Uganda, one of the three African Coface « winners » [fr]
According to a study conducted by the French Insurance Company for External Business (Coface), Uganda is one of three African countries, with Kenya and Ethiopia, whose economies are not much affected by the fall in commodity prices.
In its latest rapport, COFACE which frequently conducts country risk assessments of 45 African countries singles out Kenya, Ethiopia and Uganda.
Uganda: a diversification model
Most sub-Saharan Africa countries are indeed dependent of raw materials, and a fall in their prices will mechanically weaken their economies. If Uganda still continues to earn most of its export revenues from agricultural produce, the country stands out with a diversification strategy soon producing the expected results – in particular in the manufacturing sector. The number of exported products in Uganda is more than one hundred and has more than tripled between 2000 and 2013. Two sectors thus mainly contribute to the economy diversification: the transformation of agricultural produce and textile. Diversification reduces vulnerability and sustains long term growth through better resilience to external shocks.