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UG Standard - Latest News

WEEKLY REVIEW: Uganda grapples with debt, deploys commandos to Juba, struggles with Atiak Sugar project, Lubowa Hospital, as Uganda Airlines takes flight to Europe

Get the latest news from Uganda, including updates on the country's debt crisis, regional security efforts, stalled development projects, and Uganda Airlines' expansion into Europe.

by Juliette Namakula | Assistant Editor
23/03/2025
in AFRICA, ANALYSIS, Business, Community, FEATURES, INVESTIGATION, National, NATIONAL ARCHIVE, News, SPECIAL REPORT
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ganda is grappling with mounting political tensions, military controversy, and economic distress, with recent developments deepening national uncertainty.
Uganda is grappling with mounting political tensions, military controversy, and economic distress, with recent developments deepening national uncertainty.

This week, Uganda found itself navigating a complex web of political disputes, military actions, and economic challenges, each thread pulling the nation further into a state of heightened tension.

The week began with a political bombshell: President Museveni, wielding the power of his X (formerly Twitter) platform, declared the Kawempe North by-election results invalid. The National Resistance Movement (NRM), the ruling party, was immediately thrown into disarray. Inside State House, the Central Executive Committee (CEC) meeting became a battleground, with accusations of opposition-orchestrated electoral irregularities filling the air. Allegations of ballot stuffing, altered results, and widespread violence were leveled, with President Museveni himself citing 50 cancelled polling stations in a statement on X. However, dissenting voices within the NRM, speaking anonymously, argued that valid votes had been cast and declaration forms secured. “Legally, we shall struggle,” one source admitted, “but politically, we have a case.” The cancellation of votes at Kawempe Mbogo, where NRM candidate Faridah Nambi had cast her ballot, became a focal point of contention, with the NRM claiming a significant lead in that heavily populated parish. Adding to the internal discord, Executive Director of the Uganda Media Center, Ofwono Opondo, spoke of “increasingly bad manners” within the party. Despite these internal divisions, the CEC ultimately resolved to challenge the election results in court. The returning officer had stated that only 406 votes were invalid, from a very low voter turnout of 15%.

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Simultaneously, a military deployment ignited a firestorm of controversy. Gen Muhoozi Kainerugaba, the Chief of Defence Forces (CDF), announced via X the deployment of UPDF troops to South Sudan, under “Operation ‘Mlinzi wa Kimya.'” This unilateral move was immediately denounced by members of Parliament, with MP Ibrahim Ssemujju Nganda calling it illegal and a violation of the UPDF Act 2005. Defence Minister Oboth Oboth claimed he was unaware of the deployment, further fueling the controversy. The South Sudanese government, through Information Minister Michael Makuei, denied the presence of Ugandan troops altogether. However, Col. Chris Magezi, acting defence public information officer, stated they acted on request from the south sudan government. The NRM caucus, after being summoned by the president, then resolved to support the deployment, with Government Chief Whip Hamson Obua arguing it was a “peace enforcement” mission, not requiring prior parliamentary approval. Mr. Abdallah Kiwanuka, the Mukono North MP, and a member of the Defence and Internal Affairs Committee, described the UPDF deployment to South Sudan without Parliament approval as unfortunate.

Amidst these political and military upheavals, a silent economic crisis loomed. Researchers at the Uganda Debt Network revealed that each Ugandan now carried a debt burden of Shs2.3 million, stemming from a total public debt of Shs107 trillion. The Ministry of Finance’s figures confirmed the growing debt, with the nation’s debt increasing from Shs86.779 trillion in FY 2022/23 to Shs94.869 trillion in FY 2023/24.

A WFD-organized dialogue saw experts advocating for reduced domestic borrowing and effective oil revenue management. Ms. Peninah Nayiga, the assistant research officer, highlighted that the Shs107 trillion figure, excluding domestic arrears, was higher than the government’s official estimate.

Adding to the economic woes, the conflict in the Democratic Republic of Congo (DRC) forced the Uganda Revenue Authority (URA) to halt truck transit at the Katuna border, crippling local businesses. Establishments like Shine Star Restaurant, Elijah Hotel, and Macro Hardware reported a drastic decline in clientele, with layoffs looming.

The URA commissioner of customs, Mr. Asadu Kigozi Kisitu, issued guidance to stop cargo trucks from proceeding to the eastern DRC via Kigezi because of the existing fragile situation.

The same week, Uganda’s narrative unfolded like a complex symphony, a blend of ambitious projects, simmering anxieties, and the ever-shifting sands of regional politics and economic realities. The nation found itself balancing grand visions of progress against the stark immediacy of pressing challenges.

The promise of a modern Uganda resonated in the hum of railway revitalization. Uganda Railways Corporation (URC) looked to the future, evaluating bids for new locomotives, dreaming of revived trade routes stretching from Tororo to Gulu. This vision, however, was juxtaposed against the harsh realities at the Katuna border, where the DRC conflict had choked trade, silencing the once-vibrant flow of commerce. The aspiration for seamless transportation clashed with the tangible pain of stalled livelihoods.

In the halls of power, financial dealings and political maneuvers painted a portrait of a nation grappling with its economic direction. The Umeme buyout, a high-stakes negotiation, proceeded amidst public scrutiny and parliamentary debate.1 The allocation of funds to projects like the Inspire Africa Coffee factory and the Atiak Sugar Factory ignited fierce public debate, casting a shadow of doubt over the government’s fiscal choices.2 The very essence of economic progress was called into question.

The geopolitical stage crackled with tension. The EU’s sanctions against Rwandan generals and M23 rebels underscored the volatile nature of the region.3 Yet, amidst this tension, a fragile hope emerged from a meeting in Doha, where Rwandan and DRC leaders sought a ceasefire.4 Meanwhile, Uganda’s own military actions, the UPDF deployment into South Sudan, sparked controversy at home, highlighting the delicate balance between regional influence and domestic accountability.5

Within Uganda’s borders, the health and well-being of its citizens remained a critical concern. The Uganda Cancer Institute’s acquisition of advanced technology offered a beacon of hope in the fight against disease. The Swedish government’s support against the Sudan Ebola Virus Disease emphasized the importance of international collaboration.6 However, the persistent use of corporal punishment in schools, as revealed by the Uwezo report, painted a troubling picture of social challenges that remained.

Economic realities pressed heavily on the nation. The NSSF’s call for increased savings highlighted the financial vulnerabilities of many Ugandans. The shift in trade patterns, with South Sudan overtaking Kenya as Uganda’s top export market, signaled a changing regional landscape. Furthermore, the promise of international collaboration took center stage as China reaffirmed its unwavering support for Uganda, contrasting starkly with the uncertainties surrounding Western aid.

Chinese Ambassador Zhang Lizhong emphasized China’s commitment to strengthening ties, highlighting investments in infrastructure, energy, and manufacturing. The burgeoning partnership, fueled by initiatives like the Belt and Road Initiative and zero-tariff trade agreements, signaled a significant shift in Uganda’s economic landscape, offering an alternative to the recently suspended US African Growth and Opportunity Act (AGOA).

However, the pursuit of economic progress was not without its internal friction. In the Bunyoro region, sugarcane farmers found themselves locked in a bitter dispute with millers over private weighbridges. While farmers sought fair compensation for their produce, millers viewed the weighbridges as barriers to their territorial control.

The government’s intervention, favoring the millers, left farmers feeling marginalized and exploited. Similarly, farmers in Namayingo District faced financial ruin after the High Court halted operations at CN Sugar Limited, leaving them stranded with vast fields of unharvested sugarcane. These incidents underscored the challenges of balancing industrial development with the livelihoods of local communities.

Amidst these economic and political tensions, Uganda looked to expand its international connections.

Uganda Airlines announced the reinstatement of direct flights to London Gatwick, marking a significant step in its international expansion. This move, restoring a crucial air link between Uganda and the UK, offered a beacon of hope for increased trade and tourism.

Yet, a darker undercurrent of corruption and violence threatened to undermine the nation’s progress.

In Wakiso District, the National Technological Demonstration Centre (NTDC) project, a cornerstone of Vision 2040, was ensnared in a web of alleged land grabbing and sabotage.

High-ranking officials were accused of colluding to steal land and obstruct the project, casting a shadow over President Museveni’s vision for technological advancement.

Similarly, the brutal murder of a teacher in Mukono, and the subsequent arrest of five suspects, sent shockwaves through the community, highlighting the fragility of security and the persistence of violent crime.

The confluence of these events—the contested election, the controversial military deployment, the crushing national debt, and the border crisis—created a palpable sense of unease.

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Tags: Atiak Sugarborder conflictCorruptionEconomic crisiselection disputeInfrastructure ProjectsInspire Africa CoffeekampalaLubowa Hospitalmilitary controversyMuseveninational debtNRMPoliticsregional tensionsSouth Sudantrade disruptionUgandaUganda AirlinesUPDF deployment

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