Uganda economy

Endowed with significant natural resources,in 1999. Private sector investment, largely
including ample fertile land, regular rainfall, andfinanced by private transfers from abroad, was
mineral deposits, the economy of Uganda has14.9% of GDP in 2002. Gross national savings as a
great potential, and it appeared poised for rapidpercentage 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 economicwith donor countries to reschedule or cancel
management produced a record of persistentsubstantial portions of the country's external
economic decline that has left Uganda among thedebts.
world's poorest and least-developed countries.Agricultural products supply nearly all of Uganda's
After the turmoil of the Amin era, the countryforeign exchange earnings, with coffee alone (of
began a program of economic recovery in 1981which 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 expansionistexports in 2002. Exports of apparel, hides, skins,
fiscal and monetary policies and the renewedvanilla, vegetables, fruits, cut flowers, and fish are
outbreak of civil strife led to a setback ingrowing, and cotton, tea, and tobacco continue to
economic performance.be mainstays.
Since assuming power in early 1986, Museveni'sMost industry is related to agriculture. The
government has taken important steps towardindustrial sector is being rehabilitated to resume
economic rehabilitation. The country'sproduction of building and construction materials,
infrastructure (notably its transport andsuch as cement, reinforcing rods, corrugated
communications systems which were destroyedroofing sheets, and paint. Domestically produced
by war and neglect)is being rebuilt. Recognizing theconsumer goods include plastics, soap, cork, beer,
need for increased external support, Ugandaand soft drinks.
negotiated a policy framework paper with the IMFUganda has about 30,000 kilometers (18,750 mi.),
and the World Bank in 1987. It subsequentlyof roads; some 2,800 kilometers (1,750 mi.) are
began implementing economic policies designed topaved. Most radiate from Kampala. The country
restore price stability and sustainable balance ofhas about 1,350 kilometers (800 mi.) of rail lines. A
payments, improve capacity utilization, rehabilitaterailroad originating at Mombasa on the Indian
infrastructure, restore producer incentives throughOcean connects with Tororo, where it branches
proper price policies, and improve resourcewestward 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 JuneMombasa 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 wasEntebbe on the shore of Lake Victoria, some 32
estimated at 20.9% in 2002 compared to 13.7%kilometers (20 mi.) south of Kampala.