The double trouble of fuel prices and depreciating shilling: How do we navigate living  costs, survive and thrive?- By Morrison Rwakakamba 

Every day at the pump feels heavier. Fuel prices have crossed Ugx 7,000 per litre, and the US dollar now trades above Ugx 4,000. 

Across East Africa, Kenya and Tanzania face similar cost pressures, but unique domestic vulnerabilities make the economic squeeze in Uganda particularly sharp.

This double trouble stems from interconnected forces. Externally, geopolitical conflicts and crude supply disruptions keep global energy costs high. 

The lingering impact of ‘Ebola’ travel bans crippled tourism revenues, while economic headwinds abroad dampened diaspora remittances. With foreign currency inflows constrained, the shilling’s purchasing power eroded rapidly.

Domestically, high demand for imported fuel, industrial inputs and other things far outpaces export earnings. Climate constraints further compound this fragility. 

Flash floods damage vital transport routes, while prolonged droughts reduce agricultural yields, cutting coffee export earnings and pushing up food prices for everyday families.

In any economic crisis, the first mandate is to stop the bleeding. The government and citizens must among others take decisive action across three distinct horizons.

Immediate intervention requires the Ministry of Finance and Parliament to temporarily review fuel excise duties to lower transportation costs right away. 

Bank of Uganda must continue targeted foreign exchange interventions to curb currency volatility. 

At the household level, families need to streamline daily expenses by consolidating transit routines, buying essentials in bulk, and prioritizing savings.

Over the medium term, Parliament must channel budget allocations toward social safety nets and agricultural subsidies, including fertilizers and seed distribution. 

Manufacturers should substitute costly imports with regional raw materials and farmers must hedge against weather disruptions by adopting solar-powered irrigation and harvesting rainwater, while processing raw crops locally to capture greater market value.

Looking ahead to long-term transformation, accelerating domestic refining capacity and expanding renewable energy infrastructure will permanently end reliance on imported fuel. 

Pairing these initiatives with climate-resilient logistics and value-added exports will ensure our economy withstands future global shocks.

Uganda can convert this moment of pressure into structural strength if discipline, local production, and smart policy lead the way.

Morrison Rwakakamba

Coffee farmer based in Nyeibingo Village, 

Rukungiri.