Uganda joins the BRICS bloc, leveraging its agricultural strengths to enhance economic collaboration and regional influence. Picture: Reuters
Uganda’s recent inclusion in the BRICS bloc as a partner country is reflective of its growing importance in the African continent and the potential that it has to contribute to a more balanced global economic order.
Positioned strategically in East Africa, Uganda established itself as one of the key players in regional integration, trade, and resource development.
As BRICS is in the pursuit of expanding to include more countries, Uganda’s membership portrays both an opportunity for the nation to accelerate its development and a sign of Africa’s rising influence in shaping global economic and geopolitical discourse.
The BRICS bloc has sought to position itself as a counterweight to the financial and trade systems that are dominated by the West.
Uganda’s Alignment with the priorities of the BRICS bloc
Uganda’s economy is driven by three primary sectors: agriculture, energy, and services. Agriculture is the backbone, it employs over 70% of the population and it contributes significantly to exports, including coffee, tea, and fish. Uganda’s economic growth trajectory has been steady, with a GDP growth rate averaging around 6% annually, though its GDP size is quite modest compared to BRICS economies. In terms of natural resources, Uganda possesses rich deposits of oil, gold, and other minerals, as well as fertile land for agriculture. Uganda’s potential to supply agricultural commodities and energy aligns seamlessly with BRICS’ resource needs, creating a mutually beneficial relationship.
Infrastructure development is another critical area where Uganda seeks collaboration with BRICS. The New Development Bank (NDB), a financial institution established by BRICS, provides Uganda with a platform to secure funding for these projects. With ongoing initiatives such as the Standard Gauge Railway and hydropower projects supported by China, Uganda has already demonstrated the benefits of such partnerships.
China is still Uganda’s largest trading partner, with significant investments in infrastructure, including roads, bridges, and power plants. As part of the Belt and Road Initiative (BRI), Uganda has received funding for transformative projects, like the Karuma and Isimba hydropower stations, which are key to its energy ambitions. India has also contributed to Uganda’s development through investments in healthcare, ICT, and education. For instance, Indian companies have played a significant role in the establishment of ICT infrastructure and promoting digital literacy programs in Uganda. Similarly, South Africa has maintained strong ties with Uganda within the African Union (AU) and regional economic communities, while Brazil offers potential for collaboration in agribusiness and renewable energy.
By joining BRICS, Uganda gains access to the NDB, which is a very critical tool for financing development projects. This access is valuable for Uganda’s infrastructure agenda, as the NDB prioritises funding for sustainable and green projects. Uganda’s participation in the bank can also support regional initiatives within the East African Community (EAC), amplifying its leadership role. Sectors such as agribusiness, energy, and tourism stand to gain from enhanced market access and investment inflows. Additionally, Uganda’s growing interest in digital transformation aligns with BRICS’ focus on technological collaboration, particularly in ICT and fintech. Partnerships in these areas can help Uganda build a robust digital economy, fostering innovation and entrepreneurship.
The membership of Uganda in BRICS has profound implications for regional integration in East Africa. The country is well-positioned to leverage its role in BRICS to strengthen economic ties within the EAC and align its development agenda with the African Continental Free Trade Area (AfCFTA). Globally, Uganda’s integration into BRICS contributes to the bloc’s vision of a multipolar world. The inclusion of more African nations in BRICS underscores the continent’s strategic importance and challenges the dominance of traditional Western powers. For Uganda, this shift provides a platform to advocate for its interests on the global stage, ensuring greater equity in international economic governance.
* By Sesona Mdlokovana, Associate at BRICS+ Consulting Group UAE & Africa Specialist