BoU: Ugandans Confident Of National Economy


rx geneva; font-size: small;”>The one-year study indicates that businessmen have high hopes for increased production, information pills employment, visit better sales, stock and capacity utilization for their companies.

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Using the Business Tendency Survey approach of economic indicators, the researchers sought from company Chief Executive Officers of different business sectors of their perception on current and near future business conditions including economic activities.

According to Bank of Uganda’s Deputy Director of Statistics Department, Dr. Justine Nannyonjo, the study sampled 300 firms selected from the country’s top 1000 tax payers; out of which 180 were large companies while 120 were small and medium companies.

“Rating responses on a scale of 0-100points, the study findings indicated that over the last 12 months, the business outlook has been generally optimistic at an average level of confidence of 61.5 points,” she said.

This, according to Nannyonjo, is in line with the growth with country’s real gross domestic product which is estimated at 5.1 in Financial Year 2012/13.

This Business Tendency mechanism in the study, – which is currently being implemented in 40 other countries in Europe and Asia, and only three in Africa – focused on key sectors of construction, manufacturing, wholesale, retail trade and services.

The other sectors investigated included agriculture, mining, transport, electricity, insurance, ICT among others.

While disseminating the study results to stakeholders on Tuesday in Kampala, Dr. Nannyonjo said that all sectors sampled were optimistic about business activities with confidence levels ranging from 50 to


Majority of the CEO’s generally revealed that the trading conditions in their firms had improved, and that the future was even brighter.

They also projected a positive outlook for expected volume of total orders placed with supply, as well as a whole buoyant vision of business situation in the coming 3 months.

On average, constructors, manufacturers, wholesalers and retailers averaged 70, 72, 66, and 75.3 points respectively.

This she Nannyonjo attributed to high expectations of continued increases in orders prospects of high production, new lines of production, business boom especially in peak seasons.

She noted that such positive responses are a good sign that the national economy is growing steadily, adding that a decreasing business confidence would imply a slow economic growth as owners are likely to decrease their investments.

“The idea here is that the more confidence business owners and managers feel about the economy, the more likely they are to make more investments.

Makerere University Principle of Economic Research Institute Dr. Lawrence Bategeka, commended the statisticians at Bank of Uganda for their findings.

He however advised them to perk up their sampling techniques and spread the scope of responses to include agriculture which is the country’s largest employer of the populace.


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