• Register
Return to: Home > Comments > Covid -19 impact on Uganda’s economy and public and private sector response

Covid -19 impact on Uganda’s economy and public and private sector response

Hitesh Mehta, Managing Partner at Nexia HMS Associates offers a cross – sector summary and his insights into the current economic state of play in Uganda in response to the pandemic

Logistic, Access to raw materials/input

Recent increases in cases from Coronavirus are seen in truck drivers coming from across borders that has resulted in the slowdown of incoming cargo.

Perishable items are almost impossible to import to the country.

Major input and capital items mainly for the manufacturing industry are being impacted due to this logistic challenge that will also affect the supply side.


Additional operating expenses

COVID-19 containment measures such as hand sanitiser, soap, hand washing facilities, and social distancing have resulted in a slight increase in operating expenses for businesses.


Domestic demand for products

Approximately half of the businesses in the country have experienced decline in demand for their goods by more than 50%.



Approximately three-quarters of the surveyed businesses report a reduction in the number of employees.


Credit and Liquidity constraint

Risks associated with COVID-19 have exacerbated credit and liquidity constraints among SMEs & large businesses.



The Minister of State for Planning David Bahati says the country’s tourism sector earnings will drop to US$ 700 million in the current financial year 2019/2020, meaning the drop will be 39 percent compared to the previous financial year. Uganda’s Tourism sector has in the past been the country’s main export fetching on average US$ 1.4 billion annually.



To contain the virus, schools and colleges have been closed down since 18th March, 2020 till date & will be remain closed up to 30th June, 2020. Though almost all education institutions implemented distance and online learning, all have  felt it ineffective and the schedule of timely tests and examination has been impacted.

Schools are asking for fees after offering little discount, but parents are struggling to pay the fees as their income from jobs and businesses have been impacted drastically.


Real Estate

According to Bank of Uganda, Uganda witnessed a credit advance from Banks into real estate up to a tune of Shs3.19 trillion in the year ending 2019. However, because of Covid-19, this growth has been under attack and a massive slow-down is being witnessed ever since the outbreak of the pandemic.

Before Uganda’s borders were closed, Uganda Investment Authority had already recorded a decline in the number of people coming to Uganda.


Policy considerations

The government should work to further improve the business climate for the private sector and continue undertaking serious reforms to overcome institutional weaknesses. The crisis may also provide an opportunity to strengthen analytical capacity in Uganda to provide policy-makers with research-based solutions for safeguarding Uganda’s economy during future pandemics and other crises.





Top Content

    Brazil: regulation and technology form basis for recovery

    Opportunities in the capital markets and the ever-growing influence of technology are expected to have a significant impact on the Brazilian accounting profession over the next 12 months, writes Paul Golden.

    read more

    Mentoring support and the opportunity to delegate

    Jon Lisby will be known to many from his former role as CEO of Kreston International. Here, he explains the background to his new venture, Global Alliance Advisory Services (GAAS), and how he aims to offer support to alliance CEOs.

    read more

    Global by name, global by nature

    Stephen Heathcote became chief executive officer of PrimeGlobal on 1 June 2019. Robin Amlôt met him to discuss the various new challenges that he has taken on, and his ambitions for the association.

    read more

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more


    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.