Uganda has emerged as Africa’s strongest performer in private sector activity, overtaking Nigeria after the West African economy slipped back into contraction.
According to the latest Purchasing Managers’ Index (PMI) surveys by S&P Global, Uganda maintained its expansion streak for the 12th consecutive month. While its headline PMI eased slightly to 52.6 in January from 54.0 in December, it remained above the 50-mark that separates growth from contraction, showing that private sector momentum remains strong.
Business output in Uganda continued to grow, supported by stronger customer demand, targeted marketing initiatives, and job creation. Firms were also able to clear backlogs, reinforcing operational stability.
Meanwhile, most other major African economies experienced slower growth at the start of the year. Nigeria, after 13 months of expansion, saw weaker demand and slower output, while Egypt and Ghana also recorded declines. South Africa was an exception, showing early signs of stabilisation as firms increased purchasing and rebuilt inventories.
Economists say Uganda’s performance highlights its rising prominence as a private sector leader in Africa, even amid a more cautious regional economic outlook.
