This archive report was first published on 15 May 2020.
As the Covid-19 pandemic continues to ravage the world, Uganda's business leaders have seized the opportunity to take charge and shape the country's future. In a bold move, they have presented a united front, proposing a new economic order that prioritizes import substitution and boosts the country's productive capacity.
The last time business leaders in Uganda presented a united front was in the mid-1990s, when they resisted the introduction of Value Added Tax. However, this time around, they have managed to convince the government to listen to their proposals, with President Museveni even addressing their e-conference and endorsing their ideas.
One of the key drivers behind this new economic consensus is the Private Sector Foundation of Uganda (PSFU), which has brought together various business groupings and agencies under one umbrella. With a strong voice and unity, PSFU has been able to leverage the knowledge that the government is worried about the country's economic stability and is ready to listen to serious partners.
PSFU's proposals include boosting the country's productive capacity through import substitution, using the old independence-era strategy of import substitution. They have also proposed re-capitalizing the Uganda Development Bank to provide loans at minimal interest to locals investing in 'value addition' ventures.
Despite the challenges posed by the Covid-19 pandemic, Uganda's business leaders have demonstrated their capacity to adapt and innovate. Within a month of the lockdown, several local chemical industries had started manufacturing quality sterilizers, earning the president's applause. Even more impressive was the designing and testing of ventilators, which has seen the country's ventilator stock increase from 50 million to a more manageable level.
