Uganda Roundup: Export gains, financial literacy, deforestation

Exports to Rwanda increase

Uganda's exports to Rwanda have increased significantly, reaching Shs110b (about $2.7 million). Trade between the two countries improved following a period of strained relations, with the signing of a Memorandum of Understanding in January 2022. Uganda has also recorded a trade surplus with DR Congo and increased exports to South Sudan, Monitor reports.

Struggling SMEs

Small and medium-sized enterprises (SMEs) serve as the critical pillars of the Ugandan economy, yet their survival is often jeopardized by inadequate financial literacy. Authorities caution that without adept financial governance, these entities face an imminent risk of collapse, notwithstanding their inherent capacity for expansion. Mr. Charles Ocici, the Executive Director of Enterprise Uganda, underscores the importance of financial acumen for entrepreneurs to navigate the complexities of commerce and ensure enduring economic fortitude. "Most Ugandans operating SMEs view profits as an achievement rather than a resource to be reinvested. They spend their profits without realising that reinvesting capital is key to scaling their businesses," he told Monitor.

Coffee production projected to increase

Uganda's coffee production is projected to reach 6.9 million bags in 2024/25, with an increase in consumption and exports expected, reports Zawya. According to a report issued by the U.S. Department of Agriculture's Foreign Agricultural Service (FAS) post in Nairobi, "Uganda's coffee production in 2024/25 is forecast to reach 6.9 million bags (60 kg), an increase of 40,000 bags from the previous year, due to adoption of good agricultural practices, targeted interventions to combat pest and disease outbreaks, and maturation of new high-yielding seedlings planted in recent years. 2024/25 consumption is anticipated to rise by 1.2% to reach 330,000 bags largely due to the proliferation of coffee outlets in Kampala city and other urban areas. 2024/25 exports are expected to slightly increase from 6.52 million to 6.58 million bags because of increased domestic supply."

Deforestation causing havoc

Deforestation is threatening plant and animal species in Mt Elgon National Park, jeopardising ecosystems crucial for the survival of people in Bugisu Sub-region. The park, located on the border between Uganda and Kenya, covers an area of 494 square miles and is a major water catchment area. Deforestation has led to disasters such as floods, loss of soil fertility, and drying rivers. Locals are engaging in restoration and conservation activities, while the government has unveiled plans to plant 300,000 high-value trees in the region. According to Monitor, boundary disputes between the community and the Uganda Wildlife Authority have fuelled deforestation, with both sides encroaching on each other's land. Efforts are being made to fight deforestation and manage the park's resources collaboratively.

U.S. calls out Uganda over corruption

The US government has criticised Uganda for failing to arrest and prosecute officials accused of human rights violations. Uganda's foreign affairs minister, Jeje Odongo, responded by accusing the US of double standards and defending the government's actions. As reported by the Monitor, the U.S. report also accuses the government of corruption and interference with freedoms such as media and peaceful assembly. Security forces are accused of arbitrary arrests, torture, and judicial interference. The government denies some of the accusations and blames individual officers for human rights abuses.