Campaigns boost economic recovery - Minister

POLITICS|ECONOMY|ELECTIONS

KAMPALA  - Uganda's economy is recovering at a faster rate than predicted, with political campaigns as a major contributing factor, according to the trade minister Amelia Kyambadde.

Kyambadde said due to effects of COVID-19 lockdowns and travel restriction, Uganda's economic growth rate, which had dropped (between 2.9% and 3% ) is now recovering at 4.9% of gross domestic product.

She made the remarks during an inspection tour of the Graphic Systems factory in Luzira, Kampala, yesterday.

"The campaign period has boosted our economy because people are procuring a lot of things, which is helping us recover," Kyambadde said. She added that political aspirants are buying T-shirts, stickers, flyers and spending money on fuel, food, construction materials and beverages, among others.

"I see a bright future. We are now recovering faster than expected. We thought it would take us a year or two. Butif the airport and education institutions are opened, we may fully recover by the end of this year," Kyambadde said.

She, however, painted a grim picture of the real estate sector, which she said might struggle to recover with many people doing business online.

"The real estate may be endangered, especially arcades and office buildings. People may shift to working from home and some businesses will be online, meaning fewer people will rent the buildings," Kyambadde said.

Her tour of Graphic Systems was aimed at observing the post-COVID-19 recovery of some industries, to establish how they were affected and how they are recovering.

Commenting on Graphic Systems who are into the printing business, Kyambadde asked them to skill more Ugandans in the sector.

"The printing industry is growing in Uganda and most people are grappling with it downtown because they do not have skills," she said. Kyambadde urged Ugandans to buy Ugandan-made products if they are to develop and build their country.

"Some ministries are still importing products, which can be manufactured here, we are still talking to them to buy from here," she said.

Kyambadde urged Ugandan printing companies to target and prepare for the African Continental Free Trade Area.

The area was created by the African Continental Free Trade Agreement to enable African countries trade within themselves and remove tariffs from 90% of goods.

Graphic Systems managing director Rajesh Chaplot said the COVID-19 pandemic had cut their production capacity to 30%, but has since recovered to 70%.

He, however, decried the erratic electricity supply and lack of trust from some government entities on producing for them work.

He said for the Buy Uganda Build Uganda policy to succeed, the government and Ugandans need to trust local manufacturers.

The company is also among the few that are producing government masks.