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Writer's pictureJames Lubwa

Economic growth in Uganda

Updated: Sep 27, 2020


Harvard's Centre for International Development recently released its latest global growth projections, which lists Uganda as one of the economies to grow fastest by 2026. The report noted that with the fall in oil prices, growth leadership has shifted towards, more diversified economies like Uganda.


Uganda is expected to grow by 7.9% annually until 2026 as labour shifts out of agriculture and into manufacturing and services but was concerned that an industrial revolution is not yet upon us.


The projected rate is fast enough to more than compensate for our current high birth rates. It is heartening as well that our economy has become more diversified, relying less and less on coffee or agriculture, as services and to some extent manufacturing take the lead. (The New Vision, Tuesday, May 8,2018)


Nevertheless, economic growth over the last three decades has been driven by services, construction and industry, among others. On the other hand, agriculture has not significantly contributed to Uganda's economy, in spite of our comparative advantages. That is, Uganda has the ability to benefit from agriculture due to presence of natural endowments like vast fertile soil, good weather, among others.


That said, it's ironic when the growth in agricultural output continues to be quite minimal as compared to the number of people


Apparently, the government is working on resuscitating its extension services network within the agricultural sector. This, if properly implemented, could help farmers improve the productivity of their farms and eventually raise subsequent agricultural output throughout the country.



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