Africa-Press – Uganda. <\/strong><\/span>2022 has been a recovery year for Uganda from the Covid-19 pandemic which affected the country\u2019s economy since March 2020.<\/p>\nUnlike other nations which welcomed the year with fireworks and other celebrations, Ugandans were indoors due to the night-time curfew that was imposed to limit the spread of the coronavirus which has led to about 3,500 deaths in the country.<\/p>\n
On the 25th of January 2022, the President of Uganda Yoweri Kaguta Museveni Tibuhaburwa fully opened the country and returned to normalcy although there has been an economic slowdown due to other factors.<\/p>\n
2022 state of the nation<\/b><\/p>\n
The World Bank 2022 Financial Year report, revealed that the Ugandan Economy grew at 4.6 percent which was faster than had been anticipated due to an uptick in activity after the economy reopened in January. The main drivers of economic growth were services and industry.<\/p>\n
Uganda was labeled a fragile state<\/b><\/p>\n
In November 2022, the United States study conducted by the Fragile State Index (FSI) listed Uganda among the countries whose stability is considered fragile. And the third East African country to be on the top list. The FSI annual ranking of 179 countries based on the pressures that contribute to their stability, showed that Uganda is among 19 countries whose stability is labeled fragile.<\/p>\n
Among the factors that are attributed to a fragile state include weak central governments or ineffective that it has little practical control over much territory, non-provision of public services, widespread corruption and criminality, refugees, involuntary movement of populations, and sharp economic decline.<\/p>\n
The major indicators in which the fragility and level of stability are measured include security, factionalism among the elite, group grievances in the societies, economic decline, uneven economic decline, uneven economic development, and the extent of human flight and brain drain.<\/p>\n
Signed deals<\/b>
\nOil deal:<\/b> On 1st February this year, Chinese and French oil giants signed a USD10 billion deal to unlock Uganda\u2019s energy resources and build a vast regional oil pipeline, a mega-project that incensed environmental groups that led to the United Nations Parliament to intervene in this matter.<\/p>\n
The Final Investment Decision was to pave way for the export of millions of barrels of black gold that was first discovered in Uganda in 2006. Full-scale commercial production is planned for this year if nothing changes.<\/p>\n
However, the ambitious scheme has been criticized by environmental activists saying that it threatens the livelihoods of tens of thousands of people and fragile ecosystems in the hearts of Africa.<\/p>\n
GHPP deal:<\/b> In November Uganda signed an agreement with the French independent power producer Hydrogen de France (HDF) Energy to create the first green hydrogen power plant in Uganda.<\/p>\n
According to Uganda, this new technology will provide opportunities to transform Ugandans by creating jobs. The government of Uganda is working hard to exploit all the energy sources available in the country that has a minimal environmental impact.<\/p>\n
Money laundering list<\/b><\/p>\n
In February 2020, Uganda was placed on the Financial Action Task Force (FATF) watch list and subsequently on the European Union money laundering watch list, which raised concern, with many Ugandans fearing how being placed on the grey list reflects on the economy that has been affected so much by Covid-19 pandemic.<\/p>\n
Soon after Uganda was placed on the grey list, a set of conditions were set by the FATF for Uganda to exit the list. The Financial Intelligence Authority (FIA) intensified its efforts in order to fulfill the conditions.<\/p>\n
The Ministry of Finance, Planning, and Economic Development spearheaded a direct line of communication between Uganda and FATF in a bid to liaise with the body to come up with strategies to help Uganda to have a solution to remove them from the list.<\/p>\n
The discovery of gold<\/b><\/p>\n
eveni announced that Uganda has struck a deposit of million tonnes of gold that would fetch the country more than USD12 trillion. If the computations are accurate, it would suggest the new gold find would topple the estimated windfall from oil still in the ground in the Albertine region.<\/p>\n
Museveni revealed that his country has struck a deposit of 31 million tonnes of gold ore, with extractable pure gold estimated to gross 320,000 tonnes and net 320,158 tonnes.<\/p>\n
However, if the government\u2019s estimates are accurate, the country could soon experience a modern-day gold rush. This is something that Uganda is ill-prepared to manage.<\/p>\n
Uganda\u2019s gold sector has been criticized for its lack of sufficient oversight and regulation. In particular, the country has been used as a hub for gold traffickers in the region who smuggle gold from illicit and militant-controlled mines in the eastern Democratic Republic of Congo (DRC). This has resulted in the United States (US) Treasury sanctioning Uganda\u2019s largest privately-owned gold refinery, African Gold Refinery (AGR), in March of this year.<\/p>\n
Compensation payment<\/b><\/p>\n
On 1st September, the government of Uganda started payment of USD325 million (about Shs 1.23 trillion) compensation to the Democratic Republic of Congo (DRC). Uganda paid the first annual installment of USD65 million in reparation for the invasion and looting by Uganda People\u2019s Defence Forces (UPDF) during the Congo war 20 years ago. The compensation is to be paid in five installments of USD65 million, starting on September 1st this year and every September 1st for the following years.<\/p>\n
In 1999, DR Congo petitioned the International Court of Justice (ICJ) accusing Uganda\u2019s armed forces of destroying properties, lives, and natural resources when it invaded the country in 1998.<\/p>\n
In 2005, the International Court of Justice ruled that Uganda had violated international norms as an occupying force between 1998 and 2003. The judges found that Uganda was responsible for the deaths of 10,000-155,000 Congolese in the eastern Ituri region. Ugandan troops were also found guilty of looting gold, diamonds, and timber.<\/p>\n
The opposition legislators opposed the ICJ ruling on Uganda. One legislator SSemuju Nganda said that it would have been fair to charge the individuals who looted the resources from DRC not the country as a whole because the compensation will affect the economy.<\/p>\n
EU Parliament criticized EACOP<\/b><\/p>\n
In mid-September, the European Parliament criticized a proposed East African pipeline, calling for TotalEnergies to consider an alternative route. EU was reacting to the grave concern around alleged human rights violations in Uganda and Tanzania, linked to the Lake Albert project. The plan covers upstream investments in Tilenga and Kingfisher, with the East African Crude Oil Pipeline (EACOP) running to the Tanzanian port of Tanga.<\/p>\n
The EU is proposed that Total should take one year before launching the project to study the feasibility of an alternative route to better safeguard protected and sensitive ecosystems and the water resources of Uganda and Tanzania. The resolution expressed concern about potential tsunami risks at Tanga. The French company should also explore alternative projects based on renewable energies for better economic development.<\/p>\n
Uganda did not go down well with the EU proposal. President Museveni vowed that the EACOP project will go on as scheduled. He also defended the environmental soundness of the project, saying it would be conducted within the law.<\/p>\n
80 Trillion public debt warning<\/b><\/p>\n
In November, the Central Bank of Uganda management issued a statement warning the government of Uganda against looming debt distress as the public debt hits the 80 trillion mark and the 50 percent threshold of GDP.<\/p>\n
Ugandan economist Michael Atingi-Ego the Deputy Governor of Uganda warned that Uganda borrowing more money will cripple the country\u2019s capability to continue serving the foreign debt.<\/p>\n
2022 challenges<\/b><\/p>\n
Although Uganda has been experiencing consistent economic growth in recent years, the country has been challenged by the increase in poverty. The issue of poverty is attributed to many things such as unemployment, corruption, income inequality, the collapse of businesses, and others. Even in 2022 poverty was so much attributed to the Covid-19 pandemic.<\/p>\n
Another challenge was the Russia-Ukraine war. This war dampened Uganda\u2019s growth prospects amidst the waning coronavirus pandemic and full re-opening of the country and a clearer outlook for oil production following the signing of the Final Investment Decision in February this year.<\/p>\n
For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Faridah N Kulumba Africa-Press – Uganda. 2022 has been a recovery year for Uganda from the Covid-19 pandemic which affected the country\u2019s economy since March 2020. Unlike other nations which welcomed the year with fireworks and other celebrations, Ugandans were indoors due to the night-time curfew that was imposed to limit the spread of the […]<\/p>\n","protected":false},"author":84,"featured_media":42841,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6,258],"tags":[233,240,234],"class_list":["post-42842","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","category-to-homepage","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\n
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