COVID-19 and Subsequent Restrictions Damaged Uganda’s Economy – Yusuf Kiranda

“But then Government also took a hit in its revenue collection due to the Covid-19 containment measures and consequently, Government in the current financial year implemented 40% cut on all Ministries, Departments and Agencies (MDA’s) covering non-wage and development expenditures,” Kiranda added

Makerere University Secretary Yusuf Kiranda has said the Covid-19 pandemic and the subsequent lockdown restrictions to prevent the spread of the virus damaged Uganda’s economy, as it did for various other economies around the globe.  Kiranda said the Government had tried its level best and within its means and capacity but probably it had not done enough as the challenges continued.

Speaking at the inaugural Tumusiime Mutebile Annual Public Lecture on Thursday April 28, 2022, Kiranda welcomed the family of Emmanuel Tumusiime Mutebile the former Governor of Bank of Uganda, the key note speaker Ramathan Ggoobi who is a former Alumnus and the Permanent Secretary and Secretary to Treasury to the event and thanked him for accepting to deliver the days lecture.

“Welcome to the second lecture of Mak@100 series and the first Professor Emmanuel Tumusiime Mutebile lecture. I want to welcome Mrs. Mutebile and the family of Professor Mutebile especially. I also thank the PSST. I am aware how tight your schedule is and we do not take it for granted that you have accepted to deliver the first Tumusiime Mutebile memorial lecture,” Kiranda said.

Kiranda further noted that, “we meet to discuss a crucially important subject. The Covid-19 pandemic and the subsequent lockdown to prevent the spread of the virus damaged Uganda’s economy as it did for various economies around the globe.  The African Development Bank reports that the country’s GDP in 2020 dropped by 0.5% after the economy was growing very impressively in 2019 by 7.5%. a lot of the sectors in the economy were severely affected and those most affected were tourism and hospitality, wholesale and retail trade to mention but only a few,” Kiranda said.

The University Secretary said the countries Covid-19 response focused on supporting the health sector to contain the spread of the pandemic and treat those who fell sick, supporting scientists and innovators, provision of agricultural inputs, cash for work programmes, seed funding to small and micro businesses through Emyooga, Social assistance grants to the elderly popularly known as Emyooga, food and cash transfers to vulnerable members of the society, credit to savings and credit cooperatives, credit  to private sector companies through Uganda Development Bank, capitalization of the UDC, and most importantly the decision by Government to priorities the payment of domestic arrears to the private sector domestically.

“But then Government also took a hit in its revenue collection due to the Covid-19 containment measures and consequently, Government in the current financial year implemented 40% cut on all Ministries, Departments and Agencies (MDA’s) covering non-wage and development expenditures,” Kiranda added

He said with the budget cuts by the Government which was the leading player in this economy, the investment or the expenditure by the MDA’s went down especially after key areas like workshops were frozen meaning that hotels where government entities were leading clients could not get business.

Kiranda noted that, “however no sooner had Ugandan’s celebrated the easing of the Covid-19 situation and lockdown than the staggering increase in commodity prices presented yet another daunting challenge to living conditions and business activity especially among small and medium enterprises.” Kiranda said, “what can we do better and how? What can the institutions of Higher Education contribute to this discussion and to the pursuit of economic recovery in Uganda after Covid 19?”

He said this was the question the Public lecture sought to explore. “We are lucky the lecture is going to be delivered by the man in charge of driving economic thinking and economic policy in the country, the current Secretary to the Treasury Ggoobi,” Kiranda said.

The Tumusiime Mutebile Public Lecture will be an annual event which will serve as an intellectual rallying point for scholars, students and the general public by drawing eminent scholars and government representatives from across Africa and the globe in intellectual conversation and discourse that will proffer solutions to crucial issues in building a recovering and resilient economy in Uganda.