Uganda

Uganda has substantial natural resources, including fertile soils, regular rainfall, small deposits of copper, gold, and other minerals, and recently discovered oil.

Agriculture is the most important sector of the economy, employing more than one-third of the work force. Coffee accounts for the bulk of export revenues. Uganda’s economy remains predominantly agricultural with a small industrial sector that is dependent on imported inputs like oil and equipment.

Overall productivity is hampered by a number of supply-side constraints, including underinvestment in an agricultural sector that continues to rely on rudimentary technology. Industrial growth is impeded by high-costs due to poor infrastructure, low levels of private investment, and the depreciation of the Ugandan shilling.

The budget is dominated by energy and road infrastructure spending, while relying on donor support for long-term drivers of growth, including agriculture, health, and education.

The largest infrastructure projects are externally financed through low-interest concessional loans. As a result, debt servicing for these loans is expected to rise.

To learn more about Uganda and the entrepreneurial investment banking services of Africa Capital, kindly contact us.