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