Economy of Uganda
Since 1986, the government has pursued a series of stabilization and pro-market structural reforms that resulted in the macroeconomic stability leading to the high growth since 1986 to date. Real gross domestic product (GDP) growth averaged 7% per year in the 1990s and the 2000s, placing Uganda among the 15 fastest growing economies in the World. However, the volatile global economy, the local population pressures and other challenges have over the past decade a slowed the gross domestic product (GDP) resulting a growth rate of 4.6% in FY 2015/16 down from 5% in FY2014/15. The growing sectors include agriculture grew by 3.2% up from 2.3%. , service sector by 6.6% from 4.5% and the construction sector by 5.7% from 2.7% that were registered in 2014/15. Growth is however expected to pick up to 5.8% in FY2016/17 mainly driven by a scale up in public infrastructure spending and a rebound in private sector activity following the general election. Private sector investment is expected to receive a boost as the monetary policy stance normalizes and FDI inflows linked to the planned issuance of oil production licenses come on board. In the medium term, growth is expected to average 6.2% per annum owing to the impact of public investment projects. The stimulatory impact of new public investment projects will begin to have a large impact on growth from FY2017/18, when the economy is expected to surpass its medium-term objective of at least 6.2 % real growth per annum (Budget 2016/17). The Uganda’s economy in real terms has expanded to Sh55.7 trillion in the 2015/16, up from Sh53.2 trillion that was registered in the previous financial year 2014/15. The annual average inflation rate stood at 5.5% for calendar year 2015/16. In order to consolidate and accelerate the growth the government approved the Comprehensive National Development Planning Framework policy (CNDPF) which provides for the development of a 30 year Vision to be implemented through: three 10-year plans; six 5-year National Development Plans (NDPs); Sector Investment Plans (SIPs); Local Government Development Plans (LGDPs), Annual work plans and Budgets.
The National Vision statement, “A Transformed Ugandan Society from a Peasant to a Modern and Prosperous Country within 30 years”, has been formulated and implementation is under way. Uganda through Vision 2040 desires to change from a predominantly low income to a competitive upper middle income country within 30 years with a per capita income of USD 9,500. Uganda is expected to achieve the upper middle income status through strengthening the fundamentals of the economy including infrastructure, Science, Technology, Engineering and Innovation (STEI); land use and management; urbanisation; human resource; peace, security and defence in order to exploit the opportunities in the areas of oil and gas, tourism, minerals, ICT business, abundant labour force, geographical location and trade, water resources, industrialisation, and agriculture.