Browsing: Uganda

As soon as East African countries restricted movements and public gatherings in response to the rising cases of Covid-19, perhaps owing to the scarcity of information on the pandemic, misinformation flew around social media platforms, causing an overload of fear across the region.

Kenya and Uganda were the first to take precautionary measures as Tanzania adopted a more relaxed stance towards the pandemic, which is being seen as a threat to Africa and the world. During this past week to date, Kenyans on Twitter and East Africans at large have been tweeting information about Tanzania, making it the fourth most trending topic in the world.

Furthermore, the US Embassy in Dar es Salaam, also came out with a statement indicating that “many hospitals in the main city of Dar es Salaam have been overhelmed in recent weeks, contends the risk of contracting Covid-19 there is “extremely high.”

This in turn …

Ugandans could lose jobs if the pandemic persists for the next six months according to the business climate index published by the Economic Policy Research Centre.

According to the Economic Policy Research Centre study, 3.8 million workers would lose their jobs temporarily while 625,957 would lose their employment permanently if the pandemic persists for the next six months. 80 per cent of the workers in Kampala predicted to lose their jobs permanently while in other regions in the country the layoffs might not be permanent.

According to the Uganda Bureau of Statistics 2018, a national estimate of employment stands at 9 million. In the event of the layoff, temporary employment will reduce by 42 per cent while permanent employment will reduce by 7 per cent.

“Over 75 per cent of employees projected to lose their jobs permanently are from the service sector. This is highly expected since most of …

The Government of Denmark yesterday signed a grant worth $2 million to support the COVID-19 response in Uganda.

The $ 2 million grant will be used to acquire masks and Personal Protective Equipment (PPEs) for health workers and will also support the improvement of Sexual and Reproductive Health (SRH) services in Uganda’s selected districts. The Nations Population Fund (UNFPA) and the World Health Organization (WHO) will be used to channel the grant.

Nicolaj Petersen, the Danish Ambassador to Uganda, extended his government’s appreciation to the Government of Uganda for implementing strategic and effective measures to prevent and manage the COVID-19 pandemic at the signing ceremony.

“Uganda has managed to control the spread of the Coronavirus so far. Only 81 cases have been confirmed, most of which were detected at entry”, he said.

Also Read: IMF boosts Kenya, Uganda war on COVID-19 with $1.23 billion

Despite Uganda’s success so far, Ambassador …

Total Uganda has bought out the financial struggling Tullow Oil for a whopping USD575 million as the latter gears up to leave the East African market.

The buyout will be paid in part by a USD 500 million initial payment payable upon completion and another USD75 million payable when the project pact is finalized.

With completion of the sell, Total Uganda will now own Tullow’s assets on the humongous Lake Albert Development project and the even larger East African Crude Oil Pipeline project. Tullow, a British owned conglomerate has been struggling and the just inked Uganda buy out will help improve its liquidity.

The move is not due to the ongoing global coronivrus pandemic, it is rather a strategic plan that was on the table long before the pandemic begun. At the start of the year, the sale and purchase agreement had already been signed, well before the Covi-19 virus …

Investment banking fees in Sub-Saharan Africa reached an estimated US$128.2 million during the first quarter of 2020, a decline of 15 per cent from last year’s strong start.

Advisory fees earned from completed mergers and acquisitions (M&A) transactions generated US$33.5 million, down 38 per cent year-on-year, while syndicated lending fees declined 47 per cent to US$35.7 million.

The authors of the report, Refinitiv, note that Equity capital markets underwriting fees more than tripled to reach US$36.7 million, a first quarter total only exceeded twice since the company’s records began in 2000.

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Bond underwriting fees increased 20 per cent to US$22.3 million, again the third-highest first quarter fee total since our records began.

Almost one-quarter of fees in the region during the first quarter of 2020 were earned from government and agency deals.  Almost two-thirds of all fees were generated in …

Uganda’s delayed oil production could affect economic outlook

https://theexchange.africa/countries/delayed-oil-production-could-affect-economic-outlook-world-bank/

According to the World Bank, Uganda could face serious economic pressures in the immediate future especially with delay in oil production. It has advised that the country would do well to develop its other major sectors – agriculture and industry – as they can guarantee immediate and steady growth outcomes instead of relying heavily mostly on Uganda’s oil production ambitions.

Uganda’s economy must grow faster- World Bank

https://theexchange.africa/countries/ugandas-economy-must-grow-faster-world-bank/

A recent World Bank report, “Uganda: Jobs strategy for inclusive growth” reveals that the country could find itself in a crisis of more workers than jobs unless the economy grows concomitantly.  The report states than an economic transformation is required and Uganda should start with developing commercial agriculture that accounts for about 80 per cent of annual export earnings; the sector employs more than 80 per cent of the workforce in agriculture sector.…

The economies of the East African region have for a long time recorded impressive growths among other African peers. They have been expanding at an average rate of 6.3 percent, with that of Rwanda expected to lead at eight percent from 7.8 percent. This growth, however, is facing one of its biggest challenges with the emergence of the Novel Coronavirus, scientifically referred to as COVID-19 as well as local challenges including political processes and the recent locust invasion. These effects are likely to cut down on any projected growth and gains made over the years. Kenya, the largest economy in the region, will most likely be hit hard with the halting of international flights and tourism. The bourse has already recorded a bear run, similar to other markets in the region. Burundi and Tanzania are preparing for elections, Kenya is seeking constitutional changes and Uganda is looking for ways to …

There is need for Tanzania to involve the private sector to help it fight against illegal fishing if the country is to curb the devastating economic sabotage.

The country is now grappling with illegal fishing, but with the ever depleting amount fish in Lake Victoria and other inland water masses as well, it seems to be a losing battle this far.

The already trouble sector, contributing an average of 2.2 per cent to the Gross Domestic Product (GDP) is taking more hits from illegal fishing. (https://mrghealth.com/)

So bad is the crisis that last month, while addressing the nation from the Lake City of Mwanza, the country’s President John Magufuli made a public appeal in to end the detrimental practice.

The president described illegal fishing as economic sabotage and warned that the nation is losing a vital natural resource, a key economic activity that provides daily livelihood for many …

The European Union is one of Uganda’s major trading partners with annual trade balance books exceeding USD 1 billion every year.

However, more and more free trade pacts are been signed across Africa, opening ever more doors to new markets right within the country and this may upset the traditional foreign trade reliance.

For, now, international trade remains business as usual, why only last month, the EU announced that it is extending Uganda some USD97.5 million as grant financing to fund development projects in this financial year.

This latest grant pact further strengthens bilateral relations between the two even as EU investments in Uganda surpass the USD 2 billion mark per year.

To put icing on the cake, the Pearl of Africa is also expected to get foreign direct investments worth USD 733.3 million that EU firms, according to local media intend to invest over the course of the next …

Mauritius based Tembo Power a limited liability company developing power generation projects across sub-Saharan Africa has reached out to South Africa based PE financier Metier for the construction of Kaptis project, a 14.7 MW run of a river hydropower project in Kenya.

This agreement now allows the partners to appoint lenders and prepare for financial closing, expected this year, and to start construction.

“Tembo Power is delighted to partner with Metier, a reputable and experienced infrastructure fund manager in Sub-Saharan Africa, supported by the main development finance institutions active in the renewable energy field, ” noted Raphael Khalifa, Founder, Tembo Power.

“Such agreement demonstrates the thoroughness of Tembo Power’s development approach, its compliance with the most stringent international standards, and paves the way for extended collaboration with Metier and other key players in the industry.”

Tembo Power started the development of Kaptis (14.7 MW), in Western Kenya, in 2013 after …