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UgBriefs > Blog > Economy > The Silent Economic Crisis: How Uganda’s Social Attitudes Are Costing Us More Than Foreign Debt?
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The Silent Economic Crisis: How Uganda’s Social Attitudes Are Costing Us More Than Foreign Debt?

Our Reporter
Last updated: March 10, 2025 2:51 pm
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*Dear Readers*

Uganda’s slow economic transformation is often blamed on corruption, political inefficiencies, and external debt. But beneath these visible challenges lies an even more insidious economic crisis, our own social and cultural attitudes. Our approach to time, priorities, communication, and kinship obligations may be costing the country more than the debt crisis we constantly worry about. If we examined these inefficiencies through an economic lens, the losses would be staggering.

Consider Uganda’s relationship with time. Meetings rarely start as scheduled, deadlines are flexible, and essential decisions are delayed for social reasons. Investors and businesses operating in Uganda often cite inefficiency and unpredictability as key deterrents. Imagine the economic impact of stalled projects because the approval officer is *“attending a burial,”* or businesses losing millions because a critical supplier *“stepped out for a bit.”* In a competitive global economy, time is money, but in Uganda, time is treated as a suggestion, leading to lost productivity and missed opportunities.

Then there’s our cultural approach to money. Rather than prioritising investments or savings, many Ugandans channel their resources into social obligations, lavish weddings, funeral expenses, and ceremonial functions. It is not uncommon for a community to raise millions of shillings for a one-day event yet struggle to collect funds for a borehole or school. While these social functions reinforce community bonds, they do little to create long-term wealth. When vast amounts of money are spent on non-productive activities, economic growth stagnates. Investors observe this trend and hesitate, recognising a consumption-driven rather than investment-driven economy.

Communication, or the lack of it, further exacerbates Uganda’s economic inefficiencies. Business deals, government projects, and service delivery suffer because officials and managers simply do not answer calls or respond to emails. A delayed response might seem minor, but when scaled up, these inefficiencies slow down entire industries. Investors frequently complain about the difficulty of getting timely approvals and clearances, making Uganda an unattractive business destination. In an era where economies thrive on agility and responsiveness, Uganda remains sluggish, losing out on potential economic gains.

Kinship and tribal affiliations also shape economic decision-making, often at the expense of merit and efficiency. Corruption in Uganda is not just about greed, it is deeply rooted in social expectations. A public official does not simply steal; they are expected to *“share”* with their community. Contracts are awarded based on loyalty rather than competence, leading to substandard infrastructure, failed businesses, and wasted public funds. This tribal and kinship-based economy creates inefficiencies that, when compounded, cost the country more than external debt repayments.

Even at the highest levels of leadership, these misplaced priorities are evident. Parliamentarians recently debated a proposal to provide healthcare services, including burial expenses, for former MPs, as if taxpayers should bear the cost of their personal welfare even in death. In a country where millions lack access to basic healthcare, where mothers die in labour due to poor medical services, and where public hospitals suffer chronic underfunding, such discussions expose a profound failure in national priorities. If leaders, entrusted with public resources, believe it is acceptable to prioritise their own comfort over national development, what does that say about Uganda’s behavioural health?

Even at the grassroots level, the same mindset prevails. Communities can mobilise vast amounts of money for grand funerals but struggle to fund essential services like local clinics. The same collective energy that ensures a befitting send-off for the dead could be redirected towards improving the living conditions of the people left behind. But because priorities are shaped by immediate social recognition rather than long-term economic benefits, Uganda remains trapped in a cycle of underdevelopment.

*So, what does this mean for the economy?* If we quantified the financial losses caused by time wastage, inefficiency, poor communication, and misplaced priorities, they would likely surpass the national debt crisis. Unlike debt, which can be managed through restructuring and policy interventions, these cultural inefficiencies are harder to address because they are deeply ingrained.

*Uganda’s economic health is not just threatened by external loans and fiscal mismanagement, it is also crippled by our collective attitudes.* We often focus on corruption and government failures, but the truth is, our economic stagnation is as much a product of our cultural choices as it is of poor leadership. If Uganda is to move forward, it must first acknowledge and address this silent crisis, because no amount of foreign aid or debt relief will save a nation that is bleeding money from within.

Ciao,

Author

*Gertrude Kamya Othieno*
Critical Political Sociologist
Alumna – London School of Economicsgkothieno@gmail.com

Affiliated with *Global People’s Network (GPN)* – A Sociocultural Movement:

*AFRICA’S STRENGTH IS KNOWLEDGE*

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