Uganda Roundup: Opposition leader sues Uganda and Kenya, central bank keeps key policy rate, improved tourism

Uganda's Central Bank maintains policy rate

Uganda's Central Bank has opted to maintain the Central Bank Rate (CBR) at 9.75% for December 2024. This cautious stance is influenced by various factors, including potential political shifts due to Donald Trump's election and the ongoing conflicts in Gaza. The Uganda shilling has shown a slight depreciation against the US dollar, averaging Ush3,679 ($1) in November. Concurrently, lending rates have seen an uptick from 18.8% in September to 19.4% in October, indicative of tightening monetary conditions. According to Zawya, the economy has witnessed a reduction in quarterly growth, decreasing from 7.1% in March to 6.2% in June 2024. The government's strategy to alleviate domestic borrowing pressures includes sourcing funds from the World Bank, with the performance of tax revenues expected to play a critical role in determining the amount raised. While headline inflation has remained stable at 2.9% for October and November, the decision to uphold the neutral policy rate is aimed at sustaining the stability of the shilling in the short term, although the repercussions of such policy decisions on economic growth may not be realised for up to a year.

Dubai and Uganda sign deal for economic growth

Dubai Chambers has formalised a Memorandum of Understanding (MoU) with the Uganda Chamber of Commerce and Industry. This agreement was forged during a bilateral business forum held in Kampala, aimed at fostering collaboration, facilitating trade missions, and exchanging expertise. The forum underscored the investment potential in diverse sectors such as tourism, agriculture, mining, and technology. Notably, the event attracted representatives from 29 Dubai-based enterprises and received support from various embassies and local organisations. In 2023, non-oil trade between Uganda and Dubai reached a substantial $1.2 billion, further highlighting the increasing participation of Ugandan businesses within Dubai’s Chamber of Commerce, reports Soft Power News.

Uganda allocates Shs177 million to transform Tororo Rock into a top tourist attraction

Recognising the untapped potential of its landmarks, Uganda's Ministry of Tourism has allocated a budget of Shs177 million ($48,314) to revamp Tororo Rock into a premier tourist attraction. This initiative includes a detailed master plan presented to the local government, reports ATTA. Local officials, including James Mboijjana and Mayor Kenneth Orono, have expressed optimism that this initiative will bolster the local economy and stimulate investments in hospitality. The transformation of Tororo Rock is viewed as an opportunity to elevate its significance not only in Uganda but across the African continent.

Uganda promotes birding to attract Asian tourists

To tap into the lucrative Asian tourism market, Uganda is actively promoting its exceptional birding opportunities, showcasing over 1,000 bird species, which represents 53% of Africa's total avian diversity. Lily Ajarova, the head of the Uganda Tourism Board (UTB), underscored the market's potential, projecting a revenue generation of $13 billion by the end of 2024. As reported by, Chim Reports, birding will be a focal point of UTB’s marketing strategy, which will also accommodate the predominantly Muslim culture of the region. Furthermore, employing digital marketing tools is considered crucial for enhancing Uganda's tourism profile.

Besigye sues Kenya, Uganda governments at East African court

Dr. Kizza Besigye, a prominent four-time presidential candidate in Uganda, has initiated legal proceedings against the governments of Kenya and Uganda in the East African Court. He alleges unlawful abduction from Nairobi, claiming that Kenyan security forces collaborated with Ugandan authorities in this extraterritorial operation, which purportedly contravenes both the Kenyan Constitution and the East African Treaty. Following their forcible return to Uganda, Besigye and his aide face military trial on security-related charges, despite their civilian status. His legal representatives contend that military courts do not possess jurisdiction over civilians and assert that the incidents in question occurred outside Uganda's borders. The Citizen reports that Besigye is seeking compensation of $100,000 and a permanent injunction to prevent Kenya from engaging in forced removals in violation of due process.