A business survey conducted by Uganda Bureau of Statistics (Ubos) on how Covid-19 has affected businesses indicates economic productivity has dropped by 20.7 per cent.
The study, covering the period between March and August, indicates that overall gross output dropped with manufacturing being the most affected.
During the period, about 34.8 per cent and 34.5 per cent of manufacturers operated between 26 and 50 per cent and while 29.4 per cent have partially closed some production lines.
Only 2.1 per cent have introduced new products while 51.5 per cent have reduced their payroll size, the survey indicates.
Mr Chris Mukiza, the Ubos executive director, while releasing the survey findings, said 85.8 per cent of the sectors of the economy have put in place safety measures to mitigate the spread of Covid-19, which highlights how the population perceive the danger the pandemic presents both to human life and the economy.
Gross output for the formal economy excluding finance and insurance services decreased from Shs7.3 trillion in March to Shs5.8 trillion in August.
However, during the period there has been some good recovery especially after lifting the lockdown in June.
For instance, the manufacturing sector has since recovered by 4.1 percent but reported a 42.7 per cent increase in the cost of doing business.
During the period, Ubos noted, use of electricity for lighting increased from 14 per cent in 2012 to now 22 per cent while solar use increased to 18 per cent. The survey also indicates that use of kerosene lamps also known as Tadooba, reduced from 66 percent in 2012 to 28 per cent.
At least 64 per cent of the households, the report found, use firewood for cooking while 30 per cent use charcoal. Only 6 per cent use electricity, kerosene and liquefied gas.
Mr Bill R Nkeeto, Victoria University dean faculty of business management, said the volatility of the global business environment, calls for an equally prepared mind to be in position to thrive under the circumstances.
“This calls for one to be more industrious and innovative in order to succeed when they venture into business,” he said.
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