Peasant agricultural production was the predominant economic activity in Uganda`s precolonial times. Despite the active trade in ivory and animal hides linking Uganda with the east coast of Africa, long before the arrival of Europeans, most Ugandans were subsistence farmers. After declaring Uganda, a protectorate in 1893, cotton cultivation increased in importance after 1904 and by 1910 cotton had become Uganda’s leading export. In the following decades, the government encouraged the growth of coffee, sugar and tea plantations. Uganda has experienced severe economic setbacks brought about by depraved leaders like Dr. Milton Obote and Idi Amin Dada, but all this is behind her and she has started her walk towards economic freedom.
After seizing power in January 1986, President Yoweri Kaguta Museveni with the new NRM government published a political manifesto with several points called the Ten-Point Program which emphasized the importance of economic development, declaring that an independent, self-sustaining national economy was vital to protect Uganda’s interests and currently Uganda is on her way to fully realising all the objectives that were set out for her in 1986. (See History of Uganda`s Trade)
As at 2019/20 government spending continues to increase, underpinned by public infrastructure and capital investments for the nascent oil and gas industry. Expenditures have increased faster than domestic revenues, widening the fiscal deficit in 2019. The deficit is largely financed through external borrowing, supplemented with domestic securities. Despite the rise in the deficit, Uganda is classified at low risk of debt distress. However, debt reached an estimated 43.6% of GDP in 2019, up from 25% in 2012, raising medium-term concerns. Lending remains within IMF limits, but risks have increased due to higher costs of debt servicing and infrastructure investments. By 2021 because of the effects of the Corona Virus Pandemic on the country`s economic activities, real GDP growth is expected to contract by up to 1%, compared to 7.5% growth in 2019, and, as a result, real per capita GDP growth is expected to contract by about 4.5%.
Below are some sites to visit to fully immerse yourself into Uganda`s economic story and behold her economic vision for the future.
In the outskirts of Kampala in Kasubi along Kampala – Hoima highway, lies four of the Kings of Buganda (Bassekabaka), who ruled during the periods of imperialism and are directly responsible for the initial spread of Christianity in the Eastern Africa (1870s – 1960s). These include Ssekabaka Muteesa I, Ssekabaka Mwanga II, Ssekabaka Daudi Chwa II and Sir Edward Frederick Muteesa II. Kasubi Royal Tombs were inscribed as a UNESCO World Heritage Site in December 2001 and have since become a must visit location for all tourists in Central Uganda.
In the outskirts of Kampala in Kasubi along Kampala – Hoima highway, lies four of the Kings of Buganda (Bassekabaka), who ruled during the periods of imperialism and are directly responsible for the initial spread of Christianity in the Eastern Africa (1870s – 1960s) These include Ssekabaka Muteesa I, Ssekabaka Mwanga II, Ssekabaka Daudi Chwa II and Sir Edward Frederick Muteesa II. The tombs are the final resting place of Uganda`s First President, President Kabaka Fredrick Muteesa II who was also at the helm of ensuring Uganda`s Independence in 1962. Kasubi Royal Tombs were inscribed as a UNESCO World Heritage Site in December 2001 and have since become a must visit location for all tourists in Central Uganda.
Construction of the Uganda Railway started in 1896 and ended in 1926. Its construction led to an influx of Indian coolies that were brought to Uganda as labour for the construction of the railway. Many of the Indian coolies remained in Uganda and took trade in textile, manufacturing and general trade as economic activities in Uganda. Over 80,000 descendants of these migrant Indians were later expelled from Uganda by President Idi Amin Dada in 1972 and their businesses were awarded to Amin`s cronies. The Uganda Railways building is also one of the oldest buildings in Uganda.
Established in 1966, by Act of Parliament, the bank is wholly owned by the government but is not a government department. This body is responsible for protecting the Ugandan currency and using approved fiscal policies to stabilise the Ugandan economy. Visiting the state owned bank will open up your mind to Uganda`s fiscal journey and its delicate interplay with the trade and economics of the state.
The Rhino Camp ginnery was constructed by a Greek businessman known as Morgan Margah. The work started in 1923 and finished in 1927. Its location was strategic because Rhino Camp was a docking and repair station for steamer ships that were the backbone of water transport through the River Nile.
In 1922, the colonial government opened the Arua-Rhino Camp road that became the main transit route to Pakwach that had the option of a railway link to Kampala. Rhino camp also has an airstrip for light planes providing fast means of travel for officials and businessmen.
The ginnery did not just offer employment opportunities but also steered the business that flourished in the adjacent market. The Greeks ran the facility up to 1957 when the West Nile cooperative union took over the management. The facility annually handled about 21,000 bales each containing 185kg of cotton, which was turned into lint after removing the seeds. That time farmers sold cotton at sh300 per kilo which they say had more monetary value than today. At the peak of its golden times in the 1950’s and 1960’s, the ginnery directly employed 200 – 300 people and had thousands of farmers supplying cotton.
Visiting this ginnery will give a sneak peek into the cotton ginning industry that made Uganda flourish in her precolonial times.
During the second decade of the 21st Century, NOTU emerged as the largest national trade union. While initially struggling to be relevant and undergoing significant internal divisions between 2000 and 2010, by 2018 the confederation had absorbed unions which had broken away from rival COFTU and increased membership through organizing. Between 2010 and 2018, NOTU’s membership grew by more than three times and represents more than 90% of organized workers in Uganda. Visiting NOTU will give you an in-depth appreciation of Uganda`s initiatives to drive and nurture Uganda into a profitable trade and industry zone.
In 1966, Dr. Milton Obote abolished kingdoms together with the positions of President and Vice President and concentrated all power with himself as Prime Minister for the Republic of Uganda. The twin office buildings below belong to the administration of the Prime Minister of the Republic of Uganda. It is not where Dr. Obote sat, but it carries his historical legacy as Uganda`s first Prime Minister. The old Prime Minister`s Office is located on Colville street, Kampala.
This historical building has housed 7 parliaments the first one was on 1961 and the last one in recent 2020. The foundation stone for the Parliamentary Building was laid on December 18th, 1956, by the then Governor of Uganda Sir Andrew Cohen. Construction of the main building commenced in 1958. On the October 5th 1962 the then Prime Minster Apollo Milton Obote laid the foundation stone for the independence Arch, at the entrance to the Parliamentary Building. It is here that many of Uganda`s economic decision has been enacted by the Parliament since 1986.
The Ministry of Trade, Industry and Cooperatives (MTIC) is a cabinet level ministry of the government of Uganda. The mission of the ministry is to “develop and promote a competitive and export-driven private sector through the acceleration of industrial development”, with the ultimate objective being the growth of the Ugandan economy. The ministry is headed by a Minister appointed by the President. Visiting this ministry will give you significant insight into Uganda`s trade history and vision in the next 50 years. It will also highlight investment opportunities, grants and other advantages that can be taken advantage of by both local and international investors.
This historical building has housed 7 parliaments the first one was on 1961 and the last one in recent 2020. The foundation stone for the Parliamentary Building was laid on December 18th, 1956, by the then Governor of Uganda Sir Andrew Cohen. Construction of the main building commenced in 1958. On the October 5th 1962 the then Prime Minster Apollo Milton Obote laid the foundation stone for the independence Arch, at the entrance to the Parliamentary Building. It is here that many of Uganda`s economic decision has been enacted by the Parliament since 1986.
This street in known to have had most of the Asian Businesses that were expelled by President Idi Amin in 1972. Visiting this street will give you a stroll through time as you interact with the local community that still has a significant number of Indian businesses to this day.
Uganda has 2 state houses in Entebbe and in Nakasero whereas state house Entebbe has significant importance in more recent history, state house Nakasero has the longest history of housing Uganda`s Presidents. Visiting the national treasures will not only illuminate your understanding of how far Uganda has come in good governance, they are also a testament of Uganda`s stability since 1986.
By 2017, Uganda had declared 27 Industrial Parks to facilitate the growth of industry to boost the value of Uganda`s products on the international markets. These parks have been designed in search a way that investors incur low set up and production costs heavily subsidized by the Government of Uganda to ensure their profitability. In turn majority of their labour must be Uganda citizens, and products are sold as Ugandan products. It has also been part of the country`s strategy to revolutionaries Uganda`s industrial sectors and the newly formed Namanve Industrial Park and Soroti Industrial Parks are evidence of the administration steering Uganda in the direction of economic independence. Visiting these parks will deepen your appreciation of Uganda`s economic direction. In addition, you can visit Soroti Fruit factory and experience some of Uganda`s natural sweet juices from home grown fruits like mangoes, pineapples, passion fruit among other flavors
This is the oldest national communication platform in Uganda and has lived to see almost all of Uganda`s presidents. The platform is state owned and has a mix of both local and urban TV and radio stations that spun the entire country. Visiting UBC in the heart of Kampala will open your eyes to the long sightedness of Uganda`s previous political administrations. In previous unstable administrations, this is the communication platform that was used to inform Ugandans of what was happening throughout the country.
Coffee is Uganda`s leading export since precolonial times. Uganda`s coffee was ranked 3rd best in the world behind Ethiopia and Kenya by professional coffee tasters in a survey of the top 16 coffee-growing countries in the world. To visit Uganda`s coffee producing districts will give you insights into why Uganda`s coffee is among the world`s best.
The Owen Falls Dam was constructed in 1938 by the colonial British to provide hydroelectricity and be an incentive for foreign companies to invest in setting up industries in Uganda. It was the first hydroelectric dam in Uganda and it supported all precolonial coffee, tea, cocoa and mining industries. Uganda has in the recent past complimented it with the new Nnalubaale Power station along with 6 other Dams. The Dam`s bridge which had started becoming weak was also recently relieved of heavy duty with the newly constructed Nile Bridge to ease the transportation of people and products across the region.
The ginnery is Uganda`s oldest ginnery and was known to produce cotton for large scale export. The ginnery is said to have been fully operational by 1911 and supported over 11 districts of cotton growers throughout the Eastern region of Uganda.
Since 2010, expansion of tea activities increased as part of the Presidents Poverty Eradication Campaign, and this led to the development of the tea strategy to expand tea production, processing and marketing within the old and new growing areas through the provision of tea seedlings and advisory services. To effectively promote the production of the crop in the country, in 2014/15 financial year government handed the task of providing tea seedlings to the (National Agricultural Advisory Services (NAADS). That is when NAADs started buying and distributing tea seedlings to farmers covering 17 tea-growing districts. From 2015 to date, NAADS has distributed close to 500 million tea seedlings to farmers. Most of the tea-growing districts are in South Western Uganda (Greater Ankole and Greater Kigezi Sub-regions), a few in western Uganda (Kyenjojo and Kabarole), Mityana in central Uganda and Zombo in northern Uganda.
According to statistics from the Uganda Tea Association (UTA, 2013), tea is the third major foreign exchange earner, contributing 0.36 per cent of Uganda’s Gross Domestic Product. Even with lower production, tea exports rank as Uganda’s second largest agricultural export only rivaled by coffee.
Visiting Uganda`s tea production districts will not only be sight to behold but will also give an in-depth insight into why tea from Uganda is highly demanded world-wide.
This is a fast developing sector in Uganda and it provides economic productivity among Uganda`s cattle keeping communities in Northern and Western Uganda. By June 2019, annual milk production in the country had risen to 2.4 billion liters, with export earnings from the sector, bringing in US$100 million per year. However, the earning potential could increase to US$500 million annually, if the country would control the high death rates in exotic cattle.
Dairy farming is a major activity in the southwestern, central, and northeastern parts of the country, with the sector contributing significantly to the economic, nutritional, and employment opportunities of the rural communities in those areas. Uganda’s Central and Western Regions account for about 50 percent of national milk production. This production is predictable and available all year round. During the dry season, the northern, northeastern, and eastern parts of the country experience a drastic reduction in milk output. Uganda has a very vibrant diary industry producing milk, cheese, ghee and other milk products.
Visiting the Diary Farm and Production Plants will give you firsthand experience of Uganda`s diary production process and give deep insight of why you Uganda`s milk should be part of your staple diet.
To ease international trade within the East African Community and COMESA countries, Uganda opened 6 One Stop Border Posts among which are the Busia and Malaba Stations. These are responsible for over 80% of Uganda`s imports and exports. Visiting them will give you knowledge of Uganda`s relationship with its regional partners and deliberateness of trade purpose across the region. These OSBPs sit all the relevant organs concerned with international trade in the same office to make it faster for importer and exporters to clear their goods in less than 24 hours. This is in a bid to improve import and export public services throughout the region.
Most of Uganda`s imports almost always end up first in this Kikuubo market before they get distributed throughout the country. This market receives over 3,000,000 million people daily all coming to buy products at wholesale prices for their businesses scattered across the country. Visiting Kikuubo will give you a taste of the heart of Uganda`s economy
President Yoweri Museveni has invested heavily in building infrastructure that will lead to the eventual enabling of Uganda`s economic potential. A case in point is the Entebbe Express Way which you must visit to have a feel of Uganda`s commitment to economic progress.
Located in the heart of Kampala City, this taxi park is where the over 2,500,000 million people that go to Kampala every day for various economic activities get their primary commute on a daily basis. With over 12,000 taxis that go through it every day on 307 designated routes, the economic activities and trade that this taxi park facilitates is in millions of dollars. Visiting it will give you an experience of the average Ugandan commuter trader and the nature of Uganda`s trade economy.
Whereas Uganda is on the road to industrialisation, she still has so many Ugandan thrive in a very subsistent economy. To facilitate better trade conditions for market vendors, modern markets have been built for citizens to easily sell their produce in a safe and clean environment. Visit one of these markets to buy the best fresh home grown agricultural products.
La Foret Gardens, Muyenga
Plot 3161 Bukasa Close, off Tank Hill Rd, Kampala