Agriculture sector performance deteriorates drastically, but businesses remain optimistic about the future

Agriculture sector performance deteriorates drastically, but businesses remain optimistic about the future

The Business Climate Index (BCI) declined by 1.68 points from 90.40 in the previous quarter (April – June 2018) to 88.72 in the current quarter (July – September 2018), remaining below potential. While the service sector index improved, both the manufacturing and agriculture sectors indices declined, with the index for the agriculture sector dropping by 65.16 points. Despite this, business remain optimistic about near-term developments with expectations for next quarter to be above potential. This quarter’s performance was mainly driven by changes in Uganda’s tax policy which came into effect on 1 July 2018, particularly the introduction of withholding tax for agricultural supplies and excise duty for mobile money transactions and over the top services.

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Created Date: 02-27-2019
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