The electioneering period in Uganda is not over yet even after the election ended there is still petition in the court of law to challenge the election. This is causing uncertainty in the business market.
The Ugandan economy is facing uncertainty because of the continued election petition and changes in the government structure. Banking industry leader StanBic bank Uganda has indicated that the economy will recover in the long run and that investor confidence is back. Speaking during the launch of smart banking in Kampala the banks CEO indicated that the post election terrain is looking positive and the Ugandans should support the initiatives to improve the overall economic condition of the country. He indicated that there are many investors willing to bring in forex to the country and that the government should come up with incentives to promote the venture.
He further said that it has been a common phenomenon whenever there is an election in the country people tend to pull back. The pulling back is because of the fear of unknown, however this time round the investors did not pull back therefore the economy will return to its original position quickly than anticipated. According to the CEO the inflation level in the country is at a single digit and the currency has not deflated over the years indicates that the economic condition of the country is positive despite the changes in the sector. In the first quarter the economic condition is expected to be tight, however, as time goes by the economy will improve gradually and this will bring change to the economy.
According to Uganda manufacturers association the sector is still holding on until the swearing in of the president. The holding back is derailing economic growth because the country is still at its baby steps economically. Many investors are scared of an unstable political environment.