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

MASAKA KILLINGS ASSOCIATED WITH POLITICIANS’ INTERESTS-SAYS CHRIS BARYOMUNSI.

During a press conference at Uganda media Centre yesterday, the Minister for ICT and National guidance said that it was established that some opposition MPs have always embarked on painting a negative image in the community against the government.  This is meant to indicate that the government has failed to protect its citizens hence clandestinely encouraging mass public protests to ensure the success of their missions. He further encouraged the people in Greater Masaka to work closer with the local authorities to eliminate the vice than listening to the same politicians who see an opportunity in the machete welding goons. It is noted that this is not the first incidence of a kind most especially after elections where politicians always promise plan B, C, D. the related incidences include the women killings in Entebbe, Bijambiya killings around the Kampala suburbs. The total number of deaths mounted to 28 by the time of the press and government had laid all plans of curbing the vic...
Post a Comment
Read more

I STAND WITH UGANDA

            In the aftermath of the violence, several people were hurt, businesses were destroyed, Crowds looting and setting alight shopping centers, were captured on videos and panic gripped the entire citizen population due to the uncertainty “I was in my shop when a group of ten young men came in and looted all my goods and the money in the safe,” Faridah Nakazi, a shopk eeper in Kampala, says. “They beat me before fleeing”. Taxi driver Silvester Owor laments how “thugs placed objects in the road forcing passengers to get out of the taxi. They beat them before taking everything they had”. Source: https://www.lifegate.com/uganda-riots-bobi-wine Soldiers working with the police managed to catch a few rioters; in total almost 45 were arrested, but law enforcement remained heavily outnumbered. Following the arrests made the opposition has gone ahead to provoke, attack, humiliate and create false propaganda in order to plant hate for ...
Post a Comment
Read more

AN ENEMY WITHIN. The Secret Position of David Lewis Rubongoya in NUP and why he is there".

There is a saying that says; "What will swallow you is usually part of the nice garment you often want to put on. Everyone since the inception of NUP has always wondered why the NUP delegation Conference chose David Lewis Rubongoya as the Secretary General of the Party. Let's pause A bit, what if this was a state intended choice to ease its spy activities in the NUP party?? It's wise to know and intently perceive that a Secretary General in any political party has almost more powers than anyone else.  Family background According to our trusted sources, Lewis Rubongoya is a Mubiito Munyoro whose parents shifted from Bunyoro to Mbarara District. His father was an ordinary veterinary doctor and the mother was an unlicensed teacher who stopped teaching at a young age.  David Lewis is the fourth out of five children from the mother's side and the ninth on the father's side because the father had four other children from a different mother. The Father later o...
Post a Comment
Read more