| Endowed with significant natural resources, | | | | in 1999. Private sector investment, largely |
| including ample fertile land, regular rainfall, and | | | | financed by private transfers from abroad, was |
| mineral deposits, the economy of Uganda has | | | | 14.9% of GDP in 2002. Gross national savings as a |
| great potential, and it appeared poised for rapid | | | | percentage of GDP was estimated at 5.5% in |
| economic growth and development. However, | | | | 2002. The Ugandan Government has also worked |
| chronic political instability and erratic economic | | | | with donor countries to reschedule or cancel |
| management produced a record of persistent | | | | substantial portions of the country's external |
| economic decline that has left Uganda among the | | | | debts. |
| world's poorest and least-developed countries. | | | | Agricultural products supply nearly all of Uganda's |
| After the turmoil of the Amin era, the country | | | | foreign exchange earnings, with coffee alone (of |
| began a program of economic recovery in 1981 | | | | which Uganda is Africa's leading producer) |
| that received considerable foreign assistance. | | | | accounting for about 27% of the country's |
| From mid-1984 on, however, overly expansionist | | | | exports in 2002. Exports of apparel, hides, skins, |
| fiscal and monetary policies and the renewed | | | | vanilla, vegetables, fruits, cut flowers, and fish are |
| outbreak of civil strife led to a setback in | | | | growing, and cotton, tea, and tobacco continue to |
| economic performance. | | | | be mainstays. |
| Since assuming power in early 1986, Museveni's | | | | Most industry is related to agriculture. The |
| government has taken important steps toward | | | | industrial sector is being rehabilitated to resume |
| economic rehabilitation. The country's | | | | production of building and construction materials, |
| infrastructure (notably its transport and | | | | such as cement, reinforcing rods, corrugated |
| communications systems which were destroyed | | | | roofing sheets, and paint. Domestically produced |
| by war and neglect)is being rebuilt. Recognizing the | | | | consumer goods include plastics, soap, cork, beer, |
| need for increased external support, Uganda | | | | and soft drinks. |
| negotiated a policy framework paper with the IMF | | | | Uganda has about 30,000 kilometers (18,750 mi.), |
| and the World Bank in 1987. It subsequently | | | | of roads; some 2,800 kilometers (1,750 mi.) are |
| began implementing economic policies designed to | | | | paved. Most radiate from Kampala. The country |
| restore price stability and sustainable balance of | | | | has about 1,350 kilometers (800 mi.) of rail lines. A |
| payments, improve capacity utilization, rehabilitate | | | | railroad originating at Mombasa on the Indian |
| infrastructure, restore producer incentives through | | | | Ocean connects with Tororo, where it branches |
| proper price policies, and improve resource | | | | westward to Jinja, Kampala, and Kasese and |
| mobilization and allocation in the public sector. | | | | northward to Mbale, Soroti, Lira, Gulu, and |
| These policies produced positive results. Inflation, | | | | Kapwach. Uganda's important road and rail links to |
| which ran at 240% in 1987 and 42% in June | | | | Mombasa serve its transport needs and also |
| 1992, was 5.4% for fiscal year 1995-96 and 7.3% | | | | those of its neighbors-Rwanda, Burundi, and parts |
| in 2003. | | | | of Congo and Sudan. An international airport is at |
| Investment as a percentage of GDP was | | | | Entebbe on the shore of Lake Victoria, some 32 |
| estimated at 20.9% in 2002 compared to 13.7% | | | | kilometers (20 mi.) south of Kampala. |