Uganda 

Uganda country policy

Policy established 07 December 2011

• ILC, bank guarantee or central public guarantee (unconditional)
• The country ceiling is 1000 mln euro
• Early warning signal 50 mln euro
• Public buyers: ORIO facility

Country class: 6

Uganda country facts

Atradius Dutch State Business Economic Research

Country Report last updated :  17 October 2011   
Country :  UGANDA 

Political Situation

Relatively Stable

Head of state
President Yoweri Museveni (since 1986, leader of the National Resistance Movement). 

Form of government
Government is dominated by the National Resistance Movement. Since 2005 multi-political party system.

Tensions between different tribes/regions persist.  The occult and ultra-violent Lord’s Resistance Army (LRA) has weakened but the organisation is still active in Northern Uganda.  
 In July 2010 Kampala was the target of terrorists from bomb attacks of Al-Shabab (from Somalia).

International relations

Gradually stronger relations with EAC partners.
Member of
UN, IMF, WB, AfDB, AU, WTO, EAC, COMESA, Commonwealth.  Most important donors are the US, the EC and bilateral donors like UK and the Netherlands.
Internal Economic Situation
Solid Growth

General situation
Strong growth in non-traditional exports like horticulture and fish products, and in communications and manufacturing support economic growth. Growth is expected to be 5.6% this year. Economy characterized by subsistence agriculture and several cash crops (coffee). Communications and manufacturing and in the near future oil exploration, attract considerable inflows of FDI. Severing of trade routes to Kenya, have accelerated inflation. Donors are concerned about the autocratic tendencies of president Museveni, reluctance to fight corruption and high level of government spending on public administration. 
 
External Economic Situation

Good Solvency & Liquidity

Main sources of foreign exchange
Coffee (19% XG), fish (19%), tea (4%), cotton (4%). 

Main foreign markets
EU [42%; Netherlands (10%), Belgium (10%)], Kenya (16%)

Main expenses of foreign exchange
capital goods (27%), petroleum (11%), basic manufactures        (5%), chemicals (11%). 
 
Balance of payments 

High current account deficits due limited export revenues. This deficits are more than balanced by capital inflow.