Economy of Uganda

Economy of Uganda
Downtown Kampala
Currency Ugandan shilling (UGX)
1 July – 30 June
Trade organisations
 EAC, COMESA, AU, WTO
Statistics
GDP $26.39 billion (2017 est.)
GDP rank 90th (nominal, 2017)
GDP growth
 5.2% (2015), 4.7% (2016),
4.0% (2017e), 5.5% (2018f) [1]
GDP by sector
 Agriculture: 71.9%
Industry: 4.4%
Services: 23.7% (2017 est.)
5.8% (2017 est.)
19.1% (31 December 2017 est.)[2]
Population below poverty line
 19.7% (2017 est.)
39.5 (2017 est.)
Labour force
 20.05 million (2017 est.)
Labour force by occupation
 agriculture: 71.9% (2013 est.)
Main industries
 sugar, brewing, tobacco, cotton textiles; cement, steel production
Increase 115th (2017)[3]
External
Exports $3.172 billion (2017 est.) (123rd)
Export goods
Main export partners
  Kenya 20.9%
 UAE 11.2%
 Rwanda 9.5%
 DR Congo 8.9%
 Italy 4.5% (2017)
Imports $4.592 billion (2017 est.)
Import goods
Main import partners
  China 17.9%
 India 17.2%
 UAE 9.5%
 Kenya 9.2
 Japan 5.2%
 South Africa 4.5%
 Saudi Arabia 4.4% (2016)
FDI stock
 $10.909 billion (2016)[4]
$-1.476 billion (2017 est.)
$7.163 billion (31 December 2017 est.)
Public finances
$11.2 billion ($3.8 billion, domestic) (2018)[5]
Revenues $3.98 billion (2017)[6]
Expenses $7.66 billion (2017)[6]
Economic aid $3.68 billion (2017)[6]
Standard & Poor's: Decrease B[7]
Foreign reserves
 3.045 billion (31 December 2017 est.)
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.
A family in a market in Kampala.

Endowed with significant natural resources, including ample fertile land, regular rainfall, and mineral deposits, it is thought that Uganda could feed all of Africa if it were commercially farmed.[8] The economy of Uganda has great potential, and it appeared poised for rapid economic growth and development.[9]

Chronic political instability and erratic economic management since self-rule has produced a record of persistent economic decline that has left Uganda among the world's poorest and least-developed countries.[10] The national energy needs have historically been more than domestic energy generation, though large petroleum reserves have been found in the country's west.[11]

After the turmoil of the Amin period, the country began a program of economic recovery in 1981 that received considerable foreign assistance. From mid-1984 onward, overly expansionist fiscal and monetary policies and the renewed outbreak of civil strife led to a setback in economic performance.[12]

The economy grew since the 1990s. Real gross domestic product (GDP) grew at an average of 6.7% annually during the period 1990–2015.[13] , whereas real GDP per capita grew at 3.3% per annum during the same period.[13] During this period, the Ugandan economy experienced economic transformation: the share of agriculture value added in GDP declined from 56% in 1990 to 24% in 2015; the share of industry grew from 11% to 20% (with manufacturing increasing at a slower pace, from 6% to 9% of GDP); and the share of services went from 32% to 55%.[13]

International trade and finance

Ugandan export destinations in 2006.


Since assuming power in early 1986, Museveni's government has taken important steps toward economic rehabilitation. The country's infrastructure, notably its transport and communications systems which were destroyed by war and neglect, is being rebuilt. Recognizing the need for increased external support, Uganda negotiated a policy framework paper with the IMF and the World Bank in 1987. Uganda subsequently began implementing economic policies designed to restore price stability and sustainable balance of payments, improve capacity utilization, rehabilitate infrastructure, restore producer incentives through proper price policies, and improve resource mobilization and allocation in the public sector. These so-called Structural Adjustment Programs greatly improved the shape of the Ugandan economy, but did not lead to economic growth in the first decade after their implementation. Since 1995, Uganda has experienced rapid economic growth, but it is not clear to what extent this positive development can be attributed to Structural Adjustment.[14] Uganda is a member of the World Trade Organization, since 1 January 1995 and a member of the General Agreement on Tariffs and Trade, from 25 October 1962.[15]

Currency

Uganda began issuing its own currency in 1966 through the Bank of Uganda.[16]

Agriculture

Agricultural products supply a significant portion of Uganda's foreign exchange earnings, with coffee alone, of which Uganda is Africa's second largest producer after Ethiopia,[17] accounting for about 17% of the country's exports in 2017 and earning the country US$545 million.[17] Exports of apparel, hides, skins, vanilla, vegetables, fruits, cut flowers, and fish are growing, while cotton, tea, and tobacco continue to be mainstays.[18]

Transportation

As of 2017, Uganda had about 130,000 kilometres (80,778 mi) of roads, with approximately 5,300 kilometres (3,293 mi) (4 percent) paved.[19] Most paved roads radiate from Kampala, the country's capital and largest city.[20]

As of 2017, Uganda’s metre gauge railway network measures about 1,250 kilometres (777 mi) in length. Of this, about 56% (700 kilometres (435 mi)), is operational. A railroad originating at Mombasa on the Indian Ocean connects with Tororo, where it branches westward to Jinja, Kampala, and Kasese and northward to Mbale, Soroti, Lira, Gulu, and Pakwach. The only railway line still operating, however, is the one to Kampala.[19]

Uganda's important link to the port of Mombasa is now mainly by road, which serves its transport needs and also those of neighboring Rwanda, Burundi, parts of the Democratic Republic of the Congo, and South Sudan.[21]

An international airport is at Entebbe on the northern shores of Lake Victoria, about 41 kilometres (25 mi) south of Kampala.[22] In January 2018, the government of Uganda began the construction of Kabaale International Airport, in the Western Region of Uganda. This will be Uganda's second international airport, which is planned to facilitate the construction of an oil refinery and boost tourism.[23]

Communications

The Uganda Communications Commission regulates communications, primarily "delivered through an enabled private sector." The companies it regulates include television networks, radio stations, mobile network operators, and fixed-line telephone companies.[24]

Mining and petroleum

Uganda's predominant mineral occurrences are gold, tungsten, tin, beryl, and tantalite in the south; tungsten, clay, and granite between latitude zero and two degrees north; and gold, mica, copper, limestone, and iron in the north.[25]

In late 2012, the government of Uganda was taken to court over value added tax that it placed on goods and services purchased by Tullow Oil, a foreign oil company operating in the country at the time.[26] The court case was heard at an international court based in the United States. The Ugandan government insisted that Tullow could not claim taxes on supplies as recoverable costs before oil production starts.[27] Sources from within the government reveal that the main concern at present is the manner in which millions of dollars have been lost in the past decade, money that could allegedly have stayed in Uganda for investment in the public sector; a Global Financial Integrity report recently revealed that illicit money flows from Uganda between 2001 and 2012 totalled $680 million.[27] Tullow Oil was represented in the court case by Kampala Associated Advocates, whose founder is Elly Kurahanga, the President of Tullow Uganda.[26] A partner at Kampala Associated Advocates, Peter Kabatsi, was also Uganda’s solicitor general between 1990 and 2002, and he has denied claims that he negotiated contracts with foreign oil firms during his time in this role.[26]

In June 2015, the Ugandan government and Tullow Oil settled a longstanding dispute regarding the amount of certain capital gains taxes that the company owed to the government.[28] The government claimed that the company owed US$435 million.[29] The claim, however, was settled for US $250 million.[28]

In April 2018, the government signed agreements with Albertine Graben Refinery Consortium, an International consortium led by General Electric of the United States, to build a 60,000 barrels-per-day Uganda Oil Refinery in Western Uganda. The cost of the development is budgeted at about US$4 billion.[30][31]

Data

Year 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GDP in $
(PPP)		 4.69 Bln. 6.71 Bln. 10.08 Bln. 15.36 Bln. 22.16 Bln. 35.82 Bln. 39.53 Bln. 43.85 Bln. 49.38 Bln. 53.77 Bln. 58.59 Bln. 63.88 Bln. 66.52 Bln. 70.78 Bln. 75.33 Bln. 80.46 Bln. 83.39 Bln. 88.67 Bln.
GDP per capita in $
(PPP)		 416 509 639 826 1,016 1,389 1,482 1,589 1,728 1,820 1,920 2,026 2,044 2,112 2,185 2,267 2,281 2,354
GDP growth
(real)		 −3.9 % −3.0 % 6.5 % 9.2 % 3.9 % 10.0 % 7.0 % 8.1 % 10.4 % 8.1 % 7.7 % 6.8 % 2.2 % 4.7 % 4.6 % 5.7 % 2.3 % 4.5 %
Government debt
(Percentage of GDP)		 ... ... ... ... 63 % 55 % 36 % 22 % 20 % 19 % 22 % 23 % 25 % 28 % 31 % 33 % 37 % 39 %

Source: IMF[32]

See also

References

  1. ↑ "World Bank forecasts for Uganda, June 2018 (p. 154)" (PDF). World Bank. Retrieved 6 September 2018.
  2. ↑ Biryabarema, Elias (3 October 2017). "Uganda central bank lowers key lending rate to 9.5 percent". Reuters.com. Retrieved 8 June 2018.
  3. ↑ "Ease of Doing Business in Uganda". Doingbusiness.org. Retrieved 24 January 2017.
  4. ↑ UNCTAD (November 2017). "Uganda: Foreign Investment: Foreign Direct Investment". Export Entreprises SA Quoting UNCTAD. Retrieved 8 June 2018.
  5. ↑ Nakaweesi, Dorothy (27 June 2018). "Uganda Shilling: A currency in free-fall". Daily Monitor. Kampala. Retrieved 27 June 2018.
  6. 1 2 3 KPMG (June 2017). "Uganda Budget Brief 2017: Economic Commentary" (PDF). Nairobi: KPMG Kenya. Retrieved 8 June 2018.
  7. ↑ "S&P lowers Uganda sovereign credit rating to B from B+". Reuters. 17 January 2014. Retrieved 9 December 2014.
  8. ↑ Aid and other dirty business by Giles Bolton. Page 24. ISBN 978-0-09-191435-6
  9. ↑ World Bank (December 2017). "Uganda Economic Update, 10th Edition, December 2017 : Accelerating Uganda's Development, Ending Child Marriage, Educating Girls". Washington, DC: World Bank Group. Retrieved 8 June 2018.
  10. ↑ Staff Writer (31 May 2016). "The richest and poorest countries in Africa". Johannesburg: Businesstech.co.za. Retrieved 8 June 2018.
  11. ↑ John Aglionby (27 April 2017). "Uganda's oil reserves bring promise of work and infrastructure". The Financial Times. London. Retrieved 8 June 2018.
  12. ↑ CARE International (13 November 2002). "Economic cost of the conflict in Northern Uganda". New York City: ReliefWeb. Retrieved 8 June 2018.
  13. 1 2 3 World Bank. "World Development Indicators". Washington, DC: World Bank Group. Retrieved 3 June 2018.
  14. ↑ Baten, Jörg (2016). A History of the Global Economy. From 1500 to the Present. Cambridge University Press. pp. 332–334. ISBN 9781107507180.
  15. ↑ WTO (8 June 2018). "Uganda and the WTO". Geneva: World Trade Organization (WTO). Retrieved 8 June 2018.
  16. ↑ Bank of Uganda (8 June 2018). "History of Uganda Currency". Kampala: Bank of Uganda. Retrieved 8 June 2018.
  17. 1 2 Nakaweesi, Dorothy (25 October 2017). "Uganda posts highest coffee export volumes at 4.6 million bags". Daily Monitor. Kampala. Retrieved 8 June 2018.
  18. ↑ International Trade Administration (8 March 2017). "Uganda - Agriculture". Washington, DC: United States Department of Commerce. Retrieved 8 June 2018.
  19. 1 2 Ministry of Works & Transport (2017). "Key Summary Statistics". Kampala: Uganda Ministry of Works and Transport. Retrieved 8 June 2018.
  20. ↑ Dlca.LogCluster]] (2017). "Map of Uganda Showing Main Roads". Dlca.logcluster.org. Retrieved 8 June 2018.
  21. ↑ NCTTCA (2018). "About the Northern Transportation Corridor". Mombasa: Northern Corridor Transit and Transportation Coordination Authority (NCTTCA). Retrieved 8 June 2018.
  22. ↑ Globefeed.com (8 June 2018). "Distance between Post Office Building, Kampala Road, Kampala, Uganda and Entebbe International Airport, 5536 Kampala Road, Entebbe, Uganda". Globefeed.com. Retrieved 8 June 2018.
  23. ↑ Steenhoff-Snethlage, Erin (11 December 2017). "Second international airport on the way for Uganda". Johannesburg: Ftwonline.co.za. Retrieved 8 June 2018.
  24. ↑ Paul Mugume (23 January 2017). "Uganda Communications Commission Toughens on Local Content Prioritization". Kampala: TCTech Magazine. Retrieved 8 June 2018.
  25. ↑ Butagira, Tabu (31 August 2012). "Study shows Uganda's vast mineral riches". Daily Monitor. Kampala. Retrieved 8 June 2018.
  26. 1 2 3 Butagira, Tabu (17 December 2012). "Tullow sues government in new tax dispute". Daily Monitor. Kampala. Retrieved 8 June 2018.
  27. 1 2 NorthSouthNews (8 January 2013). "Tullow Oil and Ugandan government in second tax row". NorthSouthNews.com. Retrieved 8 June 2018.
  28. 1 2 RTE Ireland (22 June 2015). "Tullow pays $250 million to settle Uganda tax dispute out of court". Dublin, Ireland: Raidió Teilifís Éireann. Retrieved 8 June 2018.
  29. ↑ Mason, Rowena (18 April 2011). "Tullow Oil sues Heritage over unpaid Ugandan tax bill". Daily Telegraph. London. Retrieved 8 June 2018.
  30. ↑ Olingo, Allan (14 April 2018). "Uganda signs $4 billion refinery plant deal". The EastAfrican. Nairobi. Retrieved 8 June 2018.
  31. ↑ Musisi, Frederic (8 May 2018). "Uganda signs off Shs4 trillion for US in refinery". Daily Monitor. Kampala. Retrieved 8 May 2018.
  32. ↑ "Report for Selected Countries and Subjects". Retrieved 2018-08-24.
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