Closure of the Rwanda-Uganda Border and the delay in seasonal rainfall affects the business climate

 Closure of the Rwanda-Uganda Border and the delay in seasonal rainfall affects the business climate

The Business Climate Index (BCI) declined by more thanThe Business Climate Index (BCI) declined by more thaneleven basis points from 107.02 in the previous quarter(October-December 2018) to 95.61 in the current quarter(January-March 2019). The above changes were largelydriven by deterioration in performance in the agricultureand service sectors. Business perception in the agriculturesector was affected by closure of the Rwanda-Ugandaborder and delay in onset of seasonal rainfall in most partsof the country. The negative effects of unfavourable weatheron business climate were exacerbated by poor perceptionsof labour availability, decreasing profits, reduced businessactivity, underutilization of capacity and unfavourable overallbusiness environment during the quarter. Nonetheless,perceptions about future business sentiment (April – June2019) indicate improvement in business performance largelydriven by anticipated increase in profits, new businesses,capacity utilisation, decline in input costs, increase productcost, and general business optimism. Business sentimentsacross all sectors is to remain above potential in next quarter(April –June 2019).

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Created Date: 07-24-2019
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