants, creating a dynamic platform for cross-border power trade.
The upcoming market would rely on power purchase agreements (PPAs) to determine pricing, ensuring transparency and fairness in transactions.
Uganda currently exports a combined total of about 150 megawatt hours (MWh) to neighbouring countries including Rwanda, Tanzania and Kenya but is keen to raise the amount this following the completion of the 650MW Karuma Power Dam.
Wahogo explained; “Countries with a surplus of electricity can offer that electricity for sale to EAPP member States,” he added. This mechanism would allow countries like Ethiopia, with abundant hydroelectric power, to supply electricity to neighbouring countries facing shortages, thereby fostering regional energy security and sustainability.
The impact of this initiative on energy poverty cannot be overstated. According to the World Bank, over 600 million people in Africa still lack access to electricity, with Eastern Africa accounting for a significant portion of this number.
By facilitating the transfer of surplus electricity from energy-rich countries to those in need, the EAPP's regional power trade is poised to close this gap, bringing reliable electricity to millions of households and businesses across the region.
Moreover, the EAPP's approach aligns with global efforts to promote sustainable energy for all. The United Nations' Sustainable Development Goal 7 (SDG7) aims to ensure access to affordable, reliable, sustainable, and modern energy for all by 2030. The EAPP’s regional power trade initiative is a significant step toward achieving this goal in Eastern Africa.
The EAPP has been hailed as a game-changer in regard to promoting regional coopera-tion in the energy sector, which is essential for economic development, energy security, and sustainable growth in Eastern Africa.
MTN Uganda and MTN MoMo Uganda Ltd, through the MTN Uganda Foundation, have made a donation of relief items valued at UGX100 million to support 200 families affected by the Kiteezi garbage landfill landslide in Kasangati Town Council, Wakiso District.
“Our hope is that these provisions would offer some comfort and support to the affected families during this challenging time,” said MTN Uganda CEO Sylvia Mulinge at the handover ceremony at MTN headquarters in Kampala yesterday.
“We believe that everyone deserves the benefits of a modern life, including access to essential resources and a good livelihood.”
The company is partnering with the Uganda Red Cross Society and Office of the Prime Minister to distribute relief kits equipped with essential household items that include blankets, jerrycans, buckets, mosquito nets, mats, tarpaulins, nylon rope, plates, cups, serving ladles, forks, spoons, knives, washing soap, saucepans, and water purification tablets.
Latest updates from the Uganda Red Cross Society indicate that more than 30 people have lost their lives, dozens hopitalised with others still missing and approximately 600-700 individuals affected following the August 10 disaster.
Robert Kwesiga, the Secretary General of Uganda Red Cross Society, commended MTN for always coming through to support the disaster-stricken families whenever an emergency occurs.
“We have always seen MTN come through to support, and in fact, they are always the first to respond whenever we have disasters in the country. I have seen them in Kisoro, Bududa, Mbale, Bunambutye, Kasese, Northern Uganda, Ntoroko, Kiryandongo, and they have responded to a number of emergencies. The most recent COVID-19 that ravaged the country and everywhere in the world, MTN didn’t leave Ugandans to suffer alone. We have partnered in so many ways and I greatly appreciate you,” he said.
Pamela Komujuni, Senior Disaster Management Officer in the Office of the Prime Minister said; “Through the MTN Foundation, we have seen many lives touched.
The Government of Uganda through the Office of the Prime Minister works closely with the Uganda Red Cross to respond to disasters of this nature, like the case in Kiteezi.
“Seeing corporate entities such as MTN come through for the victims is a sign that private sector is supportive of humanitarian causes. We thank you and pray that others can emulate your example, so that Ugandans can come through to support fellow Ugandans who are distressed by the incident in Kiteezi. The Government has done something, but we can do more with your support,” she added.
Mulinge reaffirmed MTN Uganda’s commitment to continue standing by the Ugandan people, working alongside its partners to deliver relief aid, foster recovery, and build resilience.
Apart from MTN, several other companies and individual well-wishers have come out to offer support to the hundreds of the desperate victims who are currently homeless.
"I can’t believe this is happening! We have computers now!" exclaimed Aisha Nakalema, a student at Bishop Dunstan Nsubuga Memorial School on Bugala Island, as we handed over 20 computers with free internet access to the institution. This was part of our 21 Days of Y’ello Care campaign, an annual staff voluntarism initiative held every June to give back to the communities that have supported MTN for years.
"Thank you for caring about us," she said. "This means a lot. I now feel I can do anything, even become a CEO someday." Aisha’s words capture the transformative power of technology in education. Her gratitude and newfound hope highlight the profound impact that Information and Communication Technology (ICT) can have on young learners, particularly in underserved areas.
This year’s campaign, extended to 30 days to mark MTN Group’s 30th anniversary, was themed "Learn Today, Lead Tomorrow," focusing on delivering essential digital learning resources, reliable internet access, and engaging educational platforms to students and educators in underserved areas. From Kampala to Kalangala and Katakwi Districts, we interacted with young learners, listening to their dreams and aspirations for a better future.
Uganda has one of the youngest populations in the world, with more than three-quarters under the age of 30. In a decade, this youthful population would be seeking opportunities, putting immense pressure on the government for jobs and social services. The Uganda Bureau of Statistics (UBOS) indicates that the youth unemployment rate is already high at 17%, surpassing the national average of 11.7%, with female youths disproportionately affected. This underscores the urgent need to equip our young people with skills to thrive in this competitive digital era.
A recent survey by the Ministry of Education and Sports revealed that 97% of individuals had not used any computing device in the previous three months, and only 1.3% owned personal computers or laptops. Additionally, 90% had not used the internet for any purpose in the previous three months, with the majority citing lack of knowledge or skills as the biggest barrier.
These statistics paint a stark picture of the digital divide facing our country. The lack of digital skills and access to technology is not just a barrier to individual progress but also a significant hindrance to national development. The future economy will be driven by technology and digital innovation, and our youth must be prepared to participate in and contribute to this evolving landscape.
The urgency of equipping our young people with digital skills from an early age cannot be overstated. Digital literacy would enable them to develop solutions that address societal needs and create jobs aligned with the digital era. Failure to address this would deepen threads of inequality, diminish opportunities, and have lifelong social, economic, and political consequences for our young population.
To address this challenge, several strategies are essential. Digital skills development requires devices and connectivity. Schools in rural and remote areas must be equipped with the necessary technology to provide students with hands-on experience. I commend the Uganda Communications Commission (UCC) for their outstanding work in setting up various ICT infrastructure projects, including schools in rural and remote areas, with the help of the Universal Service and Access Fund. Additionally, the government's initiatives, such as the Digital Transformation Roadmap and the Digital Vision 2040, have been instrumental in guiding industry growth.
There is also a need to update curricula and integrate digital technology across subjects for practical digital skills development. Traditional education models need to evolve to incorporate digital literacy as a core component. Emphasizing hands-on, task-based learning will ensure that students gain the necessary skills to thrive in a digital economy. For instance, incorporating coding, data analysis, and digital content creation into the curriculum can provide students with a strong foundation in digital literacy.
MTN's commitment to bridging the digital divide is exemplified by the MTN ACE (Access, Connectivity, and Education) Program, which aims to provide schools in underserved areas with access to modern educational tools and resources. We have provided more than 100 computers to five schools, including those with disabled students, and trained over 1,000 students in digital skills in the last two years. We look forward to increasing the tech-savvy population riding on this youthful demographic because they represent the future.
MTN is also advocating for increased mobile phone penetration across Uganda. By promoting the affordability and accessibility of mobile phones, MTN Uganda is helping to bridge the communication gap and provide more Ugandans with access to digital services. Mobile phones serve as essential tools for education, business, and personal development, and MTN's efforts to expand their reach are crucial in driving digital literacy and inclusion.
It is therefore prudent that all stakeholders – the private sector, civil society organizations, and the government – join hands to put all this in place.
Public-private partnerships can mobilize resources, share expertise, and create innovative solutions to bridge the digital divide. Private sector entities can sponsor technology in schools, provide internships, and offer mentorship programs to students, while NGOs can raise awareness, advocate for good policies, and support community-based digital literacy programs.
Let us all join hands and invest in digital literacy to secure a prosperous future for our youthful population. The success of our youth would guarantee the success of our nation.
Sylvia Mulinge is the CEO, MTN Uganda
MTN Uganda, through the MTN Foundation, has announced the launch of the second phase of the MTN Changemakers Initiative, a transformative program designed to drive positive social change across Uganda.
This new phase will see an investment of UGX500 million, dedicated to supporting 25 new projects in 20 districts in various regions including Kampala, Buganda, Bunyoro, Toro, Ankole, Kigezi, West Nile, Lango, Acholi, Karamoja, Teso, Elgon, North Bukedi, and Busoga.
The MTN Changemakers Initiative, which began in July last year, embodies MTN Uganda’s deep commitment to uplifting and empowering communities in alignment with its Ambition 2025 strategy. The initiative aims to identify and support exceptional individuals and groups making significant contributions to their communities, creating a ripple effect of progress and development.
Speaking at the launch in Kampala, Sylvia Mulinge, the MTN Uganda CEO, said they remain deeply committed to complementing government efforts and enhancing community development. “Our goal is to empower communities to realize their visions and foster collaboration for sustainable development,” she said.
H.E Lulama Lulu” Marytheresa Xingwana, a trustee at the MTN Uganda Foundation, who also doubles as South Africa High Commissioner to Uganda, said MTN Uganda is steadfast in its mission to create a positive and lasting impact into the lives of the communities in which it operates.
“Our focus is on uplifting those in need and ensuring that no community is left behind,” she said, adding that the MTN is driven by a commitment to championing the cause of the marginalized and creating opportunities for their growth and development.
She added that MTN Uganda firmly believes that every individual deserves a chance to thrive, regardless of their circumstances or background.
This latest development precedes the first phase in which MTN Foundation invested UGX500 million, benefiting 25 projects across five regions in Uganda and impacting the lives of more than 165,000 people, and making a substantial impact in critical areas such as water and sanitation, education, health, and the environment.
For example, Faces Up Uganda, a youth-based organization in Masanafu, Rubaga Division, which empowers young people with creative skills, has inspired confidence and skill-building among the youth.
St. Joseph’s Aid Society, located in Kyankwanzi District, western Uganda, supports orphaned students with education, accommodation, and food. The Change Makers initiative provided essential resources, such as beds, and addressed additional needs like new toilets, reflecting the resilience and hope of the students.
The Karamoja Youth Center, a project being implemented in collaboration with Tocau Karamoja and the Nabilatuk District authorities, is transforming a former detention facility into a dynamic youth center offering digital literacy and education.
Officials said that the MTN Foundation’s investment in the second phase would focus on expanding impact in key areas: economic empowerment, education, health, water, and the environment.
This commitment aligns with the United Nations Sustainable Development Goals (SDGs), specifically SDG 3 (Good Health and Well-being), SDG 4 (Quality Education), SDG 6 (Clean Water and Sanitation), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).
Prospective MTN changemakers can submit their application via https://www.mtn.co.ug/changemakers-application/ or submit hard copy at the MTN Uganda Services Centres countrywide.
The United Kingdom has launched an initiative aimed at revolutionizing Uganda’s cooking practices as part of an ambitious effort to transition 65% of Uganda’s population to cleaner cooking methods by 2030.
Speaking at the launch at residence in Kampala, British High Commissioner Kate Airey, said the project would revolutionize cooking by combining convenience, efficiency, and versatility enabling users at household, institutional, and business levels to prepare meals faster, safely, and in a cleaner environment.
The initiative, valued at EUR 5 million (approximately UGX 23.7 billion), aims at promoting the use of advanced technologies, such as electric pressure cookers, which offer a range of benefits including fast and efficient cooking, enhanced safety, and significant energy and cost savings.
Energy and Mineral Development Minister Ruth Nankabirwa hailed the United Kingdom for the project saying it marked a significant milestone in Uganda’s journey to overcome barriers, generate evidence, and expand the e-cooking industry.
Officials said the ambitious program focuses on three main components designed to overhaul Uganda’s cooking landscape.
First is the establishment of a Clean Cooking Unit at Uganda’s Ministry of Energy and Mineral Development, whose role would be to lead the country’s clean cooking efforts, enhance coordination among stakeholders, and attract further financing for the sector.
The second component is to provide support for Urban Clean Cooking Solutions mainly targeting urban areas, particularly in the greater Kampala Metropolitan Area, to facilitate market-driven clean cooking solutions for at least 6,000 households in informal settlements.
The program will also focus on developing scalable business models that address barriers to clean cooking access, promoting the use of suitable technologies in hard-to-reach markets.
Additionally, it will train 600 Ugandan technicians in the repair and maintenance of these appliances, develop a national standards and labelling program, and pilot electric cooking in 100 schools across the country.
The launch event also featured live cooking demonstrations, providing attendees with a hands-on experience of the new technology. Additionally, the National Renewable Energy Platform (NREP) will spearhead a behavior change campaign to accelerate e-cooking adoption across Uganda.
This outreach will include activities in schools, cultural and religious institutions, and public spaces, aiming to raise awareness and encourage widespread use of clean cooking technologies.
The new clean cooking initiative represents a significant investment in Uganda’s future, offering a path to more sustainable and efficient cooking practices.
As this project unfolds, it is expected to not only improve the quality of life for many Ugandans but also contribute to broader environmental and economic benefits.
Nankabirwa explained that the new project builds on previous support from the UK Government, which included the development of Uganda’s National e-Cooking Strategy, whose objective is to increase the adoption of electric cooking from the current 1% to 18% by 2030.
Traditionally, the majority of Ugandans use an open fire using three stones to support the cooking pot. This method is common in rural areas and involves using firewood as the fuel. Charcoal is a popular fuel source in both urban and rural areas.
Using firewood for cooking has several environmental, health, and economic effects including deforestation, air pollution and carbon emissions that cause climate change. Additionally, inhalation of smoke and particulate matter from burning firewood can cause respiratory problems such as chronic bronchitis, asthma, and other lung diseases.
The Bank of Uganda (BoU) has slashed the Central Bank Rate (CBR) by 25 basis points to 10%, a development that experts say would have significant implications for the banking sector and broader economic landscape in the country.
The Central Bank had previously raised the CBR to 10.25% in April 2024 in a bid to address inflationary pressures and stabilize the Uganda shilling, which had been under significant strain against the U.S. dollar for several months.
However, with inflation moderating and the local currency showing signs of stabilizing, the BoU has opted for a more accommodative stance, which is gradually bringing the key rate closer to the pre-pandemic level of 8.5%.
Speaking at a press briefing at the BoU headquarters on August 7, Michael Atingi-Ego, the Deputy Governor of the Bank of Uganda, noted that over the past 12 months, domestic inflation has continued to ease, with annual headline and core inflation averaging 3.2% and 3.0%, respectively, well below our medium-term policy target of 5%.
“This improvement is largely due to the diminishing impacts of global shocks such as the war in Ukraine and the COVID-19 pandemic, coupled with the tightening of monetary policy earlier this year,” he said, adding that the stability of the Uganda Shilling, which has shown a bias towards appreciation since March 2024, has been a key factor in the decision to lower the CBR.
He further noted that the recent increases in the CBR, along with strong inflows from coffee exports driven by favourable international prices, have played a significant role in stabilising the exchange rate.
Despite the overall positive inflation trend, both annual headline and core inflation edged up slightly to 4.0% in July 2024, from 3.9% and 3.8% in June, respectively.
“The increase in inflation was primarily driven by service inflation, particularly in areas such as passenger transport, accommodation, recreation, and cultural services,” Atingi-Ego explained.
The role of the Central bank in managing inflation by adjusting the central bank rate is crucial. By raising the CBR, the Central bank can increase borrowing costs, which in turn reduces consumer spending and investment, thereby tempering economic activity and managing inflationary pressures. Conversely, a reduction in the CBR can stimulate economic growth by making borrowing cheaper and encouraging investment.
Patrick Mweheire, the Regional Chief Executive of the Stanbic Bank Group, suggested that the reduction of the CBR to 10% is poised to have several positive effects on the banking sector in Uganda. Lower borrowing costs are expected to encourage more businesses and individuals to take loans, thereby stimulating economic activity.
“Lowering the CBR is a welcome development for the banking sector,” he said. “It creates an environment where businesses can access cheaper credit, which is crucial for expansion and investment. This will likely lead to an increase in loan applications and overall banking activity.”
Going forward, BoU projects that inflation would remain below the 5% target for the fiscal year 2024/25, reflecting stable demand conditions, lower imported inflation, and continued exchange rate stability.
However, Atingi-Ego warned of “persistent uncertainties around the inflation outlook, including potential geopolitical tensions, energy price hikes, and unfavorable weather patterns.”
BoU’s decision to lower the CBR reflects a balanced approach to fostering economic growth while maintaining vigilance over inflationary pressures. As the country navigates the complexities of the global economic landscape, the Central Bank's monetary policy would continue to play a pivotal role in ensuring the country’s economic stability and prosperity.
The banking sector stands to benefit significantly from this development, as it paves the way for increased lending, investment, and economic activity.
NCBA Bank, Uganda Airlines, Uganda Breweries and Wandaz Products are some of the top corporate entities that have expressed interest in sponsoring the Uganda Golf Club Ladies Open Tournament, whose aim is to promote women’s golf in Uganda, provide competitive opportunities for female golfers, and foster a sense of community and sportsmanship.
The tournament, scheduled for August 16-18, promises an exciting showcase of talent, with numerous prizes awaiting winners and participants.
Doreen Mwesigye, President of the Uganda Ladies Golf Club, expressed her heartfelt gratitude to the sponsors for their partnership, which ensures the tournament's success and continuity.
NCBA Bank Uganda has particularly made a significant contribution to the event, both financially and in-kind, totalling to UGX50 million, as part of their corporate social investment. Edgar Tusiime, the Head of Marketing and Communication at NCBA Bank.
“We appreciate the support from our fellow sponsors, including Corn B Bridges, Uganda Airlines, Uganda Breweries, and our new partners," he said.
Tusiime further highlighted NCBA Bank's commitment to the sport, stating, "As a leading bank, our commitment to golf stems from our belief in precision, strategy, and excellence—values that mirror our approach to financial services.
“At NCBA, we strive to inspire greatness by helping our customers achieve their financial goals through exceptional services that support saving, investing, and wealth growth. As the third-largest bank in East Africa, we are well-positioned to aid our clients in reaching their ambitions."
The event attracts both amateur and professional female golfers from Uganda and sometimes from neighboring countries or even internationally.
Wendy Angu'Deyo, the Lady Captain of the Uganda Ladies Golf Club, noted that this year's event marks the sixth edition of the Uganda Ladies Open. She described it as the biggest tournament to close the year, with participants from Uganda and neighboring countries like Tanzania.
"The UGC Ladies Open has grown in stature and popularity, attracting top female golfers from the region. This year's tournament is particularly special, and we are excited to welcome a diverse field of players," Angu'Deyo said.
"Our sponsors play a crucial role in the success of the UGC Ladies Open. Their support not only ensures a smooth running of the event but also provides an opportunity for the golfers to showcase their skills and for the sport to grow," Angu'Deyo added.
With a strong line-up of sponsors and a commitment to excellence, the tournament is poised to be a memorable event in Uganda's golfing history.
MTN Uganda has announced a net profit of UGX295.7 billion for the half-year ended June 2024, driven by robust growth in voice, data, and fintech services.
The development raises optimism that the company will comfortably surpass the UGX493 billion net profit the telecommunications giant made in 2023.
Company officials told journalists at a briefing today that the telecom company's voice revenues rose by 15.1% to UGX626.7 billion, while data and fintech services saw impressive increases of 28.6% and 23.5%, reaching UGX 373.3 billion and UGX 442.3 billion respectively during the same period.
Overall, MTN Uganda's service revenue surged by 20.4% to UGX 1.5 trillion, supported by a 14.6% growth in mobile subscriber numbers, which now stands at 20.7 million.
Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 22.4% to UGX 784.7 billion. In light of this performance, the company has proposed an interim dividend payout of UGX 6.6 per share, equivalent to UGX 147.8 billion, to be paid on September 20.
"MTN Uganda’s performance in the first half of the year continued on a positive trend, supported by the overall momentum in economic growth,” said MTN Uganda CEO Sylvia Mulinge.
“The Ugandan economy grew by 6.0% for the 2023/24 financial year with macro-economic indicators trending favorably in the six-month period.”
Mulinge highlighted the company's investment of UGX 219.1 billion to enhance the quality, capacity, and resilience of the MTN network, with a focus on 4G and 5G technologies. The 4G LTE population coverage increased to 87.8%, up 4.4 percentage points, while the 5G rollout extended to 538 strategic sites, achieving full coverage of the capital, Kampala.
"Our 2G and 3G population coverage also rose to 98.9% (+0.5pp) and 93.2% (+0.8pp) respectively as we extended connectivity across the country to ensure that all Ugandans enjoy the benefits of a modern connected life,” she said.
In the fintech space, Mulinge noted that MTN’s investment in the past six months was geared towards advancing the ecosystem with a focus on enhancing appreciation of its advanced services and expanding core services.
“During Q1, we addressed our customers’ credit requirements by establishing a comprehensive loan suite, Wesotinge, in partnership with five financial institutions to meet both short and long-term liquidity needs,” she said. The company also introduced a short-term credit facility, Merchant Xtra Stock, and increased the number of cashpoints for agent top-ups to reduce float gaps, resulting in a 25.2% year-on-year increase in transaction volumes to 2.0 billion.
Looking ahead, Chief Finance Officer, Andrew Bugembe reaffirmed the company’s commitment to maintaining stable EBITDA margins above 50%, and keeping capital expenditure (excluding leases) intensity at mid-teen levels.
“Leveraging on our network investment, we commit to deliver reliable and affordable voice and data services to empower our loyal customer base,” he said.
He added that to sustain their commercial momentum in the second half, they would continue to partner, innovate, and provide solutions to meet an ever-evolving market as technology advances.
Richard Yego, MTN Mobile Money Uganda CEO, the company’s fintech arm, said they would continue to focus on enhancing liquidity requirements for its merchants and agents as well as solutioning for the customers to encourage cashless transactions.
Listed on the Uganda Securities Exchange (USE), MTN Uganda has a presence in all the districts of Uganda and has evolved from a telecommunications company providing value added services to a provider of an innovative range of products and services including voice, data, digital and mobile financial services delivered through a network of approximately 120,000 mobile money agents, 200 service stores and 14 main distributors.
The vision of a modern and efficient railway network in East Africa is edging closer to reality as Uganda moves closer to the reality of its own Standard Gauge Railway (SGR) line from Malaba to Kampala.
A document seen by Business Edge indicates that cabinet last week received a comprehensive report from the Ministry of Works and Transport, detailing the progress and future outlook of the SGR project in Uganda. According to the document, this marks a significant milestone under the Northern Corridor Infrastructure Projects (NCIP) protocol - where the SGR project falls - aimed at fostering regional integration and economic growth.
The document signed by the ICT minister, Dr. Chris Baryomunsi, indicates that the country is now closer to the development of the coveted high precision railway line, following Kenya’s and Tanzania’s progress on the same front.
According to Baryomunsi, the government is closer to procuring Turkish firm Yapi Merkezi to undertake the construction of the 1,724km line from Malaba in eastern Uganda to Kampala, connecting with the Kenyan arm of the line, running from Mombasa to Malaba via Nairobi, Naivasha and Kisumu.
Founded in 1965, Yapı Merkezi, a private company, is recognized for its expertise in handling complex and large-scale railway projects, and it has established a solid reputation in both the Turkish and international construction industries.
The SGR system provides enhanced railway transport performance, safety, and efficiency, making it a popular choice for many new railway projects around the world.
Compared to the outdated Meter Gauge Railway (MGR) format, the SGR systems can generally support higher speeds due to their wider gauge, which allows for larger, more stable trains, hence faster travel times and increased efficiency in passenger and cargo transport. Also, the broader gauge allows for larger trains and heavier loads, which can accommodate more passengers or freight per train. This is beneficial for handling high volumes of traffic and improving overall capacity and safety.
Kenya has already operationalized its segment from Mombasa Port to the capital Nairobi, extending to Naivasha, and with plans to stretch it further to Kisumu and Malaba already taking good shape, according to Onesimus Kipchumba, Kenya’s cabinet secretary, Ministry of Roads and Transport.
In Uganda, the project is to be executed under an Engineering, Procurement, and Construction (EPC) turnkey contract, coupled with a finance arrangement. “The government would therefore like to assure Ugandans that the SGR project is on track, with construction set to commence once financing arrangements are finalized,” said Baryomunsi.
According to Perez Wamburu, Uganda’s SGR coordinator, over 97% of the right of way is already secured, making the project a good to go, should the final contract be signed at any moment. Wamburu says that the Memorandum of Understanding (MoU) signed last year with Yapi Merkezi is expected to expedite the construction, introduce European standards, and achieve cost savings.
“The SGR will play a crucial role in modernizing Uganda's transport infrastructure, seamlessly integrating with the meter-gauge railway to create an efficient supply and distribution network. This aligns with the broader regional transport initiative, connecting East African cities and suburbs, thereby fostering Uganda's economic growth and regional trade,” he says.
The Uganda-Kenya SGR project involves the construction of a railway line connecting the Ugandan capital, Kampala, with the Kenyan port city of Mombasa at the Indian Ocean – a distance covering of 1,700 kilometers. Additionally, the project also includes the construction of new railway stations and cargo terminals along the route, to handle both passenger services and freight operations.
In addition to cost reduction, the SGR will significantly reduce travel time between Uganda and Kenya, boosting trade and economic activities by providing a faster, more reliable transport link to the port of Mombasa.
The East African Business Council (EABC) has urged regional governments of the East African Community (EAC) to uniformly apply the EAC Common External Tariff (CET) in a bid to boost intra-EAC trade, investment, and regional value chains.
The private sector trade umbrella says the common external tariff must be uniformly applied because it is a vital component of the EAC Customs Protocol, designed to facilitate intra-trade and create a level playing field within the EAC Customs Territory by providing a uniform tariff structure for products imported from outside the EAC bloc.
A common external tariff (CET) is a uniform tariff rate applied by a group of countries in a trading bloc to imports that are sourced from countries outside the group, which helps to create a unified trade policy that simplifies and harmonizes trade regulations among member states, while also protecting local industries from external competition.
According to Simon Kaheru, the vice chairperson of the EABC, the effectiveness of the CET has been diluted by the continued use of Stays of Applications and Country-Specific Duty Remissions, which distort the market.
A ‘stay of application’ refers to a court order that temporarily halts or suspends the enforcement of a legal action or decision, while a ‘country-specific duty remission’ refers to the reduction or elimination of import duties or tariffs on goods coming from a particular country, typically as part of a trade agreement.
"There is a need for public-private dialogues and private-to-private partnerships to drive the uniform implementation of the EAC-CET to boost intra-trade," Kaheru said during a post budget webinar under the theme; ‘Disparities in the Applications of EAC-CET and Impact on EAC Businesses,’ over the weekend.
It should be noted that the EAC currently implements a four-band CET with a minimum rate of 0% for raw materials and capital goods; 10% for intermediate goods not available in the region; 25% for intermediate goods available in the region and 35% for imported finished products available in the region.
Adrian Njau, the acting Executive Director of the EABC, said this current band is aimed at promoting value addition, regional value chain integration, intra-EAC trade, and safeguarding regionally produced products against similar imports from outside the EAC. He said if effectively implemented, the maximum tariff of 35% could increase intra-EAC trade by $18.9 million and create 6,700 jobs.
“Our partner States agreed on the 35% maximum tariff after analysis showed it would increase revenue by 5.5%, boost intra-regional trade, reduce imports, promote value addition, attract foreign direct investment (FDI), and create employment opportunities,” he explained, adding that unfortunately, these benefits are undermined by the non-uniform application of the CET, adding that in the current financial, there are 1,956 tariff lines under Stays of Applications (SOAs), with Uganda leading with 901, followed by Kenya (816), Rwanda (116), Tanzania (89), and Burundi (24).
According to Donald Tindamanyire, the Principal Customs Officer, Tariffs and Valuation at the EAC Secretariat, most SOAs were on products attracting a 25% import duty, accounting for 77% of all SOAs, followed by products attracting a 35% import duty, which accounted for 25% of all SOAs. He noted that the sectors most affected by SOAs include cotton, textiles, and apparel, followed by iron and steel, and agro-processing.
Josephat Karanja, the Manager of Tax Consulting at RSM Eastern Africa, pointed out that the lack of uniform application of the CET creates an unleveled playing field, as production attracts different import duties across countries, leading to market distortions.
The webinar, which convened over 100 industry leaders and government officials from across the region, highlighted the importance of the CET in Karanja urged the EAC partner States to honor the CET, which he said was established to protect the common interests of various partner States by safeguarding specific sectors. “The annual SOAs, effective for only one year, create uncertainties for manufacturers
Other key recommendations included building productive capacities in the region, harmonizing private sector positions on the CET, protecting local industries, applying regional duty remission schemes to promote East African manufacturers, developing industrial infrastructure for priority value chains such as leather, and promoting dialogue between the private and public sectors to address emerging issues regarding the CET's implementation.
They also emphasized the need to assess the impact of the EAC-CET 2022 on Foreign Direct Investment and regional investment, to evaluate national and regional productive capacities, and to address challenges leading to the constant application of SOAs, particularly in the agro-processing, textile, and apparel sub-sectors.
“The uniform application of the EAC-CET is central to enhancing intra-EAC trade, promoting regional value chain integration, and fostering economic growth and development across the East African region,” Kaheru stressed.
The recent inauguration of the Kole-Gulu-Nebbi-Arua Transmission line by President Yoweri Kaguta Museveni marks a pivotal moment for the West Nile sub-region. This 132KV power line, worth a total investment of USD100 million (UGX 370 billion), connects the region to the national power grid for the first time since 2003.
The successful energization at the Nebbi Substation symbolizes a new era of economic opportunity and growth for the area, which has long been underserved in terms of reliable electricity supply. Since the unbundling of the Uganda Electricity Board (UEB) in 2003, the West Nile sub-region, which includes districts such as Adjumani, Arua, Koboko, Maracha, Madi-Okollo, Moyo, Nebbi, Pakwach, Terego, Yumbe, and Zombo, had never been connected to the national grid.
The West Nile Rural Electrification Company (WENRECo) was formed in 2003 by the Industrial Promotion Services (IPS), a programme of the Aga Khan Fund for Economic Development (AKFED) and was granted a concession agreement to generate, distribute, and sell electricity over an isolated grid.
The company secured a 25-year license from the Electricity Regulatory Authority (ERA) for the generation, distribution and sale of electricity in the Nile Region. The initial catchment area covered Arua and Nebbi Districts, but this has since been expanded to all districts in the West Nile Region.
The introduction of Electromaxx in 2019 to supplement power generation through the Euata thermal plant in Arua District as well as the Nyagak 1 hydropower plant, had a combined capacity of just 11.8 megawatts (8.3 MW from Euata and 3.5 MW from Nyagak 1). However, this setup was insufficient, leading to expensive power and erratic power supply as well as frequent blackouts that hampered local businesses and overall development.
The lack of connection to the national power grid had significant implications for local businesses in the West Nile sub-region. The unreliable power supply from local generators and small-scale plants severely constrained business operations, limiting growth and profitability.
Some members of the business community in Nebbi told this publication that the inconsistent electricity supply affected productivity levels. Businesses could not operate machinery consistently, leading to delays in production schedules. This was particularly detrimental for industries that require continuous power, such as food processing and cold storage facilities. The lack of reliable power also made it difficult for businesses in West Nile to compete with those in other regions that had stable power, leading to a loss of market share and opportunities.
The completion of the new Kole-Gulu-Nebbi-Arua Transmission line is expected to be a game-changer for the West Nile region.
Speaking at the launch of the power line on August 3, President Museveni highlighted the immense potential for attracting investors, particularly in the industrial sector. "There's a lot of power waiting to be used. What I would recommend is to develop an industrial park somewhere in the West Nile near the power," he suggested.
Local business owners and residents have welcomed the development, hoping it will bring more stability and opportunities.
Winfred Ogentho, a businesswoman from Nebbi district, voiced both her gratitude and concerns, saying; "I appreciate the government's efforts, but I implore them to stick to providing cheap power and ensure equal distribution across the whole district." This sentiment reflects the community's desire for affordable and reliable electricity, which is crucial for economic activities and improving living standards.
The project’s financial aspects were outlined by Irene Batebe, the Permanent Secretary of the Ministry of Energy and Mineral Development. She said the entire project cost USD100 million, with financial support from the World Bank. This substantial investment, she said, underscores the government's commitment to enhancing infrastructure and promoting economic development.
Ruth Nankabirwa, the Minister of Energy and Mineral Development, reiterated the government’s dedication to implementing Uganda's Vision 2040 and the National Development Plan III. The completion of various power transmission projects, including this one, is expected to ensure nationwide access to the national grid, paving the way for sustained economic and social development, she added.
A day later, Vice President Jessica Alupo also commissioned the Arua substation; part of the 289 km Kole-Gulu - Nebbi - Arua Transmission Line Project with over 897 towers.
The transmission line will evacuate electricity from Karuma Dam, Agago/Achwa, Nyagak I, and Nyagak III hydropower plants to Arua, helping to meet the city’s energy demand and fostering investment and industrialization across the region.
With more investment in power infrastructure, the future looks promising for increased industrialization, improved living standards, and sustainable development across the country, especially in underdeveloped parts of the country such as the West Nile region.
High cabbage, fish and Irish potatoes prices were the primary drivers of the 4% annual inflation in July, the Uganda Bureau of Statistics (UBOS) has indicated as per the July Consumer Price Index (CPI).
Speaking at a press briefing on July 31, UBOS statisticians noted that these foodstuffs had significantly contributed to the overall increase in food prices, leading to the rise in inflation from 3.9% in June to 4% in July, the highest in the past 12 months.
According to the UBOS report for July, the price of cabbage surged dramatically from 14.4% to 32.5% over the past 12 months. The cost per kilogram of cabbage ranged between UGX 11,101 and UGX 25,903 in July 2024, marking a substantial rise from the UGX 8,500 to UGX 14,000 range in July 2023. This increase represents an approximate 64.5% spike, mainly driven by inflationary pressures and supply chain disruptions.
Irish potatoes also saw a notable price hike, climbing from UGX 1,657 per kilogram in July 2023 to UGX 1,900 in July 2024. This 14.6% increase reflects the growing cost of agricultural production and distribution challenges.
Meanwhile, the price of fresh tilapia, a popular food in many Ugandan households, increased from UGX13,128 per kilogram in July 2023 to UGX 14,360 in July 2024, representing a 9.4% rise.
This increase was partly attributed to seasonal variations and stricter enforcement measures at fishing landing sites.
Samuel Echoku, the head of the Department of Macroeconomic Statistics at UBOS, noted that the Annual Headline Inflation for the year ending July 2024 increased to 4.0%, up from 3.9% in June 2024.
"We have not seen this level of inflation for the past 12 months," Echoku stated. "This indicates that commodity prices are rising, and it is crucial for government planners to consider this trend in their policy-making."
The surge in food prices, particularly for staples like cabbage, tilapia, and Irish potatoes, underscores the broader economic challenges facing Uganda.
The combination of increased demand, production costs, and supply chain issues has put pressure on household budgets, with significant implications for food security and economic stability.
This trend is in line with the Bank of Uganda’s forecasts, which indicates that inflation is projected to rise above the medium-term target of 5 per cent by the first quarter of the 2024/25 financial year and stay above 5 per cent throughout 2025.
As the government and other stakeholders work to address these challenges, monitoring inflation trends and implementing effective policies will be critical to mitigating their impact on the population.
As Uganda continues to navigate these economic dynamics, the latest data serves as a reminder of the importance of strategic planning and intervention to support both consumers and producers in the face of a tight economic environment.
The Directorate of Citizenship and Immigration Control (DCIC) has reported a substantial increase in revenue from visa visa fees for the 2023/2024 fiscal year, totalling over UGX80 billion, up from UGX45 billion in the previous year.
Simon Peter Mundeyi, the Ministry of Internal Affairs spokesperson, told journalists at a press briefing that the growth in revenue is attributed to the rising demand for their services.
"This remarkable growth, of almost 78%, demonstrates the increasing demand for our immigration services and the confidence international visitors and expatriates have in Uganda," Mundeyi stated.
During the fiscal year, the DCIC issued a total of 266,537 visas, each costing USD50 (about UGX185,000), marking a notable rise in international arrivals and visa applications.
In addition to visas, the DCIC issued 12,970 dependent passes at a fee of USD400 (about UGX1.5 million) each. Dependent passes are typically issued to individuals coming to Uganda to live under the care of their parents, guardians, or spouses.
"We have seen an increase in the number of Ugandan women applying for dependent passes for their foreign spouses. A man comes from a foreign country to be taken care of by his Ugandan spouse. This is not a common practice in our African tradition," Mundeyi said.
The DCIC also collected UGX5 billion from student passes issued to foreign students pursuing university or secondary education in Uganda, reflecting growing confidence in Uganda's educational institutions by international students.
Special passes, issued to individuals possessing rare skills not readily available in Uganda, contributed an additional UGX5 billion. Mundeyi emphasized the strict criteria for these passes, stating: "We want to inform people in Uganda and abroad that we don’t give special passes to everybody. You must have rare skills that no Ugandan possesses."
Moreover, the collection from certificates of residence amounted to UGX2.7 billion.
On the issue of East African Community (EAC) nationals, particularly Kenyans, who start businesses in Uganda without applying for work permits, Mundeyi warned that EAC citizens must obtain work permits, even though they are free of charge.
The significant revenue collected by the DCIC from various immigration services underscores the crucial role of the directorate in managing Uganda's borders and immigration processes.
As Uganda continues to attract foreign nationals for various purposes, the DCIC remains a pivotal institution in upholding immigration policies and maintaining national security.
Regional counterparts Uganda and Kenya are set to revive a long-standing plan to construct a pipeline that will enhance the transportation of fuel between the two countries. The project, initially proposed in 1995, aims to establish a pipeline from Eldoret in western Kenya to Kampala in Uganda, with potential extensions to Rwanda and Burundi.
The initiative, if successful, could significantly impact the regional energy market by providing a more stable and cost-effective supply of petroleum products.
The original proposal emerged from the Joint Coordinating Commission (JCC) and led to a Memorandum of Understanding between the two nations. A feasibility study was completed in 1999, but the project stalled for years.
But recently, Ugandan and Kenyan officials, including Minister of Energy and Mineral Development, Ruth Nankabirwa, met in Kampala and reignited interest in the project. These talks are a continuation of discussions between Presidents Yoweri Museveni and William Ruto, who, in May, urged their ministers to expedite the pipeline's development.
"We are committed to ensuring that this pipeline becomes a reality," said Minister Nankabirwa. "It is not just about securing a stable fuel supply but also about strengthening our regional cooperation and economic integration."
Currently, Uganda imports about 90% of its fuel through Kenya, amounting to an average of 2.5 billion liters of refined petroleum products annually. This import is valued at approximately 2.5 billion dollars (9.3 trillion Ugandan shillings). The reliance on Kenyan ports for fuel imports has made Uganda susceptible to logistical challenges and price fluctuations.
The proposed pipeline could alleviate these issues by providing a direct, reliable route for fuel transport, thus stabilizing supply and reducing costs.
"By constructing this pipeline, we aim to create a more efficient and reliable fuel supply chain," Nankabirwa explained. "This will reduce our dependence on Kenyan ports and mitigate the impact of price volatility."
The pipeline project also has broader regional implications. By extending the pipeline to Kigali in Rwanda and potentially Bujumbura in Burundi, the initiative could foster greater economic integration in the East African Community. Each country would be responsible for constructing and maintaining the pipeline within its borders, creating a collaborative infrastructure project that benefits multiple nations.
The timing of the pipeline's revival is significant, as Uganda has recently started importing fuel directly from the Middle East through the logistics company Vitol. This move bypasses Kenyan marketing companies, which have been partly blamed for high fuel prices in Uganda. The direct importation strategy has already shown promise in lowering costs and increasing supply stability.
"The direct imports from the Middle East have been a game-changer," Nankabirwa stated. "It has allowed us to bypass middlemen and ensure that our people receive fuel at more affordable prices."
However, the pipeline's viability is not guaranteed. Uganda and Kenya face competition from Tanzania, which offers alternative routes through its ports of Dar-es-Salaam and Tanga. The new pipeline must be cost-competitive and efficient to prevent a shift in regional trade dynamics. The ability to quickly implement and manage the pipeline will be crucial in retaining Uganda's reliance on Kenyan routes.
The proposed revival of the 30-year-old petroleum pipeline plan between Uganda and Kenya represents a significant step towards regional energy security. The collaboration between the two countries, backed by political will and strategic planning, could transform the regional fuel market.
However, the project's success will depend on effective implementation, regional cooperation, and competitive positioning against alternative routes. If successful, the pipeline could become a cornerstone of East Africa's energy infrastructure, benefiting millions across the region.
The pipeline plan could also potentially open up a new war-front with environmental activists who argue that such projects are a threat to the environment.
French energy giant TotalEnergies has signed an agreement with Scatec, a Norwegian renewable energy company, to acquire 100% of its subsidiary, SN Power.
Consequently, TotalEnergies will acquire a 28.3% stake in the 250MW Bujagali hydropower plant, which contributes more than 25% of Uganda’s peak electricity demand.
Over the last 15 years, TotalEnergies has been a key player in Uganda's non-renewable energy industry, primarily through its participation in the development of oil and gas resources. The company, together with its partners, has been involved in oil exploration and is part of the consortium developing the Kingfisher oil field and the Tilenga project in the Albertine region.
Additionally, TotalEnergies is a key player in the East African Crude Oil Pipeline (EACOP) project, intended to transport crude oil from Uganda’s oil fields to the port of Tanga in Tanzania.
However, the company is currently implementing an ambitious diversification drive into renewable energy projects globally, reflecting a broader trend in the energy industry towards more sustainable and diversified energy sources.
Patrick Pouyanné, the Chairman and CEO of TotalEnergies, said in a press release today that they were “delighted” to join the energy transition agenda in Uganda by becoming a player in hydro power.
“This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent's energy transition by bringing electricity to the people of African countries,” he said.
“In particular, we are delighted to be able to become a player in hydro power in Uganda, a country where we are also developing a major oil project. This is another example of TotalEnergies’ ability to implement its multi-energy strategy in oil-producing countries to support them in their energy transition.”
TotalEnergies is also exploring the development of solar mini-grids in Uganda, which can provide power to small communities and help bridge the energy access gap in rural areas.
The Bujagali Hydropower Station, located on the Nile River in Uganda, was officially launched in October 2012, having been developed at the cost of approximately $900 million sourced from a combination of sources, including equity contributions from private investors and loans from international financial institutions such as the World Bank and the European Investment Bank.
The Aga Khan Fund for Economic Development (AKFED) and the Government of Uganda through the Uganda Electricity Generation Company Limited (UEGCL), are some of the other shareholders in the power station.
However, President Yoweri Museveni has severally criticised the project over the high cost of electricity generated by the Bujagali Power Station, saying it is detrimental to Uganda’s economic development and energy security.
Whether nor not TotalEnergies’ involvement will lead to lower tariffs for consumers going forward remains to be seen.
However, Terje Pilskog, the CEO of Scatec, was positive that TotalEnergies would be “a strong asset owner going forward, with the ability to further develop the projects and contribute to the energy transition in Africa.”
The low enrolment and completion rates for girls in Uganda’s Technical Vocational Education and Training (TVET) programmes should be a serious concern for policy makers and implementers, according to a new report.
The report, titled, ‘Africa’s Development Dynamics 2024: Skills, Jobs and Productivity,’ was compiled by the Organization for Economic Cooperation and Development (OECD) in collaboration with the African Union Commission.
It says Uganda’s TVET end of year assessment in 2019 indicated that women comprised only 19% of the examinees.
“Young girls and women are often prevented from enrolling in and completing TVET programmes. This results from social norms that confine their role to the domestic realm, from long distances to TVET institutions and from the high cost of learning materials,” the report reads in part.
It adds; “Gender divides are highest in Uganda (where the share of male workers in skilled occupations is 13 percentage points (pp) higher than female), Kenya (11 pp) and Tanzania (11 pp).”
The report explores how African stakeholders can increase the continent’s supply of quality skills, in line with current and future demand, to support the creation of jobs and growth in productivity.
Regionally, the EAC region’s labour productivity is below the African average, even though East Africa boasts the fastest economic growth of all the continent’s regions. Over three quarters of workers are in unskilled occupations in agriculture and trade.
The report also explores how African governments, firms and educational institutions can increase the supply of quality skills, in line with current and future demand, to create jobs and increase productivity.
It notes that skill gaps vary between countries and while some African economies are diversifying, countries like Uganda are still dependent on agricultural employment, which amplifies the need for the scaling up of TVET institutions to respond to the emerging skill needs.
It recommends that as African economies diversify, workers need more soft, business and sector-specific technical skills to increase productivity and technology adoption. TVET institutions would benefit from an improved reputation and more relevant curricula, including on digital skills.
“Stronger linkages with the private sector can enhance the professionalisation of TVET trainers and help align skill supply with demand,” it says.
Quoting a recent World Bank report, the report says targeting TVET would expand the supply of digital skills and policy support to TVET institutions would contribute to meeting the demand for digital skills training opportunities.
It urges international partners to help create or improve accredited TVET courses so as to align them to the requirements of the labour market through public private alliances.
The report commends Uganda's National Development Plan (NDP III) for being heavily focused on increasing investment in ICT as one of the productive sectors in a bid to enhance livelihoods, generate employment and produce goods for export and import substitution.
However, though Uganda scores highly on digital policy and regulation, the country scores lower on skills, innovation and inclusiveness as well as infrastructure. The report recommends the strengthening of the regional integration of skills development policies to provide more efficient labour flows and skills allocation.
The experts also recommend that policies to improve digital skills development in East Africa should focus on expanding internet access and the integrating of digital skills into education to increase the supply of and demand for basic digital skills and enhancing regional integration of digital markets, infrastructure and skill provision to improve conditions for digital skills development and digital entrepreneurship.
Ugandans are set to feel the pinch as of lost jobs and business services as the Norwegian Embassy in Kampala officially closes its doors next week on July 31.
Anne Kristin Hermansen, the Ambassador of Norway to Uganda, has week formally bid her farewells to Uganda’s Minister of Foreign Affairs and confirmed that the Embassy’s services would be relocated to Dar es Salaam in Tanzania where it will also serve Rwanda and Burundi.
“The Norwegian Embassy in Dar es Salaam, Tanzania, will take over responsibilities for Uganda, with regular visits planned by the Norwegian Ambassador to engage with officials and stakeholders,” she said, adding however that they may establish an Honorary Consulate in Kampala to provide diplomatic and consular services to Ugandans.
Norway explained that the move is part of the structural reforms they are undertaking in a bid to better serve Norwegian national interests, and to increase the effectiveness of the Nordic country’s international engagement.
Over the decades, the Norway has been one of Uganda’s leading development partners. In 2022, Uganda received NOK 382 million (about USD34 million, UGX126 billion) from Norway, down from 1.4 billion NOK (USD126 million, UGX450 billion) in 2020, to support priority areas such as civil society, education, energy, refugees and human rights.
According to the country’s International Development Minister Anne Beathe Tvinnereim, they will continue to invest significantly in development cooperation with Uganda through its civil society partners and multilateral organisations, even though the embassy is closing.
“We will also maintain our engagement in promoting human rights in the country, particularly the rights of women and minorities,” she said.
While Norway insists that the closure of the embassy is based solely on overall administrative assessments related to the need for reallocation of the foreign service's resources, the effects would be felt as the embassy was employing dozens of Ugandans in its various departments, leave alone being a major consumer of Ugandan products and services.
Norway has been involved in development cooperation with Uganda for decades, supporting various sectors such as education, health, and governance.
NORAD, the Norwegian Agency for Development Cooperation, has been involved in various activities and initiatives in Uganda aimed at promoting sustainable development, reducing poverty, and supporting good governance.
However, the officials explained that their development assistance to Uganda would continue being channeled through NORAD and the Embassy in Tanzania, as well as through international NGOs.
Norway has over the decades mainly focused on sustainable management of natural resources, including forestry, water resources, and biodiversity conservation, especially efforts to promote environmental sustainability and mitigate climate change impacts.
However, like other western countries, it has often rubbed the Uganda government the wrong way by supporting programs aimed at strengthening democratic governance, promoting human rights, and giving financial support to civil society organizations and initiatives that fight corruption.
Analysts say countries may choose to close their embassies as part of a move to shift their diplomatic focus to different regions or to prioritize relations with certain countries over others based on geopolitical considerations or foreign policy objectives.
It is not yet clear whether there is any other western country that is likely to follow suit and relocate its embassy from Uganda.
The COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) Agreement officially came into force following ratification by the requisite number of member States.
The agreement required at least 14 out of the 29 countries in the region made up of the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and Southern African Development Community (SADC) to deposit their instruments of ratification before taking effect.
According to SADC Executive Secretary Elias Magosi, the milestone was achieved when Angola deposited its instrument of ratification on July 25.
The coming into force of the COMESA-EAC-SADC FTA represents a step towards deeper economic integration in Africa. It aligns with broader continental initiatives such as the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services across the continent.
The other countries that have so far ratified the agreement are Botswana, Burundi, Egypt, Eswatini, Kenya, Lesotho, Malawi, Namibia, Rwanda, South Africa, Uganda, Zambia and Zimbabwe.
These countries, he said, collectively accounted for 75 percent of the Tripartite GDP in 2022.
This development was announced during the 37th Tripartite Task Force Meeting on July 20, held on the sidelines of the 6th African Union Mid-Year Coordination Meeting in Accra, Ghana.
The meeting was attended by COMESA secretary general Chileshe Mpundu Kapwepwe, EAC secretary general Veronica Nduva and Magosi.
The TFTA aims to create an integrated market covering 29 countries in eastern and southern Africa as part of a bold move by Africa to reform internal trade.
Commonly known as the Tripartite Free Trade Area (TFTA), the integrated market was launched in June 2015 in Egypt when the agreement was signed.
The TFTA creates a combined population of some 800 million people covering half of the member states of the African Union and a gross domestic product of over US$1 trillion.
The primary goal is to create a larger market by harmonizing trade policies, reducing trade barriers such as tariffs and import quotas, and promoting the free movement of goods and services among member states. The enlarged market aims to promote the smooth movement of goods and services across borders, as well as allowing member countries to harmonise regional trade policies to promote equal competition.
The harmonisation of trade policies, and removal of non-tariff barriers and other trade barriers such as huge export and import fees would enable countries to increase their earnings, penetrate new markets and contribute towards their national development.
The COMESA-EAC-SADC FTA also aims at enhancing market access, addressing the issue of multiple memberships and furthering the objectives of cooperation, harmonisation, and coordination of policies among the three Regional Economic Communities.
The 29 Tripartite Member/Partner States represent 53% of the African Union's membership, more than 60% of continental GDP ($1.88 trillion), and a combined population of 800 million.
Experts say that the other benefit of economic integration is that it can foster political stability by promoting cooperation and interdependence among countries. Shared economic interests and integration can reduce the likelihood of political conflicts and create incentives for peaceful resolution of disputes.
The Uganda Development Bank (UDB) has announced its 2023 annual performance report, highlighting its continued role in fostering economic resilience and sustainable growth in Uganda.
According to the report, the Bank realized a net profit of UGX 49.8 billion in 2023, a 17% increase from UGX 42.6 billion in 2022.
At the release of the performance report, the Minister of Finance and Economic Development, Matia Kasaija, stated that the government will ensure the Bank advances its agenda and deepens financial inclusion for SMEs.
"The Government has played a pivotal role in significantly contributing to the country's socio-economic transformation. In 2024 and beyond, the focus will be on mobilizing adequate resources to enable UDB to continue to deliver its mandate. The Bank will also undertake initiatives aimed at accelerating productivity, import replacement, and export promotion. Additionally, the Bank will advance its holistic sustainability agenda and deepen financial inclusion for SMEs, women, and youth," he said.
In 2023, the Bank approved funding of UGX 692 billion in new loans to over 200 enterprises in 63 districts nationwide.
"These projects, upon full implementation, are expected to create 18,558 new jobs and generate an output value of UGX 11.4 trillion, from which UGX 616 billion will be generated as tax revenue to the Government, and UGX 3.34 trillion in foreign exchange earnings," the Bank's Annual Report reads in part.
UDB's net loans also expanded to UGX 1.47 trillion in 2023, reflecting robust support to the private sector. The Bank strengthened its commitment to providing affordable and patient capital, achieving significant milestones amidst economic challenges.
"The results, released during the Annual General Meeting held at the Ministry of Finance, Planning, and Economic Development, reflect a sustained effort to facilitate economic recovery," said UDB Managing Director, Patricia Ojangole.
Conversely, earnings from locally produced exports improved by 47%, from UGX 649 billion to UGX 953 billion, due to increased production, particularly in the manufacturing and agro-processing sectors. Notably, up to 66% of all raw materials utilized in enterprises funded by the Bank were locally produced during the year.
"Prioritizing social inclusion in the Bank's development agenda is fundamental in fostering a resilient, inclusive, and sustainable society where no one is left behind. To the Bank, social inclusion symbolizes diversity and social cohesion, unlocking the full potential of individuals and societal segments where everyone can fully participate, contribute, and thrive," said Ojangole.
However, despite the Bank's successes, some Ugandans feel the loan requirements remain stringent, hindering access for smaller businesses.
Herbert Sengendo and Iryn Asiimwe, both business people in Kikubo, expressed concerns that UDB targets high-end customers only, which they said was unfair since all business owners pay taxes and should benefit equally.
"First look at their requirements, they do not favour us as small business owners. Why are they targeting big business owners only? Are we not taxpayers?" they asked.
In response, Minister Kasaija advised smaller entrepreneurs to take advantage of the Parish Development Model and Emyooga, while assuring them that the Bank is formulating means of incorporating them as well.
In his conclusion, the Chairman of the Board of Directors of Uganda Development Bank, Felix Okoboi, pledged the Bank's continued commitment to catalyzing socio-economic development within the country.
"UDB remains resolute in driving inclusive economic growth through innovative financing solutions and leveraging strategic partnerships, reinforcing its role as a catalyst for sustainable development in Uganda," Okoboi said.
The world’s demand for electricity is rising at its fastest rate in years, driven by robust economic growth, intense heatwaves, and increasing uptake of technologies that run on electricity such as Electric vehicles and heat pumps. Despite the enduring impacts of the global energy crisis, growth in electricity demand has remained robust in the first half of 2024.
According to a new report by the International Energy Agency-IE, renewable energy sources continue their rapid ascent, with solar PV on course to set new records. Global electricity demand is forecast to grow by around 4% in 2024, up from 2.5% in 2023, the IEA’s Electricity Mid-Year Update finds.
This would represent the highest annual growth rate since 2007, excluding the exceptional rebounds seen in the wake of the global financial crisis and the Covid-19 pandemic.
The strong increase in global electricity consumption is set to continue into 2025, with growth around 4% again, according to the report. Renewable sources of electricity are also set to expand rapidly this year and next, with their share of global electricity supply forecast to rise from 30% in 2023 to 35% in 2025.
Keisuke Sadamori, IEA Director of Energy Markets and Security said growth in global electricity demand this year and next is set to be among the fastest in the past two decades. He said that highlights the growing role of electricity in all economies as well as the impacts of severe heatwaves.
“It’s encouraging to see clean energy’s share of the electricity mix continuing to rise, but this needs to happen at a much faster rate to meet international energy and climate goals. At the same time, it’s crucial to expand and reinforce grids to provide citizens with secure and reliable electricity supply – and to implement higher energy efficiency standards to reduce the impacts of increased cooling demand on power systems,” he said.
The amount of electricity generated by renewables worldwide in 2025 is forecast to eclipse the amount generated by coal for the first time. Solar PV alone is expected to meet roughly half of the growth in global electricity demand over 2024 and 2025 – with solar and wind combined meeting as much as three-quarters of the growth.
Despite the sharp increases in renewables, global power generation from coal is unlikely to decline this year due to the strong growth in demand, especially in China and India, according to the report. As a result, carbon dioxide (CO2) emissions from the global power sector are plateauing, with a slight increase in 2024 followed by a decline in 2025.
However, considerable uncertainties remain: Chinese hydropower production recovered strongly in the first half of 2024 from its 2023 low. If this upward trend continues in the second half of the year, it could curb coal-fired power generation and result in a slight decline in global power sector emissions in 2024.
Some of the world’s major economies are registering particularly strong increases in electricity consumption. Demand in India is expected to surge by a massive 8% this year, driven by strong economic activity and powerful heatwaves.
China is also set to see significant demand growth of more than 6%, as a result of robust activity in the services industries and various industrial sectors, including the manufacturing of clean energy technologies.
After declining in 2023 amid mild weather, electricity demand in the United States is forecast to rebound this year by 3% amid steady economic growth, rising demand for cooling and an expanding data centre sector. By contrast, the European Union will see a more modest recovery in electricity demand, with growth forecast at 1.7%, following two consecutive years of contraction amid the impacts of the energy crisis.
In many parts of the world, increasing use of air-conditioning will remain a significant driver of electricity demand. Multiple regions faced intense heatwaves in the first half of 2024, which elevated demand and put electricity systems under strain, the report finds. With the rise of artificial intelligence (AI), the electricity demand of data centres is drawing increased attention, underscoring the need for more reliable data and better stocktaking measures.
The report highlights the wide range of uncertainties concerning the electricity demand of data centres, including the pace of deployment, the diverse and expanding uses of AI, and the potential for energy efficiency improvements.
Better collection of electricity consumption data of the data centre sector will be essential to identify past developments correctly and to better understand future trends.
The IEA has been a frontrunner in studying the links between the energy sector and digitalisation. To explore the opportunities and challenges ahead, the IEA has launched a major new initiative: Energy for AI & AI for Energy. As part of this initiative, the IEA will consult with governments, industry, researchers and civil society experts. A major milestone will be the Global Conference on Energy and AI, taking place in Paris on 5 December.
Ugandans seeking employment in the oil refinery in the Albertine Graben need to be patient as the negotiations go on, Hon. Okasaai Opolot, the State Minister for Energy, has said.
The government of Uganda plans to develop 60,000 barrels of oil per day refinery at Kabaale, Buseruka Sub-County in Hoima District, as part of the government’s efforts to build a petrochemical industry from Uganda’s oil and gas resources. The refinery will produce refined petroleum products such such as petrol, diesel, jet fuel, and paraffin, in country.
In January, the Ministry of Energy in January began negotiations with Alpha MBM Investments; an investment firm from the United Arab Emirates (UAE) to build the oil refinery project. The new partner came in after Albertine Graben Energy Consortium (AGEC) dropped out of the deal in which it was to Build and operate the Greenfield Oil Refinery estimated to cost US$ 4 billion (UGX15.2 Trillion).
The Private sector group comprises YAATRA Africa, Italian Nuovo Pignone International Srl, LionWorks Group Limited from Mauritius, and Saipem p.A. While other key projects for the commercialization of oil from the fields in Kikuube, Bulisa, and Nwoya are going on, it is now evident that the refinery will not be up and running when oil production begins most likely during the fourth quarter of 2025.
While the Minister confirmed that the negotiations with the new developer were ongoing, he was hesitant to put timelines on when the investor is expected to announce the Final Investment Decision (FID) for the project. Okasaai did not also reveal what agreement is pending for an FID to be taken.
“We would like to have a refinery that is forward-looking to deliver the expectations of not only Ugandans. But the delivery of standards that fit the global trend. That is the type of refinery we would wish to have,” said Okasaai Opolot. “We have signed the various agreements, and the configuration of the refinery is being improved as we go forward.”
The final refinery configuration study was completed and approved by the government in 2019. The study was to determine the final refinery as a Residue Fluid Catalytic Cracker (RFCC) type of refinery. Details of the new configuration remain secret between the government and the new investor. Okasaai Opolot revealed that the government had intended that the refinery should be operating by 2027.
“And we have not changed that target. Give or take one year, is what we are looking forward to. The latest we expect it is 2028. The earlier the better.”
The Minister of Energy and Minerals Development, Ruth Nankabirwa in January told journalists at the Ministry’s headquarters that the negotiations of the key commercial agreements with Alpha MBM Investments were to be concluded within three months.
However, according to Okasaai, the negotiations are ongoing. “We are discussing. And the discussions will take time. We are doing a lot of configuration. A better question would be, will the information be availed to us?” Okasaai Opolot insisted when asked about the configurations and when an FID is expected.
Going by the process leading to an FID for the Lake Albert Development comprising of the Kingfisher, Tilenga, and the East African Crude Oil Pipeline (EACOP), it appears like the negotiation of the key agreements for the refinery will equally take some time. According to information obtained from Uganda National Oil Company, several agreements have to be signed before the investor gets boots on the ground.
The agreements include the Crude Suppliers Agreement intended to put the needed feedstock of 60,000 barrels of crude oil per day needed for the refinery. This agreement has to be between the crude oil owners and the refinery company. In this case, the crude oil owners are the Government of Uganda and Uganda National Oil Company, TotalEnergies E&P Uganda, and China National Offshore Oil Corporation (CNOOC) Uganda Limited. In addition, a shareholders’ Agreement will be signed by shareholders of the refinery company.
The agreements include the Crude Suppliers Agreement intended to put the needed feedstock of 60,000 barrels of crude oil per day needed for the refinery. This agreement has to be between the crude oil owners and the refinery company. In this case, the crude oil owners are the Government of Uganda and Uganda National Oil Company, TotalEnergies E&P Uganda, and China National Offshore Oil Corporation (CNOOC) Uganda Limited. In addition, a shareholders’ Agreement will be signed by shareholders of the refinery company.
The decision to have the Off-takers Agreement will be determined by potential lenders and financiers. The refinery project is planned to have a debt-to-equity ratio of 60: 40 respectively, implying that 60% of funding to the oil refinery will be a debt whereas 40% will be equity. These will also include the Host Government Agreement and the Offtakers Agreement.
As the government negotiates the agreements, expectations are high in Kyakaboga where the refinery is to be located. Young people whose homes were displaced to pave the way to the refinery, are eager to witness and participate in its construction. Dr. Opolot Okasaai said he is happy that the people in Kyakaboga are showing interest and eager to see the refinery constructed.
He affirmed that the local communities expected to benefit as per the local content requirements.
Diamond Trust Bank Uganda has entered a partnership with the National Forestry Authority to restore degraded parts of Kasonke Central Forest Reserve.
The restoration project, which involves the planting of over 20,000 indigenous trees on 34 hectares, is to cost a total of UGX89.7, hence contributing to Uganda’s Vision of 2040, which targets increasing forest cover to 24% of the total land cover like it was in 1990.
Kasonke Central Forest Reserve, known for its high biodiversity value, faces threats of degradation mainly from encroachment.
Speaking at the signing event, Godfrey Sebaana, the DTB Uganda CEO, said; “We all have a responsibility to preserve the environment for today and for the future generations.”
Ssebaana said the initiative also marks the launch of DTB’s environmental sustainability campaign, dubbed the DTB Green Initiative, whose goal is to plant at least one million trees by 2030. “It is important for us to be involved and engaged in preserving our environment so as to improve the quality of life in communities where we operate and to mitigate climate change. The best way to defend against the effects of climate change is to prevent it rather than treat the symptoms, hence ensuring a fool-proof plan for many generations to come,” Ssebaana added.
Stuart Maniraguha, the NFA Acting Executive Director, welcomed DTB’s partnership for a noble cause.
He said Kasonke forest is of high biodiversity and also works as a catchment for both the stream and lake, which the people of Bulayi and Sanji villages depend on for both domestic and production.
He highlighted the fact that environmental management or conservation is basically the sustainable use of forest resources, which are under threat hence the need for restoration.
Beyond tree planting, the project also encompasses a broader vision of enhancing biodiversity and fostering community development. The DTB partnership, officials said, would empower adjacent communities through education and participation in afforestation and reforestation programs.
Community-based groups will receive training in tree nursery management, sustainable resource utilization techniques, and forest conservation, basically being equipped with the knowledge and skills necessary for sustainable living.
Uganda has a total of 64 central forest reserves under the stewardship of the NFA, which play a critical role in biodiversity conservation, ecosystem services, and sustainable resource management.
These reserves are essential for protecting Uganda's rich natural heritage and supporting the livelihoods of local communities dependent on forest resources but face degradation and depletion due to human pressures.
By restoring the severely degraded forests, initiatives like the one DTB has rolled out plus the others by companies such as MTN Uganda, help to safeguard biodiversity, ensuring that ecosystems remain resilient and capable of supporting a wide range of plant and animal life.
These partnerships have been welcomed by many stakeholders are a significant step towards environmental restoration and sustainable development for the benefit of this and the next generations.
MTN Uganda, through its philanthropic arm, MTN Foundation, has reaffirmed its commitment to improving healthcare access in Uganda with a significant donation valued at more than UGX58 million to Nawansega Health Centre III in Luuka District, in Eastern Uganda.
The donation includes essential medical equipment such as a CBC 3-part machine, a centrifuge machine, delivery and programming costs, solar lighting, 15 hospital beds and 15 mattresses, a medical refrigerator, and a microscope, aimed at bolstering healthcare services in the region.
The CBC 3-part machine is a critical equipment for hospitals and modern laboratories and is a rapid and cost-effective tool for assessing a patient's overall blood health. It provides valuable information to healthcare providers for diagnosing and monitoring a wide range of conditions, from infections and anemia to leukemia and other blood disorders.
The hand-over ceremony, held at Nawansega Health Centre III, was attended by community leaders, health practitioners, and representatives from MTN Uganda, marking a pivotal moment in MTN Foundation’s Access to Health Care Initiative. This initiative focuses on enhancing maternal and neonatal health countrywide.
Rt Rev. Patrick Wakula, the Bishop of Busoga Central Diocese and the chief guest, urged residents to utilize the health facility for all health-related issues, including counseling services. “Let us work together to eliminate diseases in our communities and learn to seek healthcare services at our health facilities,” he said.
While handing over the equipment, Dorcas Muhwezi, the General Manager for Customer Experience at MTN Uganda, said they firmly believe that everyone deserves the benefits of a modern connected world, including access to quality healthcare.
“This belief is the driving force behind our Access to Health Care Initiative, which we proudly launched in 2018 to help our government improve maternal and neonatal health in our communities,” she said.
Nawansega Health Centre III, a private not for profit facility, supporting more than 4,200 people, thus joins a growing list of 45 other beneficiaries under this initiative, which has seen MTN Foundation invest UGX 1 billion since its inception.
Some of the health centres that have benefitted from this initiative include Kimaka Health Centre III in Jinja City, Kagote Health Centre III in Fort Portal City, Ajia Health Centre III in Arua District, Kyayi Health Centre III in Gomba District, and Kaabong Mission Health Centre III in Kaabong District.
Each centre has received critical equipment and support aimed at enhancing the quality of care provided to their communities.
Muhwezi emphasized that the new support is closely aligned with UN Sustainable Development Goal 3, which aims to reduce the global maternal mortality ratio to less than 70 per 100,000 live births and end preventable deaths of newborns and children under 5 years by 2030.
“We extend our sincere appreciation to the management of MTN Uganda for their support, which will significantly enhance healthcare in our nearby communities,” said Kenneth Kulata, In-Charge of Nawansega Health Centre III.
Located in the Busoga sub-region, Luuka District is a new district that was carved out of the larger Iganga District in 2005 and became operational as a separate district in 2010. Access to quality healthcare and education remains a challenge in most areas.
Kulata noted that whereas the facility serves the whole sub-county of Nawansega, it still faces challenges, including inadequate staffing, the absence of an ambulance, and a lack of clean piped water.
Stanbic Holdings Uganda Ltd has announced the appointment of Catherine Poran as the Chief Executive Officer of Stanbic Business Incubator.
Poran replaces Tony Otoa who joined the State-owned Uganda National Oil Company as Corporate Affairs Manager in April, after six years in the driving seat.
The Stanbic Business Incubator is part of Stanbic Uganda Holdings Limited (SUHL) and a sister company to Stanbic Bank Uganda Limited and SBG Securities Limited, which are all subsidiaries of the Standard Bank Group of South Africa.
A Ugandan national, Poran has been the Head of Corporate and Investment Banking at Standard Bank Mozambique.
The company said in a press release that Poran is a seasoned banker boasting of a 20-year career in the Standard Bank Group, including 15 years with Stanbic Bank Uganda.
Francis Karuhanga, the Chief Executive of Stanbic Uganda Holdings Limited (SUHL), said he was “thrilled” to have Catherine at the helm of Stanbic Business Incubator, which she has served as a Board Member since its incorporation and has been a part of the value creation and journey mapping.
“Her appointment as CEO is a natural progression, and we are confident that she will leverage her skills, knowledge, and expertise to actualize the company’s vision,” he added.
Poran welcomed her new role saying she was “honoured to have the opportunity to lead Stanbic Business Incubator and contribute to the growth of Ugandan businesses.”
She added: “I look forward to working with our stakeholders and partners to drive innovation, entrepreneurship, and economic development in line with our purpose of driving Uganda’s growth. My vision is to further establish Stanbic Business Incubator as a leading hub for entrepreneurship and innovation in Uganda, and I am committed to working tirelessly to achieve this goal.”
A versatile and seasoned lawyer and banking executive, Poran is credited for being a partnership-driven professional backed by decades of experience in volatile and complex environments.
She holds an MBA from Edinburgh Business School, Heriot Watt University, UK, a Master of Laws from Buckingham University, and a Bachelor of Laws from Buckingham University.
Over the last six years, the Stanbic Business Incubator has played a vital role in fostering a conducive environment for entrepreneurial growth in Uganda, offering both tangible resources and intangible support to help startups thrive.
Poran joins the company at an important time barely two months after they flagged off two innovative programs aimed at supporting businesses to access finance and fostering economic growth within Uganda’s dynamic SME sector.
The Stanbic Accelerator Program (SAP) and the Supplier Development Program (SDP) aim at equipping SMEs with the essential skills, knowledge, and resources needed to thrive in today’s competitive business landscape.
The company is leveraging on partnerships with MTN Uganda, the Uganda Chamber of Mines and Petroleum, Uganda Registration Services Bureau (URSB), National Social Security Fund (NSSF), GIZ, Petroleum Authority of Uganda, among others to impact more than 3,000 businesses every year.
The Supplier Development Program is particularly exciting as it is in alignment with Uganda’s fledgling oil and gas sector and is expected to demystify opportunities and empower SMES to participate actively in the nascent industries.
The Standards Utilities and Wildlife Court has sentenced Kerim Ray, a Turkish investor and Director of Yamani Construction Limited, to pay a fine of UGX200 million, following his conviction for degrading a wetland in Mukono District.
Ray, through his company had been charged with encroaching upon and depositing murram in Lwajjalli wetland. He was also ordered to restore the Lwajjali Wetland in Mukono within 30 days, under the supervision of the National Environment Management Authority (NEMA).
The court, presided over by Chief Magistrate Gladys Kamasanyu, found Kerim Ray guilty of violating environmental laws and sentenced him to a fine of UGX150 million and in default, five years in prison for the first count.
He was ordered to pay UGX50 million for depositing murram in the wetland, and in default, serve two years in prison for the second count. The sentence on money is cumulative while the jail term is to run concurrently.
The case against Kerim Ray stemmed from an inspection report that found that his company had started clearing vegetation and back filling murram in the wetland area. Kerim Ray was in particular convicted following his plea of guilty of failure to comply with the conditions stipulated in the Certificate of Approval of a project brief of environmental social impact assessment, contrary to the National Environmental Act.
The court heard that on June 30, 2024, at Gongobe village, Seeta Goma division, Mukono District, Kerim Ray failed to comply with the conditions of the environment and social impact assessment certificate number 18516 issued to Yaman Construction Limited by extending beyond the area authorized in the certificate of approval.
It was the Prosecution's case that on the same day, the convicts deposited murram into a section of Lwajjali Wetland system measuring 0.8 acres without authorization from the environment agency.
While sentencing Kerim Ray, Gladys Kamasanyu considered the fact that the convict pleaded guilty to the offenses and spared him the maximum penalty of paying UGX2.6 billion in fines or serving 26 years in jail. The magistrate reasoned that Kerim Ray did not waste the court's time and resources and therefore earned himself a lenient sentence.
He was jointly convicted with a Ugandan national, Eric Avunalo, who was sentenced to a caution after he pleaded that he did not know that the area where he was backfilling with murram was out of the approved area since he was acting on the instructions of his employer.
The court observed that wetlands are very important in people's lives since they filter solid waste, drain water, and are home to aquatic life. Their destruction is therefore linked to numerous consequences, including floods which Kamasanyu said have recently locked up Kampala City whenever it rains.
"Uganda has suffered the consequences of destroying wetlands such as floods even in the heart of the city, there is plenty of evidence, people have lost lives and property," said Kamasanyu, adding that that wetlands reduce the effects of flooding, they retain waste, reduce the speed of the floor of water, and hence restore water while releasing it slowly.
"Wetlands are also habitats for fish and wildlife and other microorganisms even those we don't see with our eyes," added Kamasanyu.
The court further observed that Kerim Ray should be helped to reform and respect the laws of Uganda in case he has a future project to run. He was advised that he has a right to appeal within 14 days.
Meanwhile, the same Court has remanded seven Chinese to Luzira Prison on charges of disturbing a wetland by drilling.
The Court heard that Liang Cheng Wu , Ui Wen Hu, Lian Cheng Xiang, Hu Dong Xu ,Ge Xing Liang , Wang Peichuan and others still at large on July 8th, 2024 at Kamuwunga village Magezi Kizungu Parish Lukaya Town Council Kalungu district, disturbed Lwera wetland by drilling it in a manner that is likely to destroy it.
Prosecution's Judith Nyamwiza told the Court that the inquiries in the matter were incomplete and it would take two weeks to finalize them. She prayed for a shorter adjournment to organize the sureties. They were accordingly remanded until July 30th for fixing for hearing and for the bail application.
Effective this September, Uganda Airlines will start flying to two more African countries, following the announcement of flights to Harare in Zimbabwe and Lusaka in Zambia, thus bringing the airline’s total routes to 16.
CEO Jennifer Bamuturaki told journalists at a briefing today that in addition to three weekly flights to Lagos, the airline would also fly to the Nigerian capital Abuja effective September 12, with two flights a week on the Airbus A330-800 aircraft.
Established in 1991 as a replacement for Lagos, Abuja not only serves as the capital city of Africa’s most populous country but also as a diplomatic hub, hosting numerous embassies and international organizations.
The city is a melting pot of Nigeria's diverse ethnic groups and cultures. It offers a blend of traditional Nigerian culture alongside modern urban lifestyles, making it a unique cultural mosaic within the country. This contributes to its cosmopolitan atmosphere and global significance.
Flights to Lusaka and Harare will start on September 25, scheduled for Mondays, Wednesdays, Thursdays, and Saturdays on the Bombardier CRJ-900 aircraft.
Also set to launch flights to London Gatwick by end of year, Bamuturaki said adding the new routes is part of the airline’s strategy to bridge geographical gaps and connect East to West, North to South Africa, in line with their vision to become one of the continent’s biggest carriers.
Lusaka, Zambia’s commercial hub, controls 75% air traffic and is served by 14 airlines to 16 destinations, mostly within the African continent in addition to Asia.
Harare International Airport, officially known as Robert Gabriel Mugabe International Airport since 2017, is the largest and busiest airport in Zimbabwe, serving as the primary gateway for international and domestic flights into the country.
Harare, the country’s economic, political, and cultural center, is serviced by various airlines, connecting the country to major cities across Africa, as well as international destinations in Europe, Asia, and the Middle East.
Zimbabwe serves as a transit route and trade hub for Southern Africa, thanks to its strategic location and infrastructure connections that facilitate trade flows between countries in the Southern African Development Community (SADC) region, thus enhancing regional economic integration.
“The new services also mark the second phase of our network development and attest to our mission to bring affordable air travel to Ugandans for business and leisure. They also lay the groundwork for the final phase, during which we shall expand our footprint to points in Europe and Asia,” said Bamuturaki.
Uganda Airlines currently operates two Airbus A330-800N widebodies and wet-leases one A320-200 from South Africa, while its regional fleet comprises three Bombardier CRJ900LRs.
The airline already flies to Kinshasa (DR Congo), Mogadishu (Somalia), Mombasa and Nairobi (Kenya), Mumbai (India), Bujumbura (Burundi), Dar es Salaam (Tanzania), Dubai (United Arab Emirates), Johannesburg (South Africa), Juba (South Sudan), Kilimanjaro (Tanzania), and Zanzibar in the Indian Ocean.
With the addition of the new routes on the continent, officials believe that the five-year airline would bridge West Africa and Southern Africa hence bring convenience to travelers across the continent with direct flights and seamless connectivity for business, trade, tourism, and socio-cultural linkages.
Analysts insist that African airlines should do more to extend flights across the continent as air travel helps to facilitate trade and economic activities by connecting markets, businesses, and industries across the continent.
This connectivity, they argue, is an important enabler of regional economic integration efforts such as those promoted by regional economic bodies such as the African Union (AU) and the African Continental Free Trade Area (AfCFTA).
The International Monetary Fund (IMF) has projected modest global economic growth over the next two years, driven by various regional dynamics, but cautioned about numerous risks that could derail this path.
In its latest update to the global economic outlook released on Tuesday, the IMF highlighted that while the United States is experiencing a slowdown, Europe appears to be bottoming out, and China is seeing a surge in consumption and exports. However, the momentum in combating inflation is waning, which might delay interest rate cuts and maintain the pressure of a strong dollar on developing economies.
The IMF maintained its forecast for real global GDP growth in 2024 at 3.2 percent, unchanged from its April prediction, and slightly increased its 2025 forecast by 0.1 percentage point to 3.3 percent.
Despite these updates, the growth levels are still insufficient to alleviate concerns of prolonged economic stagnation, a scenario IMF Managing Director Kristalina Georgieva has likened to the "cool 20s."
The forecast for growth in sub-Saharan Africa is revised downward, mainly as a result of a 0.2 percentage point downward revision to the growth outlook in Nigeria amid weaker than expected activity in the first quarter of this year.
Generally, the updated forecasts indicate some regional shifts among major economies. The IMF cut its 2024 growth forecast for the United States by 0.1 percentage point to 2.6 percent, citing slower-than-expected consumption in the first quarter.
The 2025 growth forecast for the U.S. remained unchanged at 1.9 percent, reflecting a slowdown driven by a weaker labor market and reduced spending in response to tighter monetary policy.
IMF Chief Economist Pierre-Olivier Gourinchas noted in a blog post accompanying the report that growth in major advanced economies has become more synchronized as output gaps have narrowed. He pointed out that signs of a slowdown are increasingly evident in the United States, while Europe is showing signs of recovery.
These varying regional dynamics underscore the complexity of the global economic landscape and the challenges in navigating the path to sustained growth.
“As the eight decades since Bretton Woods have shown, constructive multilateral cooperation remains the only way to ensure a safe and prosperous economy for all,” he said.
The report also shows that Inflation is expected to remain higher in emerging market and developing economies (and to drop more slowly) than in advanced economies. However, partly thanks to falling energy prices, inflation is already close to pre-pandemic levels for the median emerging market and developing economy.
The Deputy Speaker of Parliament, Thomas Tayebwa, has hailed the cooperation between Uganda and France in the areas of trade, investment and diplomatic relations as a formidable uniting factor that ought to be fostered for further growth.
“We are looking forward to increasing the trade volumes between our two countries and the European Union in general. We hope that the newly established chamber will also contribute to reduction of the balance of trade which stood at US$57 million in favor of France, according to 2023/2024 figures,” said Tayebwa.
Tayebwa made the remarks while speaking at an event to commemorate Bastille Day, held at the residence of the French Ambassador to Uganda on July 12.
The Bastille Day is a French national anniversary celebrated every 14 July to commemorate the 1789 storming of the Bastille, a major event of the French revolution.
According to Tayebwa, the recent establishment of the French Chamber of Commerce in Uganda on 04 July 2024, will galvanise the operations and impact of French companies in the country.
He called for more investment by French companies in the areas of agro-industrialisation and agribusiness, mineral beneficiation of oil and gas, and tourism development.
“Uganda is ready to continue improving the investment environment to attract strategic investors and ensure good return on their investment. French companies in Uganda numbering over 40, are today reputed to employ around 3,000 Ugandans and directly contributing strongly to revenue through taxation,” Tayebwa said.
He also commended France’s key role in maintaining peace and security as a member of the United Nations Security Council, and called for its support for the African position at the Council.
“Uganda believes that Africa should have a bigger voice on the Security Council. In this regard, Uganda would welcome France’s positive voice and support for the African position in the framework of the ongoing discussions on the reform of the UN Security Council,” he said.
The French Ambassador to Uganda, Xavier Sticker, highlighted the impact of investments by French companies in Uganda, noting that their turnover currently exceeds 2 per cent of Uganda’s GDP in sectors like energy, infrastructure, logistics, transport, engineering and agriculture.
“In 2023, they invested US$1.6 billion which is 53 per cent of the total foreign direct investment in Uganda. Over the next three years, they plan to invest US$4.1 billion (Shs16 trillion), according to the results of a survey by France’s foreign trade advisers in Uganda,” Sticker said.
He also noted support worth more than €800 million from French Development Agency (AFD) in sectors like water and energy, including planned delivery in December 2024, of a major water treatment plant and network that will supply water to a million Ugandans from the border with Tanzania to Mbarara.
The French Ambassador lauded the Uganda-France partnership for peace and stability in East Africa. “This is illustrated in particular by the cooperation between the UPDF and the French forces stationed in Djibouti, in support of peace operations in Somalia and the Democratic of Congo. France also supports Uganda’s generous refugee policy and also provides food aid to Karamoja and West Nile,” said Sticker.
The Bank of Uganda (BoU) says it is set to start buying gold from the local market, amid concern over the ramifications on the economy given the country’s unregulated or non-transparent market environment.
The objective of the initiative dubbed, Domestic Gold Purchase Program, is to support the government's value-addition efforts in regard to the country’s mineral resources, mitigate the country's reliance on imports of raw gold, and lift household incomes.
According to the BoU's state of the economy report for 2024, the gold purchase plan is designed to build the country's foreign reserves and minimize risks associated with reserve investments.
“This initiative is expected to support the government’s ongoing value addition to the minerals and Import Substitution Strategy by reducing the imports of raw gold into the country. By purchasing gold directly from the artisanal miners, the BoU will also be supporting the livelihoods of artisanal and small-scale miners, and this has positive spill-over effects on other sectors of the economy in line with the Central Bank’s mission of supporting the governments socio-economic transformation,” the report reads in part.
It adds; “With the BOU plan to purchase gold locally from the artisanal miners to complement existing measures to accumulate international reserves, imports of raw gold are expected to reduce, contributing to the reduction in total imports, in turn leading to a decrease in both trade deficit and current account deficit.”
According to the BoU, the importation of raw gold has been a substantial drain on the country's finances. The latest figures indicate that Uganda loses approximately $200 million annually from the import of raw gold.
Speaking at the ‘Gold in Banking Conference’ held in Kampala on July 11, various stakeholders were cautiously positive about the development saying it was a welcome move.
Kepher Kuchana, the Director the Government Analytical Laboratory at the Ministry of Internal Affairs, who represented his Minister Kahinda Otafiire, urged BoU to adopt a framework to curb illicit gold markets and to ensure buy-in from all the stakeholders. James Byaruhanga, an artisanal miner from Mubende, expressed optimism about the program, describing it a “game-changer.” “For years, we have struggled to find stable markets for our gold. The BOU’s initiative is a game-changer for us. It not only guarantees a fair price for our hard work but also recognizes the importance of our contribution to the economy."
It is not yet clear when the Domestic Gold Purchase Program would kick off officially or how it would be regulated, but some experts say it should be handled with care as it may come with some ramifications for the economy.
One of the BoU’s key functions is to manages Uganda's foreign exchange reserves – held in hard currencies, gold and other assets - and to intervene in the foreign exchange market to stabilize the exchange rate and ensure orderly market conditions.
Gold reserves act as a hedge against inflation and as a financial cover during geopolitical and macroeconomic uncertainty. Gold is considered a low-risk asset compared to other investments. Central banks often use gold to manage risks associated with fluctuations in currency values and interest rates.
Holding a substantial amount of gold reserves could enhance a central bank's credibility and inspire confidence among investors and the public regarding the stability of the country's financial system. Also, Central banks may strategically acquire gold as part of a long-term plan to strengthen their economic position globally or to influence international financial markets.
However, some Central banks avoid getting involved in buying gold locally due to con-cerns over market stability, regulatory compliance and logistical challenges, and the need for internationally recognized standards of security and authenticity of the com-modity. For example, local gold purchases could be vulnerable to manipulation or insid-er trading, and more so given our unregulated or non-transparent market environment
Also, for the Central bank as a bulk purchaser of gold, buying large quantities of gold locally could distort local prices and disrupt the market, potentially leading to volatility or speculation.
In recent years, Uganda has emerged as one of the continent’s leading gold refiners and exporters. However, pressure has been mounting on gold producers in regard to rampant tax evasion, prompting URA to caution airlines operating in Uganda not to accept any gold shipments from Uganda unless the exporters have proof of settling their tax obligations.