Since the mid 1980’s, Uganda’s economy has moved from recovery to growth (Uganda Vision 2040) according to Dr. Patrick Birungi Executive Director- UDC
However, the economy has grown at a slow pace (about 6% average growth rate since 1981/82 to date) and thus delayed to achieve the NDP II target of attaining lower middle income status by 2020.
Nonetheless, in 2022, the country attained a per capita income of USD 1,046, which is above the lower bound (USD 1,036) that should be sustained for three (3) consecutive years before a country can be classified as a middle income country.
According to the President and, the NRM government, the key bottle necks that have led to slow progress towards socio-economic transformation are;
Failure to fully eliminate the unprofitable subsistence nature of our societies.
Dependency on foreigners thinking that will guarantee our & security.
Exporting raw materials of less value. This challenge has persisted since colonial times to date.
Uganda used to supply raw materials (palm oil, cotton, leather and minerals, among others) to European factories and in turn, on average, the country would earn just 10% or less of the value of the final product.
High cost of doing business. H.E. the President stresses that businesses cannot be profitable and competitive globally unless input costs are low.
