Christopher Legilisho-Economist at Stanbic Bank.
Uganda’s private sector is defying the odds, showing remarkable resilience in the face of rising utility, rent, material, and staff costs. According to the latest Stanbic Purchasing Managers’ Index (PMI), the sector continues to grow, albeit at a slower pace, with the PMI dipping from 54.1 in May to 51.9 in June.
“The private sector in Uganda is showing remarkable resilience in the face of rising costs,” said Christopher Legilisho, Economist at Stanbic Bank. Strong demand conditions are driving output and employment growth, fueling businesses’ optimism about the future. This confidence is reflected in their investment decisions, as they expand their operations to meet growing demand.
While the rise in input prices poses a challenge for businesses, they are managing to absorb some of these costs and pass them on to consumers. This adaptability is a testament to the resilience of the private sector in Uganda, which is adept at navigating challenging conditions. Looking ahead, the outlook is positive, with businesses expecting further growth in output and new orders – a clear indication of the strength of the economy and the private sector’s resilience.
