Trump And The Economy

Economists and traders have warned that some of the Trump policies in trade, immigration among others could negatively impact global economy in which Uganda is a player.

These however say, that the quicker African Leaders seek for alliances and stronger economic trade Ties with US, the better for their economies since the Trump Vance Administration has returned to merely continue with its policies some of which may not be palatable for the growth of African Economies Uganda inclusive

As Donald J trump takes oath as a 47th President of the United States, global economies are set to experience in various aspects such as in forex inflows, diaspora remittances, taxation, movement of Labor among others that could either make, burden, or break them at least for the period he will reign supreme as US President.

This is anchored on a number of promises he has made to implement in his first 100 days in office. While on his campaign across the various states in the US he consistently promised” raising tariffs for the good of America”

These words though said from many miles away have a direct bearing on a Ugandan who relies on a trade as a vocation and an ordinary consumer like you and I.

Here in Downtown Kampala traders go about their business like its business as usual. However, they carry with them some worries as ISA Ssekitto the Spokesperson KACITA explains

‘We have been anxious, nervous and not at ease ever since Trump was elected ad President in November because of his consistent disregard for Africa “

The new Administration, in the US also threatens to frustrate China using tariff hikes, Sekitto says that it is simply impossible to wish away China from global trade since China is deeply rooted especially in African.

For this reason, he asserts Uganda’s suspension from AGOA has not bitten hard. Traders are however not so desperate to have Uganda reinstated. Ssekitto however says that America ought to seek for partnerships in Africa

“Africa and Uganda for that matter is still rich in raw materials that America can’t produce, DRC for example is rich in minerals and when you cross over here to Uganda, we have trees you can’t find anywhere in the world, plus Arabica Coffee. America needs these to build her economy.”

The Trump Vance administration believes in the Making America Great Again through increasing of the US exports to the global market while keeping the imports on the low.

This would mean great changes to the value of the dollar against global currencies including the Ugandan shilling this might affect Uganda adversely

Since he was elected as the President, the US dollar has been strengthening against other global currencies, and when this happens, interest rates in the US will hike, attracting offshore investors who will all run to the US to invest. It also means, that the Dollar denominated Debt Uganda has will increase.”

Concessional financing for Uganda especially from the World Bank and IMF is also feared to reduce since the tone from the top seems dismissive of African nations.

“The Bretton Woods Institutions like the World Bank and IMF are pretty much listen from Washington DC and the note set here is that dismissive.”

However, Kaboyo says that it’s not all doom and gloom as Uganda will now face less resistance in her Oil and Gas production

“On the Pro side, Uganda which has been entering commercial oil production is now at a great advantage since Trump is not pro divestiture in the fossil fuel sector, he even threatened to pull out of the Paris Agreement “

Uganda finds herself at a very critical point as the new administration takes office in a political year where Foreign Direct Investments slow down and remittances that have previously been on highs of 1.49 billion in 2024 may go down due to the strict immigration policy and looming deportation of illegal immigrants into the US.

While its still early to tell, worries for every Ugandan businessman remain on the horizon