Economy of Uganda 56924 221336570 2008-06-24T02:14:27Z Mangostar 4177882 rm unhelpful template {{refimprove|article|date=January 2007}} [[Image:KampalaMarket.jpg|thumb|200px|right|A family in a market in [[Kampala]].]] Endowed with significant natural resources, including ample fertile land, regular rainfall, and mineral deposits, the '''economy of [[Uganda]]''' has great potential, and it appeared poised for rapid economic growth and development. However, chronic political instability and erratic economic management produced a record of persistent economic decline that has left Uganda among the world's poorest and least-developed countries. The [[energy in Uganda|national energy needs]] have historically been more than domestic energy generation, though large petroleum reserves have been found in the west. After the turmoil of the [[Idi Amin|Amin]] era, the country began a program of economic recovery in 1981 that received considerable foreign assistance. From mid-1984 on, however, overly expansionist fiscal and monetary policies and the renewed outbreak of [[civil war|civil strife]] led to a setback in economic performance. ==International trade and finance== [[Image:2006Ugandan exports.PNG|thumb|right|Ugandan exports 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 [[communication]]s [[system]]s 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. It 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 policies produced positive results. [[Inflation]], which ran at 240% in 1987 and 42% in June 1992, was 5.4% for fiscal year 1995-96 and 7.3% in 2003. Investment as a percentage of [[Gross domestic product|GDP]] was estimated at 20.9% in 2002 compared to 13.7% in 1999. Private sector investment, largely financed by private transfers from abroad, was 14.9% of GDP in 2002. Gross national savings as a percentage of GDP was estimated at 5.5% in 2002. The Ugandan Government has also worked with donor countries to reschedule or cancel substantial portions of the country's external [[debt]]s. Uganda is a member of the [[WTO]]. === Currency === Uganda began issuing its own currency in 1966 through the Bank of Uganda.<ref>[http://www.bou.or.ug/bouwebsite/opencms/bou/currency/history_of_the_currency.html History of the Currency]Bank of Uganda,2007</ref> Prior to the failure of the East African Currency Board, Uganda used other countries' currency. There have been six changes of currency since 1966, but the 1987 version has been stable. Upgrades to it have been intended to decrease counterfeiting and make the currency more useful. == Economic Statistics == '''[[Gross domestic product|GDP]]:''' purchasing power parity - $51.89 billion (2006 estimate) '''GDP - real growth rate:''' 5% (2006 estimate) '''GDP - per capita:''' purchasing power parity - $1,800 (2006 estimate) '''GDP - composition by sector:'''<br/> ''agriculture:'' 29.4%<br/> ''industry:'' 22.1%<br/> ''services:'' 48.5% (2006 estimate) '''Population below poverty line:''' 35% (2001 estimate) '''Household income or consumption by percentage share:'''<br/> ''lowest 10%:'' 4%<br/> ''highest 10%:'' 21% (2000) '''Inflation rate (consumer prices):''' 6% (2006) '''Labor force:''' 13.76 million (2006 estimate) '''Labor force - by occupation:''' agriculture 82%, industry 5%, services 13% (1999 estimate) '''Unemployment rate:''' n/a '''Budget:'''<br/> ''revenues:'' $1.943 billion<br/> ''expenditures:'' $1.994 billion, including capital expenditures of $NA (2006) '''Industries:''' [[sugar]], [[brewing]], [[tobacco]], [[cotton textiles]], [[cement]], [[steel production]] '''Industrial production growth rate:''' 5.2% (2006) '''Electricity - production:''' 1.894 kWh (2004) '''Electricity - consumption:''' 1.596 kWh(2004) '''Electricity - exports:''' 165 kWh (2004) '''Electricity - imports:''' 0 kWh (1998) '''Electricity - production by source:'''<br/> ''fossil fuel:'' 0.88%<br/> ''hydro:'' 99.12%<br/> ''nuclear:'' 0%<br/> ''other:'' 0% (1998) '''Agriculture - products:''' [[coffee]], [[tea]], [[cotton]], [[tobacco]], [[cassava]] ([[tapioca]]), [[potatoes]], [[maize]], [[pearl millet]], [[pulses]]; [[beef]], [[goat meat]], [[milk]], [[poultry]] '''Exports:''' $961.7 million (f.o.b., 2006) in [[coffee]], [[fish]] and fish products, [[tea]]; electrical products, [[iron]], [[steel]], [[flowers and horticultural products]] and [[gold]] '''Exports - partners:''' [[Kenya]] 15.1% ([[Belgium]] 9.9%, [[Netherlands]] 9.6%, [[France]] 7.1%, [[Germany]] 5.1% (2005) '''Imports:''' $1.945 billion (f.o.b., 2006) [[capital equipment]], [[vehicles]], [[petroleum]], [[medical supplies]] and [[cereals]] '''Imports - partners:''' [[Kenya]] 32.6%, [[UAE]] 8.8%, [[South Africa]] 5.8%, [[India]] 5.8%, [[China]] 5.3, [[UK]] 4.5%, [[US]] 4.2%, [[Japan]] 4.1% (2005) '''Debt - external:''' $1.456 billion (2006) '''Economic aid - recipient:''' $959million (2003) '''Currency:''' 1 Ugandan shilling (USh) = 100 cents '''Exchange rates:''' Ugandan shillings (USh) per US$1 - 1705 (xe.com 20-11-07 2007), 1856 (2006), 1781 (2005), 1810 (2004), 1963 (2003), 1798 (2002)(but internal trade in tourism sector usually uses 1750) '''Fiscal year:''' [[1 July]] - [[30 June]] == Agriculture == {{main|Agriculture in Uganda}} {{see also|Fishing in Uganda|Forestry in Uganda}} Agricultural products supply nearly all of Uganda's foreign exchange earnings, with coffee alone (of which Uganda is Africa's leading producer) accounting for about 27% of the country's exports in 2002. Exports of apparel, [[hides]], skins, [[vanilla]], [[vegetable]]s, [[fruit]]s, cut [[flower]]s, and [[fish]] are growing, and [[cotton]], [[tea]], and [[tobacco]] continue to be mainstays. [[Image:UgandanShillings20000.jpg|thumb|right|299px|The twenty-thousand [[Ugandan shilling]] banknote, issued by the [[Bank of Uganda]].]] Most industry is related to agriculture. == Industry == The industrial sector is being rehabilitated to resume production of building and construction materials, such as cement, reinforcing rods, corrugated roofing sheets, and paint. Domestically produced consumer goods include plastics, [[soap]], [[cork (material)|cork]], [[beer]], and [[soft drink]]s. Major Cement manufacturers like 'Tororo Cement Ltd' caters to the need of building and construction material consumers across East Africa.The company has an extensive network and Marketing Manager in Kampala sales office is Mr.Anil Sadevra == Transportation and Communications== Uganda has about 30,000 kilometers (18,750&nbsp;mi.), of roads; some 2,800 kilometers (1,750&nbsp;mi.) are paved. Most radiate from [[Kampala]]. The country has about 1,350 kilometers (800&nbsp;mi.) of rail lines. A railroad originating at [[Mombasa]] on the [[Indian Ocean]] connects with [[Tororo]], where it branches westward to [[Jinja, Uganda|Jinja]], [[Kampala]], and [[Kasese]] and northward to [[Mbale]], [[Soroti]], Lira, [[Gulu]], and [[Kapwach]]. Uganda's important road and rail links to Mombasa serve its transport needs and also those of its neighbors-[[Rwanda]], [[Burundi]], and parts of [[Democratic Republic of the Congo|Congo]] and [[Sudan]]. An international airport is at [[Entebbe]] on the shore of [[Lake Victoria]], some 32 kilometers (20&nbsp;mi.) south of Kampala. The Uganda Communications Commission (UCC) regulates communications, primarily "delivered through an enabled private sector."<ref>[http://www.ucc.co.ug/ Uganda Communications Commission ]</ref> ==See also== * [[Economy of Africa]] * [[List of Ugandan companies]] * [[Uganda Securities Exchange]] ==External links== *[http://www.finance.go.ug/ Uganda Ministry of Finance, Planning and Economic Development] *{{dmoz|Regional/Africa/Uganda/Business_and_Economy/Economic_Development}} *[http://www.ubi.co.ug/ The Uganda Business Index] *[http://www.ugee.com/YellowPages Uganda Business Directory] {{Uganda topics}} {{Africa topic|Economy of}} == References == {{reflist}} <!--Categories--> [[Category:Economy of Uganda| ]] [[Category:WTO member economies|Uganda]] [[Category:African Union member economies|Uganda]] <!--Other languages--> [[es:Economía de Uganda]] [[fr:Économie de l'Ouganda]] [[gl:Economía de Uganda]] [[io:Ekonomio di Uganda]] [[he:כלכלת אוגנדה]] [[oc:Economia d'Oganda]] [[pt:Economia de Uganda]]