Top 5 Business News Stories from Uganda in 2021
Uganda, the pearl of Africa, is known for its varied cultures, breathtaking landscapes, and fertile grounds. Being an agricultural country, the majority of its citizens rely on farming for their livelihoods. However, the country has been making strides in the economic sector, with the government putting in place measures to attract foreign investors and boost local businesses. In this blog post, we’ll highlight the top 5 business news stories from Uganda in 2021.
1. Uganda Launches a National Car
In February 2021, Uganda unveiled its first national car, the Kiira EVS, manufactured by Kiira Motors Corporation. The electric vehicle is made with 90% local materials and has a maximum speed of 80 km/h and a range of 300 km. The Kiira EVS is a significant milestone for Uganda, as it is a step towards becoming an industrialized country. The government plans to invest more resources into the automotive industry, creating employment opportunities and increasing revenue.
2. MTN Uganda Sells Off its Towers
MTN Uganda, the country’s leading telecommunications company, announced in April 2021 that it would sell off its entire mobile phone network towers to American Tower Corporation. The sale was part of MTN’s strategy to focus on core business operations and reduce operating costs. The deal was worth $194 million and included 1,233 towers spread throughout the country.
3. Uganda’s Digital Loan Market Grows
The digital loan market in Uganda has been growing in 2021, with more people accessing loans through mobile phones. The market is highly competitive, with various lenders offering different products to attract customers. In June 2021, the Bank of Uganda issued new guidelines for digital lenders, ensuring that they adhere to minimum requirements such as transparency, fair pricing, and data protection.
4. Stanbic Bank Supports Small and Medium Enterprises
Stanbic Bank Uganda announced in May 2021 that it had set aside 1 trillion Ugandan shillings ($280 million) to support small and medium enterprises (SMEs) affected by the COVID-19 pandemic. The bank’s support included reduced interest rates and loan installment payments, among other measures. SMEs play a significant role in Uganda’s economy, contributing over 90% of the private sector.
5. Uganda Joins the Oil Producers Club
After years of exploration, Uganda has finally joined the club of oil producers. In April 2021, the French oil company Total and its partners started constructing a $3.5 billion oil pipeline, running through Tanzania, to transport crude oil from the Albertine region to the Tanzanian port of Tanga. The pipeline is expected to create employment opportunities and boost the country’s economy.
Conclusion
In conclusion, Uganda has been making significant strides in the business sector, despite the challenges posed by the COVID-19 pandemic. The launch of the Kiira EVS and the entry of Uganda into the oil producers club are clear indicators of the country’s potential. With more support for SMEs and favorable investment conditions, Uganda is poised to become a force to reckon with in Africa’s business landscape.
