Uganda and COVID-19: Macroeconomic Policy Responses to the Pandemic

This briefing analyzes the macroeconomic policy responses of the Ugandan government to the COVID-19 pandemic, evaluating the impact of expansionary fiscal and monetary measures on the real, monetary, external, and fiscal sectors, as well as on poverty levels.

• The Ugandan government implemented a variety of containment measures to stop the spread of COVID-19, including the closure of schools and non-essential businesses, land-border restrictions, evening curfews, and a 14-day mandatory quarantine for travelers from affected countries.
• To counter the economic impact of lockdowns, Uganda adopted expansionary monetary policies, which included reducing the central bank rate and the reserve requirement ratio, and directing supervised financial institutions to defer dividend payments.
• The pandemic caused a significant drop in real GDP growth, falling from 6.8% in FY 2018/19 to 2.9% in FY 2019/20. The industrial and services sectors were the most affected, with growth dropping to 2.2% and 2.9% respectively, while the agriculture sector remained more resilient at 4.8% growth.
• COVID-19 containment measures led to a sharp increase in poverty. The World Bank estimates that the number of people living below the poverty line in Uganda rose from 8.7 million to 11.7 million, a 34.5% increase. Micro, small, and medium-sized enterprises (MSMEs), which employ over 3 million people, were severely impacted.
• The external sector saw an improvement in the current account deficit, which dropped from 7% of GDP in FY 2018/19 to 6% in FY 2019/20, primarily due to reduced imports. However, tourism receipts fell from 3.5% of GDP in FY 2018/19 to 2.4% in FY 2019/20 due to the closure of airspace.
• Fiscal deficits increased from 5% of GDP in FY 2018/19 to 7.5% in FY 2019/20, driven by higher government spending and a drop in tax revenue collection from 12.4% to 11.6% of GDP. This resulted in a 21.7% increase in public debt, rising from $12.55 billion to $15.27 billion.
• The government launched the Emyooga Fund, a poverty-eradication scheme valued at UGX12 165 billion ($45.2 million), to mitigate household poverty.

APA

Okumu, I. M., Kavuma, S. N., & Bogere, G. (n.d.). Uganda and COVID-19: Macroeconomic Policy Responses to the Pandemic. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2021/12/11-CoMPRA-11-okumu-kavuma-bogere.pdf

Chicago

Okumu, Ibrahim M, Susan N Kavuma, and George Bogere. Uganda and COVID-19: Macroeconomic Policy Responses to the Pandemic. South African Institute of International Affairs, n.d. https://saiia.org.za/wp-content/uploads/2021/12/11-CoMPRA-11-okumu-kavuma-bogere.pdf.

Wikipedia

{{cite report |last1=Okumu |first1=Ibrahim M |last2=Kavuma |first2=Susan N |last3=Bogere |first3=George |title=Uganda and COVID-19: Macroeconomic Policy Responses to the Pandemic |publisher=South African Institute of International Affairs |url=https://saiia.org.za/wp-content/uploads/2021/12/11-CoMPRA-11-okumu-kavuma-bogere.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{okumunduganda, author = {Okumu, Ibrahim M and Kavuma, Susan N and Bogere, George}, title = {{Uganda and COVID-19: Macroeconomic Policy Responses to the Pandemic}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2021/12/11-CoMPRA-11-okumu-kavuma-bogere.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }