As Uganda celebrates its Independence today (09-10-1962), we decided to take an in-depth look at the country with an influence in the Eastern African block.
We cannot look at Uganda without acknowledging China’s impressive presence in the region, accounting for numerous infrastructural projects and economic activities. China has been showing a strong willingness to take more ambitious risks associated with the countries resources. Showing strong commitment through signed deals to develop Uganda’s oil, minerals, and energy industries.
- Sinohydro, is preparing the grounds for the construction of a US$2.2 billion hydroelectric dam with 600MW capacity.
- China National Offshore Oil Company (CNOOC), received the first Oil Producing License to develop a US$2billion field with a reserve of 196 million barrels.
- Tibet-Hima, is set to invest US$175 million into reviving copper production at Kilembe.
Like most nations, Uganda has some pressing challenges – Insecurity and Inflation fears!
The government has been battling with the Al-Shabaab terrorist group which has continued to hit targets in the country, capturing territories and stretching the country’s military. In a bid to curtail terrorism, more resources are being deployed to keep the peace. Funding a military campaign comes at the expense of the governments purse, which is already in a deficit. Stephen Kaboyo, managing director of Alpha Capital Partners commented that “the current account deficit still remains a challenge with potential to cause instability on the currency going forward”
In the mist of these balancing act, investors will be keeping a close eye on the government’s plans. Therefore, we should be expecting more investor involvement in influencing Ugandan politics to ensure stability.