Covid-19: Prioritise funds to limit impact of lockdown

What is your perspective regarding Covid-19’s impact on Uganda’s economy?
The effect of Covid-19 on Uganda’s economy has been happening in stages. The first impact was the disruption of the global supply chains as a result of the closure of factories in China.

This had an immediate impact on the trade and retail sector of the economy considering that nearly 20 per cent of all the goods traded in this sector are imported from China.

The second impact came when the Government announced a restriction, and later a total ban on all inbound and outbound international flights. This hit the tourism industry hardest in particular, the hotels and hospitality sector, travel and tour agencies, and airlines.

The third impact came with the announcement of the total lockdown. This has brought the country’s economy to a standstill. As a result, the economy is currently facing both a supply and demand shock and this is constraining economic activities in the country. It will hurt the economy both in the short and medium term.

How will Uganda get out of this situation?
The Covid-19 is primarily a health crisis but it is already having far-reaching economic and social impacts on the country. It is disrupting millions of Ugandans’ livelihoods, with a disproportionate impact on poor households and small and informal businesses. Getting out of this situation will require both short term and long-term measures.

In the short term, other than saving lives, the other priority for government should be to provide support to poor households who are suffering most from the current lockdown.

This will require providing food items to the most vulnerable populations, as well as securing their food supply chains, especially with respect of essential household foodstuffs and consumer goods. To achieve this, there will need to be an intense and well-coordinated collaboration between the Government through its Covid-19 Task Force, the private sector and development partners.

In the medium to long term, and considering the expected decline in tax revenue, the Government will need to prioritise its limited resources to sectors that will have an immediate impact on the economy as well as protect jobs and livelihoods.

This will require a massive reduction in non-essential public spending and focus public expenditure on measures that will boost consumer expenditure, stabilise supply chains, and protect jobs and help businesses survive.

Government will need to act very fast to inject liquidity in the economy, and to do this effectively, they will need to have very active involvement and support of the private sector.

What is the role of the business community in helping the country get out of this crisis?
The first responsibility of any business leader in the current pandemic is to ensure the safety and wellbeing of its employees. This must be done to ensure business continuity.

Beyond ensuring the safety of their employees and survival of their business, the business community also has a critical role to play in supporting the government in tackling the pandemic and its impact on the economy.

The business community has been very supportive to the Government so far. Business leaders are working very closely with the Government Task Force to manage and mitigate both the health and economic impact of the pandemic. They have mobilised resources both in form of cash and in kind to support the government’s response to the crisis. Examples of this support include Rwenzori Beverages Limited switching production lines to produce hand sanitiSers to be provided free of charge to our health workers. Nice House of Plastics teaming up with Crest Foam to start producing face masks and other personal protective equipment for our health workers.

Other donations from the business community include free soap, basins and water dispensers to all Police Stations around Kampala by Mukwano Group, 50,000 sanitised masks to the Ministry of Health by Jumia, the installation of hundreds of handwashing stations in Kampala markets by NWSC in partnership with KCCA, an offer of free oxygen to the Ministry of Health by the Roofings Group.

The business community has also set up a National Covid-19 Fund with a bank account in Stanbic bank into which private companies and individuals can make contributions to support the Ministry of Health in its fight against the virus as well as mobilise funds to support the most vulnerable. It is through these initiatives that we shall win the war against Covid-19.
Everything has a positive and negative side to it. Are there any positive impacts from the Covid-19 pandemic on Uganda?
There are a lot of positives that I can already see coming out of the current lockdown. Families are spending more quality time together and using this time to bond. Parents are using this time to get to know their children better and get more involved in their schoolwork and general education and upbringing. Parents are also using this time to teach their children life skills, and housework and all those invaluable skills that they will need in their future life.

The way the business community has responded in supporting the Government in its effort to combat the virus is another positive and it’s a clear testament of the very good community spirit we have in our country.

Often that spirit gets lost in the fast-paced corporate life of trying to win market share, grow sales and maximise profits. This community spirit is also being seen at the local level in communities such as Kiwatule and Mutungo, where residents have gotten together to raise money to support the most vulnerable people in their neighbourhoods.

Personal hygiene has also improved as a result of the Covid-19 pandemic and clean hands are now in fashion. I hope this habit will continue after the end of the pandemic.

Without a cure for this virus, and no vaccine, none of us can eliminate the risk of contracting the virus. But we have been advised that eating healthy and keeping ourselves in good shape will help to boost our immune system which should help our bodies fight the virus.
As a result, people are now exercising a lot more by running, walking and cycling on the vehicle-free roads in their neighbourhoods. People are also eating home cooked food which is healthier than mass-produced fast food which people tend to eat during their lunch break at work.

Some people are always complaining that they never have time. If you are one those people, this is the time to do all those things that you never had the time to do before. This is the time to read, pursue a hobby, and learn to play a musical instrument, or consider enrolling for an online course. This is the time to invest in you.

However depressing the current lockdown may make you feel, make the best of it. This time will never come back. Most importantly, stay safe and follow all the Government guidelines and directives.