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Desk study of the economic cycle in Uganda

In many countries and regions with which Sweden has bilateral development cooperation, there is often a lack of access to finance as a barrier to development. Lack of risky capital can be a crucial limitation in basically all areas of performance in a strategy. 

In this context, Sida has contracted FCG Sweden under the Framework Agreement: Agriculture, Employment and Market Development to carry out a Desk study of the economic cycle in Uganda.The aim of the study was to give a clear picture of the financial sector in the macroeconomic system, as well as obstacles and shortfalls of it, with the following two-fold sub-objectives:

1.    Provide an overall description of the Ugandan financial system, including aspects relevant for MSMEs. The description should be accompanied by one or two illustrations.

2.    Analyse obstacles and limitations for men, women, entrepreneurs and MSME: s in accessing financial services. This analysis should relate to Sida’s Result Strategy for Uganda sub-objective 2:

a) Strengthened competitiveness among producers and suppliers of goods and services,

b) Increased productive employment opportunities for women and young people,

c) Increased access to and control of productive resources for women.

The study will serve as a basis for discussions with stakeholders in the country on how Sida can effectively contribute to poverty reduction from a holistic poverty perspective and what the credit market may have for the market economy and MSMEs to develop into competitive players in the Ugandan economy, starting from the performance strategy's goal of :

  • Strengthened competitiveness among manufacturers and suppliers of goods and services
  • Increased opportunities for productive employment for women and young people
  • Increased access to and control over productive resources for women
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