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Uganda is proactively implementing measures to safeguard its economy against potential international sanctions, particularly from the United States.
Minister of State for International Relations, Okello Oryem, has articulated strategies including the establishment of domestic gold reserves and the nation's recent alignment with the BRICS alliance.
Establishing Domestic Gold Reserves
Oryem told parliament yesterday that the Bank of Uganda will soon commence purchasing gold from local miners as part of this initiative.
This strategy is designed to create internal gold reserves, reducing reliance on foreign reserves that could be susceptible to international sanctions.
Oryem stated, "We are now in the process of studying, and a paper is being developed for Bank of Uganda to start procuring gold so that we have gold reserves in this country and not only gold reserves abroad."
The minister noted the vulnerability of Uganda's foreign reserves to potential freezes by the United States, which could severely impact the nation's economy.
Joining BRICS: A Strategic Move
In addition to bolstering gold reserves, Uganda has joined the BRICS alliance as a partner state, effective January 1, 2025.
This coalition, comprising Brazil, Russia, India, China, and South Africa, along with new partner countries, represents a big portion of the global economy.
Minister Oryem explained that this decision aligns with Uganda's strategy to diversify its international partnerships and reduce susceptibility to unilateral sanctions imposed by Western nations. He remarked, "Uganda can’t just stand by and look at these changes and not be part of these changes; it will not be right."
Global Context and Reactions
The expansion of BRICS has garnered global attention, with several countries seeking to join the bloc to counterbalance Western economic dominance.
Notably, Indonesia recently became a full member of BRICS, marking a significant shift in international economic alliances.
MPs concerned
Some members of Parliament, however, raised questions over the government’s decision to join BRICS without consulting the house.
Hon Muwada Nkunyingi (Kyadondo East) demanded clarity on how the decision was reached and whether it posed financial obligations for the country.
The MP also emphasised the importance of transparency, urging the government to clearly outline Uganda’s strategy for global partnerships and its financial implications.
The minister, however, explained that the matter was duly discussed in cabinet and approved.
“The President then gave directives to the Ministry of Finance through the Ministry of Foreign Affairs to write to the Secretariat of BRICS that Uganda wishes to be part and partial of the BRICS organization,” he said.
“ I don’t know whether it requires parliamentary approval or not, because when we became members of all those organisations, I don’t think it required approval from Parliament,” Oryem explained.
He added that these measures are intended to ensure greater economic stability and resilience in the face of shifting international relations