As almighty dollar soars, livelihoods crush in Kampala

What the report says

Kampala traders and producers are feeling the strain of a sharply stronger U.S. dollar, according to The Observer, with the paper centering the experience of Kikuubo trader Proscovia Nanyonga. She said the shilling price of a dollar rose from about Shs 3,800 in August to more than Shs 4,400 by late October, making it harder to pay suppliers and restock goods. The article describes the exchange-rate move as a pressure point that is raising costs for fuel, transport, medicines and household items across Uganda.

The Observer says the currency slide is being debated as both an economic and policy issue. Bank of Uganda governor Michael Atingi-Ego is quoted rejecting claims that a newly cited sovereignty law drove capital outflows, and instead blaming a widening current account deficit and weaker portfolio inflows. The report also points to strong demand for foreign exchange from importers and energy purchases, along with state borrowing and infrastructure spending, as part of the broader backdrop.

The story contrasts official export optimism with conditions on the ground. It notes that gold export earnings rose sharply, but argues that the gains may not be supporting the domestic currency in a lasting way. It also highlights coffee farmer Juma Masaba on Mount Elgon and importer Ibrahim Ssewankambo in Kampala to show how higher input costs, expensive credit and imported goods are squeezing both agriculture and trade.

More broadly, the piece suggests Uganda’s challenge is not just a short-term currency swing but a structural problem: export earnings, imports, credit conditions and public investment are not aligning in a way that protects small businesses and consumers.