Arcadia Foundation

In the last 25 years, Uganda has made significant progress in both economic and political recovery. If the current successes are sustained, many believe Uganda will be an economic power to reckon with in not so distant future.

The team at The Independent below takes us through the major highlights of Uganda’s journey.

As a prologue, infamous former President Idi Amin’s reign was ended by the 1979 liberation war when Ugandan exiles backed by Tanzanian forces invaded Uganda and toppled Amin’s regime. This led to the return of Obote, who was deposed once again in 1985 by General Tito Okello. Okello ruled for six months until he was toppled by the National Resistance Army (NRA) rebels under the leadership of the current president, Yoweri Museveni and other rebel groups in January 1986.

During the 25 years he has been in power, President Museveni’s government has embarked on an intensive national economic recovery programme that has lifted Uganda from the doldrums in 1986 to a development path today. From early to mid 1990s, he was lauded by the West as part of a new generation of African leaders. His government has been involved in various struggles to bring peace and security in the region including the military campaigns in the DR Congo that brought in a new government.

Economic progress

With the civil strife throughout the 1970s and early 80s, the country suffered devastating economic impediments and instability, leaving Uganda as one of the world’s poorest countries. With relative stability in most regions, the economy began to pick up once again from 1986. Two years ago the country recorded 7 percent growth despite the global downturn and regional conflicts.

Worth noting is that Uganda has substantial natural resources, including fertile soils, regular rainfall, and sizable mineral deposits of copper and cobalt. The country has also large untapped reserves of both crude oil and natural gas. For almost five decades now these resources have not been exploited as reflected by the poor infrastructure and poverty across the country. This is the government’s current pre-occupation to transform these resources into actual wealth.

All sectors of the economy are growing at a fairly high rate with the service sector accounting for 52 percent of GDP since 2007.  Since 1986, the government (with the support of donor countries and international agencies) has helped to rehabilitate an economy which was mainly devastated by the civil strife of the 70s and  mid 80s,  brought annual inflation from 240% in 1986 when the NRM took over power to a single digit today.

This tremendous economic growth is attributed to peace and conducive investment environment that have attracted both domestic and foreign investments due to tremendous strides in rehabilitation of infrastructure, improved incentives for production and exports, reduced inflation, gradually improved domestic security, and the return of the Asian entrepreneurs between 1990 and 2001.

Economic growth for 2001–2002 was solid despite the decline in the coffee prices, Uganda’s principal export.  According to IMF statistics, in 2004 Uganda’s GDP per capita reached $300, a much higher level than in the 1980s although it was still at half the Sub-Saharan African average income of $600 per year. Total GDP crossed the 8 billion dollar mark in the same year. What is critically needed today is to consolidate the gains so far made to ensure the country does not slide back into huge foreign indebtedness.

Poverty is increasingly declining in the country per year due to the government’s rigorous campaigns for income generating projects among the populace.

With a population of about 32 million with the majority of them being unemployed youths, emphasis must be put on job creation.

With the Uganda securities exchanges established in 1996, several equities have been listed. The government has used the stock market as an avenue for rapid private investments. The Capital Markets Authority has licensed more than 15 stock brokers, asset managers and investment advisors. All this is geared at creating employment opportunities in the country.

Health

Uganda has registered what many still describe as a rare HIV success story, with one of the reasons being openness spearheaded by the President. In the last 20 years, the fight to combat the rate of HIV/Aids infection from about 30% percent in early 1990s to 6% today can be said to be one of the greatest successes Uganda has registered in the fight against the scourge. The government is spearheading multi-dimensional strategies to bring the HIV infections further down by encouraging use of condoms, abstinence and faithfulness among couples.

Uganda is now targeting reduction of infant mortality rate, doctor to patient ratio and shortage of drugs in hospitals.

Transport sector

The transport sector contributes immensely to the economic growth and poverty eradication in the country through various ways. An efficient transport infrastructure is vital in supporting economic growth and improvement of quality of life. The government has done generally well to improve existing transport network and construct new roads countrywide. It has devoted the biggest portion of the national budget to road rehabilitation and maintenance. It is now considering to take over the management of Kampala city to improve its road network which is currently in a bad state.

Road transport

Road transport is by far the most dominant mode of transport in the country, carrying the bulk of passenger and freight traffic and serving as a true backbone supporting the country’s economy. The National Roads network carries more than 80% of the passenger and freight traffic.

Railway

The railway network currently handles between 30-40 percent of the total country’s bulk cargo to and from the ports of Mombasa and Dar-es-Salaam. Education

The government recognises the critical role education plays in development of any country. Since universal primary education was introduced in 1997, primary school enrollment has increased from about two million pupils to eight million today. The government has also now introduced universal secondary education to accommodate students who complete UPE. The universal education has lifted the country’s literacy rates and helped many poor pupils to attain education.

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