According to the Bank of Uganda (BOU), in its State of Economy Report for December 2022, this East African country experienced a growth in its Foreign Direct Investment to $474.8m (about Shs1.769 trillion), based on a solid performance from its oil industry. This, by extension, inflated the value of the Ugandan Shilling, which had, for some time during the year, lost some of its value, prior. The Bank also disclosed an 18% slowdown in capital outflows to $227.6m, signaling a return of investor confidence. Exports in Uganda fell substantially, recording figures of about $4.1b while the imports trended in the opposite direction, rising to $7.8b. Conclusively, the bank noted that in the short-term, Uganda’s trade caste would predominantly be driven by a few factors, including geo-political tensions, high borrowing costs, elevated financial vulnerabilities, subdued global growth and movements in global commodities prices.
SOURCE: BUSINESS INSIDER