BOTTOM LINE: Uganda must earn more dollars than it spends - year after year
This commentary argues that Uganda's long-term economic stability depends on maintaining a current account surplus by exporting more goods and services than it imports. The author warns against over-reliance on foreign aid, loans, and volatile capital inflows.
Why it matters
It provides a foundational economic perspective on national fiscal policy and the risks of dependency on foreign capital for developing nations.
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The strongest protection is not just raising interest rates or special windows for dollars. It is building an economy that sells more than it buys from the rest of the world
COMMENT | MORRISON RWAKAKAMBA | In simple words, Uganda needs to earn more dollars than it spends, year after year. That is the real foundation of a strong economy.
Think of Uganda’s money dealings with the rest of the world like a family budget. The current account is like your household’s regular income and spending.
Money comes in when Uganda sells coffee, fish, flowers or tourism services to foreigners, or when relatives abroad send money home. Money goes out when we buy fuel, cars, phones, medicine, machinery or other goods from abroad.
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