The Deputy Governor of the Bank of Uganda, Prof Augustus Nuwagaba, has called for urgent reforms in global economic governance to tackle widening inequality, arguing that Africa’s development will only be achieved through fair trade and inclusive growth models.
Prof Nuwagaba noted that economic inequality remains one of the most pressing global challenges, with Africa bearing the brunt despite being a recipient of billions in aid every year.
He revealed that the continent received US$64.8 billion in aid in 2021 and US$60 billion in 2023, yet poverty levels remain stubbornly high.
“The issue isn’t about aid; it is about trade and fair economic policies,” he said. “Africa needs a restructuring of global economic instruments which are currently skewed against us.”
He pointed out that market imperfections created by developed nations continue to lock African products out of the global marketplace.
To reverse this, he urged African countries to pursue fair trade agreements that spur economic growth and development.
Using Uganda as an example, Prof Nuwagaba observed that while inflation has been contained, projections show it could rise again unless exports are boosted.
He stressed the importance of value addition, citing the global coffee industry valued at US$136 billion, yet Uganda earned only US$2.1 billion in FY 2024/25 from coffee exports.
“We must strengthen our export performance by adding value to our products if we are to maximize returns,” he emphasized.
The Deputy Governor also underscored the need to empower citizens with skills and access to affordable capital to drive productivity.
He said building human capital based on “strategic fit” was essential for wealth creation, noting that entrepreneurship and investment in high-growth sectors must be prioritized.
“Redistributing wealth alone is not the answer,” Prof Nuwagaba concluded. “We must create wealth by investing in areas of competitiveness, fostering entrepreneurship, and ensuring inclusive participation in the economy.”
