Uganda's economy predicted to stabilize in six months

Prof Waswa Balunywa blames the recent elections for the economic slump.

Uganda's economy should start stabilising within the next six months, the principal of Makerere University Business School (MUBS), Prof Waswa Balunywa has predicted.

Balunywa, also an economist, believes that an economy which is recovering from elections cannot take off immediately as most investors always withdraw their money, fearing that election violence may occur. Uganda held presidential elections early in 2016.

He stressed that whenever people who invest in the country are not citizens, especially those who invest in the large business withdraw their services, the economy grapples.

"Close to the election period, investors normally withdraw lots of money and flee the country until the country stabilizes and they come back" he noted.

Balunywa made the remarks at a celebration to mark 10 years of collaboration between the MUBS's Faculty of Commerce and Drake University's College of Business and Public Administration.

He stated that as much as Ugandans invest, the bigger investors who are foreigners do not want to risk their money.

He also attributed the current state of poverty in the country to overspending in December.

"January is not an easy month. Many people start spending their money in mid-December and forget that they have January. Many people who are employed do not have money in January" he added.