Uganda's economy is bracing for a slowdown in 2025 as the country prepares for the 2026 general elections, according to experts. Historical data shows that election cycles in Uganda have consistently led to economic uncertainty, reduced foreign direct investment, and a "wait and see" approach from investors.
The research suggests that the upcoming elections will exacerbate the country's current weak financial state, making it even more vulnerable after the polls. This could have significant implications for startups and entrepreneurs in Uganda, who may struggle to access funding and resources during this period.
Experts are calling for economic reforms and an extension of the electoral cycle to allow more time for the economy to recover between elections. This could provide a more stable environment for startups to grow and thrive.
The impact of the elections on Uganda's economy is a cause for concern, particularly given the country's history of economic downturns during election cycles. In 2011, inflation spiked from 5% to 30%, leading to public unrest, and similar economic downturns were seen in 2016 and 2021.
As Uganda prepares for another election cycle, startups and entrepreneurs will need to be prepared for a potentially challenging economic environment. By understanding the historical trends and potential impacts, they can better navigate the uncertainty and find opportunities to grow and succeed despite the challenges.