• Motorcycle production would be a more feasible option for establishing a Ugandan autos production industry due to the relative ease at which production can be set up compared with passenger and commercial vehicles.
• High motorcycle ownership rates in Uganda and across the East African region provide ample demand for motorcycles produced in Uganda

Key View

• At Fitch Solutions, while we have lowered our average inflation forecasts to 4.1% for 2019 (down from 5.1% previously) and 5.4% for 2020 (from 5.6%), we maintain our expectation for price growth to accelerate over the coming quarters as food and fuel prices gradually rise.
• Our core view is for accelerating inflation to see the Bank of

Key view:

• Uganda has launched its second competitive bidding round for oil and gas exploration, with five new blocks up for grabs in the Albertine Graben basin.
• We expect international oil companies to show more interest than during Uganda’s previous licensing round, supported by higher oil prices and a relatively attractive investment climate

Key View

• We at Fitch Solutions expect support from public investment in infrastructure to see Uganda’s economic growth continue to outperform many of its regional peers over the coming quarters.
• However, we expect dry weather conditions weighing on output in the agricultural sector will underpin real GDP growth slowing from 6.1% in 2018 to 5.6%

News: The National Environment Management Authority (NEMA) in Uganda has approved construction of the USD180mn New Kampala Port at Bukasa in Kira town, Wakiso District. The approval comes even though a review indicated that the 4.65sq km project will need dredging part of Lake Victoria. 'The total area and volume of sediments to be dredged is

Key View

• We at Fitch Solutions believe the Ugandan government’s tough approach to handling political dissent will keep social tensions and risks of unrest elevated over the coming years, particularly in the run-up to the 2021 general elections.
• Our core expectation is that the structural advantages held by President Yoweri Museveni and the

News: The government of China has signed a CNY1.45bn (USD212.67mn) loan agreement with the Ugandan government to support a rural electrification programme in the African country. The scheme will cover the distribution network infrastructure construction of the government and the surrounding areas of 287 sub-counties in the country. The funding will

Key View:

• Following a policy interest rate hike from 9.00% to 10.00% in October 2018, the Bank of Uganda will refrain from further monetary tightening until H219 so as to not weigh on demand and economic growth.
• From our previous expectation for the BoU’s Central Bank Rate to be held at 9.00% through to the end of 2019, we now expect the rate