The discovery of commercial quantities of crude oil in the Albertine Graben basin, located in the west of Uganda near the border with the Democratic Republic of Congo, was made nearly 20 years ago. However, production from this basin is not expected to commence until next year.

Nankabirwa revealed that government geologists are now investigating the oil potential in two new areas: the Moroto-Kadam Basin in the northeast and the Kyoga Basin in the north. Preliminary studies in these regions show promise.

“The ministry is conducting initial exploration studies in the Moroto-Kadam Basin and the Kyoga Basin to evaluate their oil and gas potential,” Nankabirwa said. “Early results indicate that the Moroto-Kadam Basin may have significant commercial oil and gas potential.”

Uganda has five identified basins with suspected hydrocarbon potential, but only the Albertine basin has been extensively explored so far. Within the Albertine basin, the Tilenga and Kingfisher fields are predominantly owned by TotalEnergies (56.7% stake), with China’s CNOOC and the Uganda National Oil Company (UNOC) holding the remainder.

Commercial production has faced delays due to various challenges, including disputes with oil companies over field development and taxation, as well as a lack of infrastructure and funding. Currently, only 72 of the 457 planned wells in the Tilenga and Kingfisher fields have been drilled.

The government is also awaiting a decision next month from Chinese financiers, including EXIM Bank and SINOSURE, regarding funding for the East African Crude Oil Pipeline (EACOP). This 1,445-kilometer pipeline will facilitate the export of Ugandan crude oil through a port on Tanzania’s Indian Ocean coast.

Additionally, oil companies have proposed a liquefied petroleum gas (LPG) facility, for which the government plans to issue a license soon.

Aidoo confirmed that Cocobod will finance the season locally, stating, “We are not taking funds from cocoa traders. The money will come locally. We are going to be self-financing.” This shift aims to save the regulator $150 million in interest costs previously paid on syndicated loans, which last year carried a record 8% interest rate.

Since the 1992/93 season, Ghana has relied on annual syndicated loans for cocoa bean purchases. However, due to challenges including harsh weather from El Nino, rampant smuggling, and swollen shoot disease, the country faced one of its poorest harvests in a decade during the 2023/2024 season.

The new season’s early start is a response to increased smuggling to neighboring countries and aims to counteract the lower-than-expected output. Despite the reduction in target, Ghanaian cocoa farmers are hopeful for a recovery in the 2024/25 season due to improved weather conditions and rehabilitated farms. Aidoo noted that, if necessary, a combination of self-financing and domestic funding will be utilized.

Investors are keenly eyeing Wednesday’s release of South Africa’s July inflation figures for insights into the future monetary policy of Africa’s most industrialized economy. Economists surveyed by Reuters predict that the South African Reserve Bank will reduce interest rates for the first time in over two years on September 19.

Data released earlier on Tuesday indicated a 0.4% month-on-month drop in South Africa’s leading indicator for June, which monitors vehicle sales, business confidence, and money supply.

Globally, attention will also be on the U.S. Federal Reserve’s minutes and Chair Jerome Powell’s speech at the Jackson Hole symposium this week, as markets look for clues on potential rate cuts.

As a risk-sensitive currency, the rand is influenced by both global economic trends, such as U.S. monetary policy, and domestic economic indicators. On the stock market, South Africa’s Top-40 index showed little movement, while the benchmark 2030 government bond experienced a slight increase in yield to 9.285%.

Motorcycle taxis, known locally as boda-bodas, have surged in number across East Africa, but nowhere more dramatically than in Kampala. With an estimated 350,000 boda-bodas operating in a city of 3 million, these vehicles fill a crucial transport gap in the absence of a mass transit system and amid high unemployment.

Boda-boda drivers, who come from various parts of Uganda, often have no other job prospects. “We just do this because we have nothing else,” says Zubairi Idi Nyakuni, a driver who, despite holding advanced degrees, struggles with job scarcity.

The boda-boda sector is largely unregulated, and attempts to control it have faced resistance from drivers and frustration from city authorities. The influx of young, unemployed men seeking income has made it difficult for the government to enforce regulations without provoking unrest.

Charles M. Mpagi of Tugende, a company that finances boda-boda purchases, notes the lack of alternative opportunities for Uganda’s youth, who make up about 76% of the population. Unemployment has risen from 9% in 2019 to 12% in 2021, with youth unemployment even higher.

President Yoweri Museveni has historically supported boda-boda drivers as political allies, leveraging their visibility and influence. The term “boda-boda” originated from the 1970s when drivers transported smugglers across borders.

Today, boda-bodas are essential for daily tasks, from school runs to medical emergencies. However, they are also linked to crime and accidents. The number of fatal motorcycle accidents in Uganda rose from 621 in 2014 to 1,404 in 2021.

Despite ongoing efforts to regulate the sector, enforcement is challenging due to the sheer number of boda-bodas and their drivers’ non-compliance with traffic laws. Efforts to establish official stands and improve road safety have had limited success.

Recent policy changes, including a reduction in the licensing fee from nearly $100 to about $35, aim to make it easier to join the industry. With new motorcycles costing around $1,500, many drivers acquire them on credit or through bulk purchase schemes. The high cost and pressure to maintain their bikes create financial strain, often leaving drivers like Innocent Awita struggling to make ends meet.

Awita, who dropped out of school in 2008, faces daily pressure to pay for his bike and cover operational costs. “Sometimes I work for days without earning enough, but if I get something, it can save my life,” he says.

In Kampala, boda-bodas are both a lifeline and a symbol of the city’s complex challenges, embodying the intersection of economic necessity and urban disorder.

The drought, which started in early 2024, has hit crop and livestock production, causing food shortages and damaging the wider economies.

Heads of state from the 16-nation Southern African Development Community (SADC) were meeting in Zimbabwe’s capital Harare to discuss regional issues including food security.

Some 68 million people, or 17 percent of the region’s population, are in need of aid, said Elias Magosi, SADC executive secretary.

“The 2024 rainy season has been a challenging one with most parts of the region experiencing negative effects of the El Nino phenomenon characterised by the late onset of rains,” he said.

It is Southern Africa’s worst drought in years, owing to a combination of naturally occurring El Nino – when an abnormal warming of the waters in the eastern Pacific changes world weather patterns – and higher average temperatures produced by greenhouse gas emissions.

Countries including Zimbabwe, Zambia, and Malawi have already declared the hunger crisis a state of disaster, while Lesotho and Namibia have called for humanitarian support.

The region launched an appeal in May for $5.5 billion in humanitarian assistance to support the drought response, but donations have not been forthcoming, said outgoing SADC chair Joao Lourenco, President of Angola.

“The amount mobilised so far is unfortunately below the estimated amounts and I would like to reiterate this appeal to regional and international partners to redouble their efforts… to help our people who have been affected by El Nino,” he told the summit.

The drought is a major talking point at this year’s summit, alongside issues such as the ongoing conflict in eastern Democratic Republic of Congo, which Lourenco said was a source of great concern.

This follows allegations made by Aliko Dangote, President of the Dangote Group, who accused certain “mafias” of trying to sabotage his $20 billion refinery project. In an interview with the Financial Times, Obasanjo suggested that if the refinery succeeds, it could boost investment from both Nigerians and foreigners.

Officials from the Dangote Group recently expressed their frustrations, claiming that international oil companies obstruct the refinery’s operations by either refusing to sell crude oil or charging up to $4 above the standard price. They also accused the Nigerian Midstream and Downstream Regulatory Authority of intentionally issuing licenses to individuals for importing contaminated fuel. In response, the regulator denied these claims, saying that Dangote’s diesel was inferior compared to imported ones.

The new directive came five months after Kenyan clearing and forwarding agents moved to court to compel South Sudan authorities to suspend introduction of a second cargo tracking seal.

Now, Juba has directed East African countries to comply with immediate effect.

In a notice issued on August 13, Dr Daniel Kon Ater, the South Sudan Revenue Authority (SSRA) Commissioner for Corporate Services informed all stakeholders in Uganda, Kenya and Tanzania to tag goods destined to their country, alongside the requisite Electronic Cargo Tracking Note (ECTN).

SSRA said all taxpayers, clearing and forwarding agents and transporters, including non-governmental organisations involved in moving cargo destined to and from South Sudan, should attach South Sudan regionally recognised electronic cargo tracking seal.

Speaking during the Kenya Private Sector Alliance (Kepsa)-EAC Secretary-General Roundtable in Nairobi on Wednesday, EAC boss Veronica Nduva said the stays were distorting trade within the region.

The existence of numerous stays of application and countries’ duty remission is an impediment to the intra-EAC trade, she said, as the finished products that benefit from these measures cannot access the regional market at preferential tariff treatment.

This is due to the fact that all finished products that benefit from a country’s duty remission once sold in the EAC Customs Territory attract duties, levies and other charges provided in the EAC Common External Tariff (CET).

“Partner states are still requesting stays of application. This has meant that we have a distortion to the common instruments (of the CET) that were adopted by all partner states,” Ms Nduva said.