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.