The second edition of the UG Economic Forum begins today in Kampala. The three-day forum will address several of Uganda’s
The second edition of the UG Economic Forum begins today in Kampala.
The three-day forum will address several of Uganda’s pressing economic concerns including tourism, agriculture, and supporting its post-COVID economic recovery.
During the COVID-19 pandemic, Uganda experienced a significant economic downturn primarily due to 80% of businesses shutting down and a sharp decline in tourism. In response to economic losses, the national government launched a stimulus package including tax deferrals and food relief. Today’s meeting will work towards bolstering social and economic protections and expanding the country’s safety net as its economy comes back online.
In the near term, the government is expected to implement initiatives focused on strengthening commercial agriculture as a driver of growth. In addition, the government will likely direct efforts at incorporating the informal sector into the broader economy to expand the country’s tax base. In the medium term, Uganda will likely cut interest rates from the current number of 9.5 to stimulate growth. Some experts anticipate larger economic growth concerns to loom in the long term, mainly because of low domestic consumer demand and a lack of foreign direct investment.