Efficacy of COVID-19 macro-economic policy responses in Uganda

COVID-19 has caused an unprecedented economic and health shock in Uganda, as has been the case globally. After the World Health Organization announcement that COVID-19 was a global pandemic, the government of Uganda undertook decisive measures to abate the spread of the virus through adopting COVID-19 containment measures. Also, in anticipation of the distortionary effects of COVID-19 on Uganda’s economy through the external and domestic effects channels, the government adopted an expansionary fiscal and monetary policy alongside financial sector interventions

Uganda’s post-COVID recovery strategy & NDC implementation

This paper analyses the climate friendliness of Uganda’s post-COVID-19 recovery strategy and, specifically, its alignment with the country’s targets in its Nationally Determined Contributions (NDCs). The recovery strategy has the potential to provide effective climate change response and meet the NDCs. However, there are several gaps related to the marginalisation of climate action in the economic recovery resource-allocation process, the ability of macroeconomic recovery strategies to advance a genuinely green and resilient economy, and limited fiscal space to invest in a climate-sensitive recovery. The paper concludes with policy recommendations on encouraging a robust economic recovery through actions that champion Uganda’s NDC commitments