At 59 years, Uganda's economy is still zigzagging
By Shamim Nabakooza
Since Independence Uganda has experienced several political turmoils, some of which, like the Idi Amin coup of 1971, did not spare the economy.
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The rebirth of the economy started in 1986 after President Museveni took power following a five year guerrilla war.
Several changes took place, the most crucial one being the liberalisation of the economy
Over the last 35 years, economic growth has averaged 6% per annum but with the outbreak of Covid-19, the economy has suffered a hit.
A number multinational companies such as Game Stores and Africell have closed shop leaving many Ugandans jobless.
In its effort to resuscitate the struggling economy, government has employed several measures including resorting to heavy borrowing.
By 2020, parliament had approved loans worth Shs 18.69 trillion bring the total national debt to Shs 65.82 trillion.
The acquisition of these loans comes with stringent terms especially on the choice of projects that can be undertaken.
Julius Mukunda the executive director Civil Society Budget Advocacy Group said loans have undermined Uganda’s pursuit for an independent economy.
"Borrowing comes with terms and for Uganda there is less to bargain about. Our state is not economically independent," he said.
Prof.Augustus Niwagaba, a development consultant said debt sustainability was affected by the low exports and volatility.
"The economic ballot lies in the market and the independence of a country lies in its economic status. Our economy is unhealthy," he said.
Currently Uganda’s annual economic growth has declined from 6.5% in 2018 to 3.3%.
Amos Lugoloobi, the minister of state for Planning said government is working to restore the economy with new solutions.
"We are not spending on consumption, our priority is investment," he said.
Yet as the government embarks on economic recovery plans, there are calls to reduce the cost of running the government and to invest heavily in trust from the public.
At 59 years of independence, it appears that the country is yet to have a full grip on its economic matters.
