With the effects of the Corona Virus on the world economy being felt, one wonders how bigger the virus would affect the domestic economy. Uganda is a market to China and many other countries affected by the corona virus so; how long before we turn to other options for our imports given the shortages in supplies from the affected countries. We have time and again ignored domestic producers given the fact that we are capable of producing most of the imports from China and this could be a blessing in disguise for local producers.
One of the industries hit severely by Covid-19 is the aviation industry and with Uganda having one of the world’s youngest airlines, the disaster couldn’t have come at a worser time. Less travellers will increase the costs of operation which will eventually lead to the cancellation of some routes.Uganda Airlines currently flies regional routes and with most of the countries in the region having few cases of the virus, the numbers in passangers haven’t really plunged but with a comfirmed case in Nairobi, we must now accept the fact that the numbers will greatly fall given Nairobi is our biggest market.
Tourism has also been greatly affected and it is arguably the most affected industry since most of Uganda’s tourists are foreign. One wonders what the government has planned to minimise the effects on the economy.
The Financial Watch 