Impact of Ugandan Elections on Business in Uganda and in East Africa

Ugandans will be going for their general elections on Thursday where they will exercise their democratic right of electing their country’s president. These coming elections, however, have been termed by economic analysts as casting a dark clouds over the general appearance of Uganda’s business now and in the future.

The current sitting head of state, Yoweri Kaguta Museveni has been in power for 30 years and is seeking a re-election to extent his 30-year rule for the next five years in what has been termed as one of the hotly contested elections in Uganda’s history. The main battle is now between three individuals; the incumbent President Yoweri Kaguta Museveni, Dr. Kizza Besigye and Mr. Amama Mbabazi.

Already some political analysts are prophesying blood if President Museveni will refuse tp relinquish power if the opposition will think that it has won. On Monday, teargas cans flew all over major towns with shots being fired in the air when the leader of the opposition Dr. Kizza Besigye was arrested and detained briefly by the police while he tried to make his way to the Kampala Central Business Department for a planned rally.

On Monday, most businesses closed down and now business stakeholders are worried and dreading with care as the day for the elections nears. The banks, insurers, importers and exporters are concerned about the outcome of the general elections in Uganda as the situation has now been described as very volatile.

There are concerns that this election might end in war and, therefore in the process disrupt businesses in Uganda and in the neighboring countries. Uganda is a very important ally to the East African Region especially Kenya. Being a landlocked country, Uganda gets most of its goods from other countries through the port of Mombasa. Kenya also exports most of its goods to Uganda as Uganda also does the same to Kenya with the much publicized and much politicized deal between Kenya and Uganda being that of Sugar and Milk deal where Uganda was to export sugar to Kenya and Kenya export milk to Uganda.

Already war is going on in Burundi after the incumbent Pierre Nkurunzinza failed to honor the constitution and decided to run for a third term in office. Yoweri Museveni already dismissed the dream of term limits in Africa and most specifically Uganda.

The Daily Monitor in Uganda reports that according to the government, there is no better time for investors to “risk” their investment than now as they will be guaranteed of good returns on their investment. “Investors, both foreign and local, do not have to worry because we are seeing (investor) confidence growing in our economy irrespective of being in the midst of political (election) season,” secretary to the Treasury Keith Muhakanizi said in an interview.

Article by Juma Fred.