Economy In Uganda

Kampala-UGANDA

There are a lot of comments coming in from many sectors of the population in Uganda. Most of this is on the high increasing rates of the prices with in the economy of Uganda. This has a very significant impact on the volumes of trade that happen with in the country. We can appreciate the fact that Kampala the capital city is where trade happens and it’s the same destination for most of the government agencies that aid trade in one way or the other; this means that they are directly affected by the impact of this.

Last year, Uganda was faced with a fuel crisis that made a big turn in the prices of all the commodities. The Ugandan economy is heavily determined on the price of fuel since most of the raw materials whether imported or locally purchased need to be transported to the factory or processing area. All this requires fuel to enable the movement of these. When it comes to the prices of the imported materials, semi finished and finished goods, were affected as well due to the fact that they are not only had to pay high prices but they also had to incur the extra cost of the fuel.

At the end of all this, it’s the final consumer is the one that was to pay since the price was either double the price or even more in some cases; there are some items that had to not only increase in price but even the quantity also reduced. Most of the necessities were affected but this didn’t stop the normal lay man from accessing them. Even when the government asked the partners involved to find a solution, that was later found, they kept the prices high for long. Things are currently getting back to normal but the prices of the final goods are still up even when fuel prices are down. This is how the economy in Uganda is.