Emmanuel Katto | The economic growth of Uganda.

Uganda is a beautiful country in East Africa, referred to as the “Pearl of Africa” because of its rich natural resources, wildlife, and biodiversity. During my recent visit to Uganda,  I’m Emmanuel Katto also known as Emmanuel Katto Uganda or Emka Uganda, a local journalist from Uganda. I will tell you many things about the economy of Uganda, the growth, GDP, employment etc.   

In terms of growth and development Uganda has maintained a growth of 6.8% from 6% previously. Although the percentage increase is not that high still it is a positive sign for any country with a development perspective. 

According to the reports, of the Ministry of Finance of Uganda, the ease in the inflationary pressures will contribute to 5.3% growth which is targeted for the 2022 and 2023 fiscal years. The economy of Uganda is making a positive impact leading to better economic growth in the country.

This growth of Uganda has been driven by various factors such as agriculture, services, manufacturing and construction and infrastructure development. All these have efficiently contributed to the economy of Uganda, making a significant contribution to the GDP of the country. 

Agriculture practices such as Subsistence farming, commercial farming, cash-crops farming, commercial farming, and horticulture have made a significant impact on the country’s growth. These sectors mainly focus on food security and export earnings. It employs a large portion of the workforce of the population, and the production also takes place at a large scale with high-yielding products such as tobacco, coffee, tea, maize, bananas, cotton etc, which results in export to other countries that boost the country’s GDP, making it more efficient and sustainable.

The oil and natural gas resources are also found in adequate quantity in Uganda. It was initially found in Lake Albert since the development is taking place at this lake, and it is estimated that it will result in 6.5 billion barrels of crude oil, and it is expected to last up to 25 years. It in a way holds significant potential for the country's economic transformation. This development of oil and natural gas is expected to create employment opportunities and expected to attract investment.

The service sector is a major contributor to Uganda’s GDP, encompassing activities such as tourism, transportation and financial services. This sector has benefitted from increased domestic consumption and the government's initiatives and efforts to make a positive and healthy business environment. 

So far Uganda has attracted significant foreign direct investment in the agricultural, manufacturing and service sector. Foreign direct investment will help in job creation, technology transfer and the development of economic activities, which make a positive impact on any country’s economic development. 

Uganda is continuously making a positive growth in its economy through all the activities that contribute to the GDP. But we should not forget that it still also faces various challenges like infrastructure gaps, transparency, access to financial services and issues of governance. The government is addressing these issues and making tremendous efforts in bringing economic reforms, investment in key sectors and regional integration efforts that will boost the country’s economic growth and development.