What you need to know:
- Uganda has consistently performed well on the World Bank’s Political Stability and Absence of Violence Index, a remarkable achievement in a region known for political volatility.
- A stable political environment allows the private sector to engage in long-term planning and investment with confidence, which is crucial for Uganda’s multi-billion Dollar oil and gas projects and capital-intensive ventures aimed at adding value to its mineral resources.
When President Yoweri Museveni appointed his son, Gen. Muhoozi Kainerugaba, as the top commander of the Army on March 21, it raised a number of eyebrows. However, I believe the President’s decision was timely, forward-thinking, and beneficial for the economy for several reasons.
With the upcoming presidential election just two years away, there was uncertainty regarding whether President Museveni would run for re-election in 2026 or if Gen. Muhoozi’s involvement in ‘political’ rallies nationwide signaled his potential succession. This ambiguity caused confusion among the population, as well as within the army and the ruling party, the National Resistance Movement, regarding Uganda’s future leadership. Such political uncertainty is detrimental to the national economy and investment prospects.
For economic prosperity and to attract foreign direct investment (FDI), predictability is essential. Investors seek certainty and confidence in the future political landscape of a country. Over the past 40 years, Uganda’s political stability has been a cornerstone of its economic development, fostering trust and collaboration between the Government, the Private Sector, and international development stakeholders.
Uganda has consistently performed well on the World Bank’s Political Stability and Absence of Violence Index, a remarkable achievement in a region known for political volatility. Political stability not only attracts investment but also enhances a country’s creditworthiness, making it easier to access cheaper capital for investment.
A stable political environment allows the private sector to engage in long-term planning and investment with confidence, which is crucial for Uganda’s multi-billion Dollar oil and gas projects and capital-intensive ventures aimed at adding value to its mineral resources.
President Museveni’s decision to appoint Gen. Muhoozi as the Army commander strategically reassures both local and international investors of the government’s commitment to maintaining political stability and predictability. This move sends a positive signal that Uganda remains dedicated to providing a conducive environment for continued economic growth and prosperity.
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