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