Prof. Augustus Nuwagaba, Deputy Governor of the Bank of Uganda, has called for a new economic approach to tackle inequality and unlock Africa’s growth potential.
Speaking on the continent’s economic future, Prof. Nuwagaba said Africa’s dependence on aid has failed to address poverty despite receiving US$64.8 billion in 2021 and US$60 billion in 2023. “The issue isn’t about aid; it is about trade and fair economic policies,” he said.
He argued that global economic governance systems remain tilted against Africa, with market barriers imposed by developed nations restricting the continent’s access to international markets. He urged governments to pursue fair trade agreements to boost growth and development.
Using Uganda as an example, Prof. Nuwagaba noted that despite keeping inflation under control, the country’s economy remains fragile. He emphasized the need to strengthen exports and add value to local products. “The entire coffee value chain is estimated at US$136 billion, but Uganda registered only US$2.1 billion in FY 2024/25,” he said.
Prof. Nuwagaba also highlighted the importance of equipping individuals with skills and affordable capital to stimulate economic activity. He said building human capital and supporting entrepreneurship in high-growth sectors is essential for long-term competitiveness.
“We’re not just saying redistribute wealth,” he stressed. “We must create wealth by investing in high-growth sectors and promoting entrepreneurship based on enhanced competitiveness.”
