Business confidence drops to 81% amid power, tax challenges
Uganda’s private sector confidence has taken a downturn, with the latest report from the Economic Policy Research Centre revealing a drop in the Business Climate Index to 81% in Q2 2024. The decline is attributed to persistent power outages, tax compliance burdens, and the enforcement of the EFRIS system, which has negatively impacted 51% of businesses. Notably, 65.5% of affected firms reported increased operational costs, while 34.5% experienced reduced sales, signaling mounting pressure on micro and small enterprises that form the backbone of the economy. Betty Ndagire reports.
