Business consult by Ab Stuart wa Rugogamu

Handling inquiries on business ventures . Calculated investment opportunities n resource factors.



Save electricity & Enjoy freshly prepared home made juice with the #2fumbe
Call/Watsapp 0775914080 | UGX: 55,000/=


Recession , slump , B o p defeciet etc in our economy


Overall Score: 59
World Rank: 102
Region Rank: 13 of 46
Economic Summary
In the late 1980s, Uganda became one of the first countries in Sub-Saharan Africa to begin liberalizing its economy and introducing pro-market reforms. This effort has stagnated in recent years, however, and despite more than a decade of relatively strong economic growth, the number of impoverished Ugandans has changed little as the population has doubled since 1990.
2016 Economic Freedom Score: 59.3 (down 0.4 point)
Economic Freedom Status: Mostly Unfree
Global Ranking: 102nd
Regional Ranking: 13th in Sub-Saharan Africa
Notable Successes: Trade Freedom and Monetary Freedom
Concerns: Business Freedom and Rule of Law
Overall Score Change Since 2012: –2.6
Corruption persists even though laws and institutions are in place to combat it. Enforcement of Uganda’s intellectual property laws to prevent piracy and distribution of counterfeit products is limited. Much of the population works in the informal sector due to a rigid labor market.
Rule of Law
Although Uganda has a variety of laws and institutions tasked with combating corruption, enforcement is very ineffective. The country’s fiscal deficit is due in part to weak control of public spending. Despite recent high-profile scandals and anti-corruption campaigns, no top government official has been imprisoned for corruption. The rule of law is weak. Up to 90 percent of all landowners lack registered title to their property.
Limited Government
The top individual income tax rate is 40 percent, and the top corporate tax rate is 30 percent. Other taxes include a value-added tax and a property tax. The overall tax burden equals 13.4 percent of total domestic income. Government spending has decreased to a level equivalent to 16.8 percent of GDP. Budget deficits have been expanding, and public debt is around 30 percent of total annual output.
Regulatory Efficiency
There is no minimum capital requirement, but establishing a business still takes more than 30 days. Completing licensing requirements costs over eight times the average annual income. A functioning labor market is not fully developed. The Uganda shilling’s depreciation against the dollar in 2014–2015, coupled with increased public debt and expanded spending in advance of the 2016 elections, is likely to drive up inflation.
Open Markets
Uganda’s average tariff rate is 8.6 percent. Foreign investors may lease but not own land. The government may not expropriate property without providing compensation. Regulatory barriers may discourage investment. Access to financial services has expanded gradually across the country, but the development of a modern financial sector has largely stalled in the absence of needed structural reform. Household incomes will persistently shrink unless serious changes are undertaken


Throughout the West, the triumphalism of the 1990s has given way to deep anxiety. The particulars differ from country to country, of course. But beneath these differences is the shared fear that an epoch is coming to an end.
The policies and institutions that far-sighted statesmen put in place after World War II enabled Europe and Japan to rise from the ashes of war, embrace democracy, and preside over the greatest period of liberty, broad-based prosperity, and peace in human history. But the continuing effectiveness of these institutions is in doubt. The Great Recession shattered complacent assumptions on both sides of the Atlantic. Two decades of economic stagnation, now exacerbated by demographic decline, have left Japan wondering about its future. (Prime Minister Abe’s economic renewal program represents a last throw of the dice for the Land of the Rising Sun.) At the same time, the startling rise of China and equally startling success of Singapore offer alternative models of state capitalism decoupled from democratic governance. As a result, the West has become uncertain of its future.
At first glance, this mood reflects the economic situation rather than broader misgivings about liberal democracy. No doubt the economy is an important part of the story. But the centrality of economic well-being in our politics reflects long-held assumptions about the purposes of our politics. If economic growth and well-being are in jeopardy, so are our political arrangements.
We have known since Aristotle that stable constitutional democracy rests on a large, self-confident middle class in an economic order not riven by extremes of wealth and poverty. For Aristotle, these conditions were a matter of chance good fortune. In modernity, they have become objectives of economic and social policy.
What I will call the liberal democratic bargain has defined the era since the end of World War II. The terms of this bargain are clear: working with elite bureaucracies, popularly elected governments will deliver economic growth with steady reductions in poverty, rising standards of living for all, expanding physical and economic security, and—not least, health care that increases longevity and works toward Descartes’ dream of defeating death with science.
For some, liberal democracy may be an intrinsic good, an end in itself. For the majority, however, it is a means to peaceful, commodious, ever-progressing lives. It is a tree known by its fruit. If it ceases to produce the expected crop, season after season, all bets are off. For a substantial period after WWII, the bargain held, and public support for liberal democracy and its leaders remained high. More recently, the bargain has been called into question, and public support and confidence have waned.
The bargain is being challenged from without: Competition from rising economies outside Europe and North America—some embedded in democratic institutions, others not—has reduced the ability of established economies to maintain high levels of growth and employment. In the 18 nations that make up the eurozone, growth remains anemic, and unemployment stood at 11.5 percent in August 2014, and recent events have triggered fears of a triple-dip recession.
The bargain is being challenged from within as well. Two tensions lurk at its heart. First: taken too far, well-intentioned social guarantees can end up undermining growth and fostering stagnation. For example, countries that make it difficult to fire workers have made it almost impossible for young adults to find jobs. Unemployment in that cohort has risen to depression-era levels—more than 50 percent in Greece and Spain, 43 percent in Italy, and 23.5 percent in the eurozone as a whole. Extended unemployment among young adults has long-term effects on their productivity and earnings. And young adults without occupations—especially those with higher education and rising expectations—are a classic source of political instability.
Consistent with its traditions, Japanese economic policy has focused on maintaining social stability. Subsidies and protectionist barriers protect rural interests. Banks have kept bad loans on their books, locking up capital and sustaining inefficient, unprofitable ventures. The result is weak demand, slow growth, and confidence-sapping deflation. It remains to be seen whether Abe’s reforms will be enough to break this cycle.
On the surface, anyway, the United States is doing somewhat better than either Europe or Japan. After a deep downturn, modest growth resumed in mid-2009, 8 million new jobs have been created since the trough, and unemployment has declined by nearly than four percentage points.
But the United States exemplifies the second tension in the liberal democratic bargain: when most workers fail to share in the fruits of economic growth, the public sector will be hard-pressed to lean against the inegalitarian tide. In the five years since the official end of the Great Recession, wages have only kept up with inflation, while family and household incomes have barely budged off their recessionary lows and remain far below their pre-recession peak. The share of national income going to wages and salaries is at its lowest point in nearly half a century, and businesses have found ways of raising production without hiring more workers, at least in the United States. The majority of workers who have found new jobs are earning less than they did prior to the recession, and the number of people working part-time who want full-time jobs remains very high. Relatively few jobs now being created offer incomes in the middle range: most are in lower-wage services, and most of the rest are in the high-skilled professions that require advanced training. These trends bode ill for the future of the middle class; many parents now doubt that their children will enjoy the same opportunities that they did.
Reuters/Issei Kato - People are reflected on a graph showing the U.S. dollar and Japanese yen rate in Tokyo, July 3, 2013
Economic growth and its vicissitudes
There are four principal necessary conditions for economic growth in modern market economies: private investment, public investment, innovation, and a skilled and growing workforce.
Private investment requires an adequate pool of capital available for this purpose. This may sound trivial, even tautological, but it is not. If governments run large deficits and must borrow to fill the gap, it may consume the capital that otherwise would be available for the private sector. Even if adequate private capital exists, investors may hesitate to make long-term commitments if the context—which includes economic policy—is unpredictable. So nations that run persistently large deficits and cannot reach agreement on how to reduce them may weaken a key precondition for economic growth. Because they must be responsive to public opinion, and because the steps needed to rein in budget deficits are unpopular, democracies may find it harder than do authoritarian regimes to adopt such policies.
Throughout human history, governments have mobilized resources for public investments . Basic economic theory explains why: some kinds of investments—public goods—produce general benefits that private investors cannot adequately capture for themselves. Classic examples include infrastructure and scientific research. Without public goods, commerce becomes more difficult, and growth slows.
Although justified in theory, public investment often goes wrong in practice. Governments often use public projects to deliver benefits for key constituencies whether or not the general public good warrants the expenditures (recall the notorious “bridge to nowhere”). Conversely, because public investments compete with other government programs, they may lose out in the competition for resources. As spending in the United States for programs such as Medicare, Medicaid, and Social Security has soared and preferences have honey-combed the tax code, the share of the economy devoted to public investment has declined—to a level, many analysts believe, that will impede economic growth. As our system of roads, bridges, railways, and ports becomes antiquated and overburdened, the movement of goods slows and the price of transporting them increases.
Many factors determine the pace of innovation. Public and private investments are important, but so is the willingness of society to accept the consequences of innovation. New products can render established products obsolete, reducing demand and throwing people out of work. New processes can reduce the number of workers needed to produce the output the market demands. Innovation typically spurs what Joseph Schumpeter famously called “creative destruction.” But while society as a whole may benefit from this process without knowing, individuals and groups in danger of losing out are acutely aware of what is happening and will mobilize to resist it.
Authoritarian regimes can override this resistance.


"Embataa" as is commonly known ie money borrowing from the informal sector is risky. Do it only if u are assured of ur avenues of returns. God designed our path of growth n he entrusts with us with those resources according to his design


life is a journey n don't mind about my material achievements but the fact is that I have survived.


Expensive introductions and weddings are useless compared to the physical assets that can be acquired using the same amount of money. If u buy a house u can mortgage it an get a loan n start a business but a wife or husband u can't. Buy a pick like that one u can sell any time an u have exclusive rights over it but a woman, ur simply a joker. plz think twice


Tree planting in the name of afforestation has taken a new shape nowadays. With a gestation period of seven years coupled with incentives from NFA assuming a sizable acreage, its worthy a venture. Try out eucalyptus u won't go wrong.


100acres of land in the western Uganda at 200million equivalent of 5double rooms in Kampala. Which one is a viable venture?


Absolute and comparative advantages should be taken care of in today's investment considerations.


Photos from Business consult by Ab Stuart wa Rugogamu's post


Value addition is a key to most successful businesses globally but still lags behind in our country.


Business consult by Ab Stuart wa Rugogamu




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