FDC Blames Sovereignty Act, Trade Deficit for Economic Pressure

What the report says

The Forum for Democratic Change has urged Uganda to rethink policies it says are worsening economic strain, including the Protection of Sovereignty Act and the country’s heavy reliance on imports. In comments reported by Nile Post, party vice chairperson Robert Centenary argued that weak domestic production, foreign-exchange pressure and a trade deficit are leaving households and businesses more exposed to rising prices and external shocks.

The party said the sovereignty law could weaken international partnerships and make it harder for Uganda to support trade, investment and financial links that affect growth. FDC also linked the cost of living to import-related taxes, exchange-rate movements and the high cost of doing business. It did not provide figures to prove some of its claims, and the report noted that no direct causal link was established between the law and the price pressures described.

To respond, FDC proposed more public support for agriculture, manufacturing and agro-processing. Its manifesto pledges to raise agriculture’s budget share to 10% within three years, set up a National Bank for Agricultural Finance, build 150 grain silos and revive cooperatives and the cooperative bank. The party said these measures would improve food security, reduce post-harvest losses and create jobs.

The proposals are part of FDC’s 2026 manifesto, titled "Fixing the Economy; Money in Our Pockets." More broadly, the position reflects an ongoing debate in Uganda over how to balance domestic production, public spending and access to foreign markets as the government faces pressure over prices and growth.