Free Access | 2024-04-12

How the vandalism of high-voltage electricity pylons affects business operations for firms in Uganda

Authors/Editors: Brian Sserunjogi (PhD) ,  Rehema Kahunde ,  Corti Paul Lakuma

Abstract:

The Business Climate Index (BCI) improved but remained below potential for the twelfth consecutive quarter since the first quarter of 2020. The business perceptions improved by 9 percentage points from 80.1 in the previous quarter (July- September 2022) to 89.3 in the current quarter (October- December 2022). The high input costs primarily drove the below potential performance in business sentiment, high salary demands, labour unavailability, and low business activities primarily driven by the high commodity prices emanating from the harsh climate characterised by drought, increasing the overall cost of doing business in the current quarter. For food crops and related items, inflation remained high. It accelerated to 27.8 percent in November 2022 from 25.6 percent in October due to the dry spell, which kept the prices high, affecting all the economic sectors in Uganda. Meanwhile, business perceptions in the agricultural and manufacturing sectors improved slightly than those in services sectors.