Hey guys, just been checking the news this Monday and damn, Uganda’s business side is moving.
Inflation just jumped to 4.0% in July. UBOS said it. Fuel, electricity and even water prices are the main culprits. Petrol and diesel still high, water charges went up bad. People in Kampala especially feeling it. Food prices also started climbing again after they had calmed a bit. Core inflation is holding at around 3.4% but still, cost of living is biting.
Then this Rwanda thing. They suspended like 11 of our alcohol brands – Bond 7, Gilbey’s, some X5 products and others. Part of a big recall of 52 drinks from different countries. Rwanda FDA saying it’s for public health. Our exporters not happy at all. These brands were moving well across the border. Now stocks stuck and money locked. Hope they sort it fast before it hurts the factories more.
On a better note, Uganda and Tanzania signed a deal for that Tanga energy hub. Museveni and Samia were there. It’s about refining, storage and trading petroleum. Builds on EACOP which is almost done – they saying around 92% complete. First oil still expected before end of year. If this works, East Africa can start adding more value instead of just exporting crude. Jobs and industrialisation talk is real this time.
Business confidence also came back strong. EPRC released their Business Climate Index and it jumped over 20 points to 124.9 for April to June. Companies feeling more optimistic for July to September, especially in services. Still complaining about high fuel and operating costs though. The rebound is fragile, they say.
Stanbic also launched that direct Yuan payment system. First bank here to connect to China’s CIPS. Now traders can pay or receive in RMB without going through dollars all the time. Should make China trade cheaper and faster. With how much we import from them, this one is big.
Looking at all this, you can see the economy is trying. Oil is coming, energy partnerships growing, banks innovating. But inflation and these sudden trade disruptions from neighbours keep reminding us nothing is smooth. Manufacturers and government even sat down last week to talk industrial growth again. Everyone knows manufacturing must lead if we want that 500 billion dream.
For ordinary people and small businesses, the pressure is real. Transport costs high, electricity bills high, and now some export markets closing temporarily. At the same time big projects keep giving hope.
I think the next few months will show if the optimism sticks or if fuel and inflation push confidence down again. Keep watching the numbers and the deals. Uganda business never sleeps