Skip to main content

UGANDA’S ECONOMY DURING AND AFTER THE LONG-TERM PANDEMIC.

 

Uganda has been affected by the long-term pandemic of COVID-19 for two consecutive years. The pandemic hit Uganda around 09th June 2019 and the numbers kept on fluctuating as the president tightens the restrictions according to number of new cases and deaths. Time reached where the situation became worse and there was a total lock down and this led to total economic shut down and people were not working.

On 25th Jan 2022, the economy fully opened, curfew ended, bars fully open and many others. This sounded like nice music to many Ugandans’ ears and were too excited. Many locked businesses opened and resumed work which improved on the economy since some taxed businesses were locked up. There were also global supply chain disruptions as a result of factory closures in china. And this negatively impacted small and medium enterprises in Uganda.

Most businesses had to fight hard to get solutions for the pandemic to survive and Uganda as a country hardly got measures for the country to survive on and keep moving. Some entrepreneurs opted for other businesses that were working during lock down as others waited until the economy was fully opened.

The 17th Uganda Economic Update (UEU), from crisis to green resilient growth: investing in sustainable land Management and climate-Smart Agriculture, says that the COVID-19 shock caused a sharp contraction of the economy to its slowest pace in three decades. Household incomes fell when firms closed and jobs were lost, particularly in the urban informal sector. The country’s Gross Domestic Product contracted by 1.1 percent in 2020, and is estimated to have recovered to 3.3 percent the during 2021 fiscal year.

The government lost a lot of money since many businesses that are income generating were not working. Also spent money on donating food stuffs to the community especially in urban centers where they don’t grow crops, buying medicine and other COVID-19 facilities for the patients. Though some companies and individuals helped the government in donating food stuffs and other facilities needed. The government also got foreign support like free vaccines and loans to help to meet its needs.

The economy has been affected due to;

1.  Negative impact of anticipated economic growth rate

2.  Negative impact on imports.

3.  Negative effect on the balance of payments position.

4.  Foreign financial flow effects.

5.  Uganda shillings depreciation effects.

6.  Redundant domestic capital.

7.  Inflationary pressures due to supply side shortages.

8.  Reduced revenue collections.

9.  Unanticipated increase in health spending.

10.   Reduced investment and increased joblessness.

11.   Manufacturing sector effects.

12.   Reduced domestic trade effects.

13.   Oil demand shocks.

14.   Loan disbursements

The possible solutions put for the pandemic include

1.  Creation of a Uganda coronavirus Relied Fund.

2.  Creation of national task force.

3.  Intensifying the Buy Uganda Build Uganda policy and campaign.

4.  Creation and stocking of food banks.

5.  Increase of agriculture sector funding by government.

6.  Payment of government domestic arrears.

7.  Re-prioritization of the budget.

Uganda’s economy rebounded strongly as domestic economic conditions improved. The third wave of covid-19 infections was also milder and is now over. On 8th June 2021, the economic growth outlook is 2.6 percent in the 2022, and acceleration to 6.4% in the 2023 fiscal year.

 

Comments

Post a Comment

Popular posts from this blog

WHY EAST AFRICA NEEDS THE EACOP.

There has been recent claims on a motion of resolution by the European Parliament that calls on Uganda and Tanzania to stop the development of oil and gas projects in the East African region.  However,  Uganda and East Africa need the Oil pipeline following public reactions towards the negative motives of the European Parliament. It brings back colonial times, much as their arguments have a grain of salt, I dont think the the implementers of EACOP did not conduct Environmental Impact Assessment (EIA). This was done and all aspects taken into consideration. And besides that, Africa at large is the least contributor to climate change. They (first world countries) are the biggest contributors-they are burning fossil fuels like coal which contribute heavily to climate change.  They have refused to stop their use, they should tackle that First, before they start extending their concerns to us. We need this pipeline as a region, we should just look at ensuring its...
Post a Comment
Read more

BOBI WINE BACK TO AMSTERDAM TO MEET HIS LGBT ASSOCIATES 

Many people wonder why “Bobi Wine” has profound love for Amsterdam and not any other city in the world. There are two spectacular things about Amsterdam that will always attract Bobi Wine to this City. Just like they say, “Old habits die Hard”.  The Ghetto President still enjoys smoking his weed and he considers Amsterdam being one of the cities in the world where cannabis is smoked freely in their popular cannabis coffee shops like Amnesia, Smokey, La Tertulia and Bobi Wine’s favorite Coffee shop Sloterdijk. He smokes and meets his associate, Erik Vander Zanden a Dutch who mobilizes Ugandans that live in Amsterdam to support Bobi wine and the NUP struggle from Sloterdijk. It is not surprising that one of the upcoming meetings in Amsterdam around 2nd July 2022 has been sponsored by the famous cannabis Coffee shop Sloterdijk.  As it is said, “There is no Free Lunch” Bobi Wine is psychologically held captive by his Netherlands supporters who are constantly pressuriz...
Post a Comment
Read more

EXCLUSIVE: US Embassy on the spot for Secretly Recruiting and Training Youth to Cause Regime Change in Uganda

According to a leaked dossier, H.E Natalie Brown, the US ambassador to Uganda like her predecessor H.E Deborah Malac and the US embassy are on spot for recruiting and training youth in political activism to cause regime change in Uganda through demonstrations and uprisings. According to the dossier, the US mission in Uganda is running a secret operation to slowly and tactically cause regime in Uganda through mobilizing youth and opinion leaders under what they coded as ‘mind set’️ change programs. The dossier, states that the US mission disguises their activities under offering scholarship and mentorship programs to recruit youth who are trained locally and abroad in skills that can be used to exert political pressure on the government with a long term goal to cause regime collapse.  Some of the targeted members innocently fall into the recruitment trap by the US Embassy because they are unemployed. This secret plan has its roots in Obama founded initiatives like th...
Post a Comment
Read more