Sustainable peace, security and macro-economic stability continued to prevail. Sustained peace, security, and a stable macro-economic environment have provided the basic anchor for economic growth and development. During the period 2010 – 2019, Uganda has continued to enjoy peace and security in all regions of the country. Notably, the north and Karamoja regions have experienced sustained economic growth due to the restoration of peace and security. As a result, these two regions have registered a significant reduction in poverty levels over the ten-year period. Further, the economy has been characterized by a stable macroeconomic environment underpinned by low and stable inflation averaging 5 percent.
SUMMARY
- The economy expanded more than 2 times from UGX64 trillion in FY 2010/11 to UGX128 trillion in FY2018/19 in nominal terms.
- GDP per capita has grown from USD 844 in FY2011/12 to USD 878 in FY 2018/19
- Domestic revenue collection increased from UGX5.02 Trillion in FY2010/11 to UGX16.359 trillion in FY2018/19 in nominal terms.
- Total exports of goods and services grew from USD 4.9 billion in FY2013/14 to USD 5.4 billion in FY2017/18, nominal terms.
- Remittances increased from USD 819 million in FY2010/11 to over USD 1.4 billion in FY2017/18 in nominal terms
- The total paved roads network as a percentage of total national roads increased from 8 percent in 1986, to 15.8 percent (3,317km) in 2011/12 and to 21.1 percent (or 4,551 km) as of May 2018
- The proportion of the labour force in paid employment increased from 17.3 percent in 2011/12 to 19.5 percent in 2016/17
- Access to and utilization of health services has significantly increased with the population living within a 5km radius of a health facility increasing from 83 percent in 2012/13 to 86 percent in 2016/17.
Facts & Figures: The 11 Greatest Economic Achievements of President Museveni as economy expanded to UGX128 trillion.
- The economy expanded more than 2 times from UGX64 trillion in FY 2010/11 to UGX128 trillion in FY2018/19 in nominal terms. Over the NDPI and NDPII period, the economy has remained relatively resilient in spite of a challenging global economic environment, geopolitical challenges and the deepening impacts of climate change. The rebound in real GDP growth in FY2017/18 to 6.2 percent (after a sluggish growth of 3.6 percent in FY 2012/13) is evidence of a relatively robust economy. At present, the economy is projected to grow above 6.0 percent. The relatively strong performance of the economy over the last ten years is a result of the aforementioned continued peace that the country has enjoyed a stable domestic macro-economic environment and continued robust investment in the country’s infrastructure, particularly in roads and energy.
- GDP per capita has grown from USD 844 in FY2011/12 to USD 878 in FY 2018/19. The size of the economy has consistently grown in excess of the population growth rate. This has resulted in an increase of the GDP per capita, in spite of the population growing from 34.9 million in 2015 to 40.3 million as of June, 2019. However, the increase in the GDP per capita, remains below the NDPII target.
- Domestic revenue collection increased from UGX5.02 Trillion in FY2010/11 to UGX16.359 trillion in FY2018/19 in nominal terms. The size of the domestic revenue is critical in determining the country’s ability to finance its development without relying excessively on development assistance. Domestic Revenue collection by the Ugandan Revenue Authority (URA) between the period FY2010/11 to FY2016/17 has seen a steady increase. Gross revenue collections by URA grew from UGX5.02 trillion in FY2010/11 to UGX14.5 trillion in FY2017/18. However, at 12.9 percent of Uganda’s GDP, the tax revenue collected remains too low to support Uganda’s developmental requirements. The informal nature of much of the country’s economy, tax avoidance and weak capacity in revenue collection deny Uganda of up to 40 percent of total revenue that may be collected. Reforms to reduce tax avoidance, expand the tax base by tapping into semi-formal economic activities, and improve the efficiency of URA, remain tasks for the country and will be a major focus of NDPIII.
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- Total exports of goods and services grew from USD 4.9 billion in FY2013/14 to USD 5.4 billion in FY2017/18, nominal terms. Growing the value of Uganda’s exports is key to the country’s efforts to maintain its debt sustainability and earn enough foreign capital to pay for the importation of required goods and services, particularly intermediate goods which will be critical for the early stages of the country’s industrialization. Over the course of NDP I and NDP II period, Uganda’s exports grew in value from USD 4.9 billion in FY2013/14 to USD 5.4 billion in FY2017/18. Tourism, in particular, remains one of the best performing sectors under service exports. Visitor arrivals increased from 945,899 in 2010 to 1,505,669 in 2018, which earned the country foreign exchange revenue amounting to USD 1.6 billion.The improved security situation in the country undoubtedly contributed to this healthy growth. The volume and value of commodity exports, however, remain comparatively low and stagnant. This growth is expected to be even stronger when the Africa Continental Free Trade Area (AfCFTA) is fully operationalized. In addition, the continuation of a policy of clustering through fully serviced and spatially concentrated industrial parks should be encouraged to deepen and broaden the knowledge base of companies, attract foreign investment and increase local employment while at the same time contributing to a diversification of the economy and the increased production of locally made products for the local market.
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- Remittances increased from USD 819 million in FY2010/11 to over USD 1.4 billion in FY2017/18 in nominal terms. Remittances from Ugandans abroad increased significantly from USD 819 million in FY2010/11 to USD 1.4 billion in FY17/18. The increased inflow of foreign exchange through remittances impacted positively on the economy through boosting aggregate demand and economic growth as well as the national savings pool available for investment. Consequently, gross domestic savings as a percentage of GDP have grown from 14.5 percent in FY 10/11 to 16.5 in FY17/18, while investment has grown from 21.1 percent to 28.5 percent of GDP over the same period.
- The total paved roads network as a percentage of total national roads increased from 8 percent in 1986, to 15.8 percent (3,317km) in 2011/12 and to 21.1 percent (or 4,551 km) as of May 2018. It is now possible to drive on a paved road from Arua to Kabale (an equivalent of 899 Kms) or from Busia to Arua in a single day. Further, the dual road carriage road network has increased from about 16 km to over 80km as of December 2018 with the completion of the Kampala – Entebbe Express way. Though travel time has been reduced on national roads, increased cargo traffic on these roads has served to erode much of the positive gains. In this regard, total alignment of the Uganda National Physical Development Plan 2018-2040 with NDPIII is required.
- National access to electricity increased from 11 percent in 2010 to 24 percent in FY 2018/19. The cost of energy reduced from 9 cents and 16 cents in FY2012/13 to 8 cents and 9.8 cents for extra-large and large industries by September 2018, respectively.
- The proportion of the labour force in paid employment increased from 17.3 percent in 2011/12 to 19.5 percent in 2016/17. The percentage of the working labour force increased from 79.1 percent to 81.1 percent over the same period. However, labour underutilization remains a challenge as a large population of Ugandans are underemployed i.e. being either highly skilled but working in low paying jobs or working part-time.
- Access to and utilization of education services has significantly increased. Government continued to invest heavily in the education sector over the NDPI and NDPII period. Consequently, 92 percent of all parishes now have a government aided primary school, while 71 percent of all sub-counties have a government aided secondary school. Most regions of the country also now have a public university. In addition, government has promoted participation of the private sector in the provision of education. As a result, primary school enrolment increased to 8,655,924 children and 1,457,277 for secondary education in FY2016/17. Enrolment at the tertiary level now stands at about 259,000 of which 162,299 are attending universities. The aggregate impact of all this is an increase in literacy rate (of persons aged 10 years and above) from 70 percent in FY2012/13 to 74 percent in 2016/17, and average years of schooling from 4.7 in FY2012/13 to 6.1 in FY2016/17.
- Enrolment at Business, Technical and Vocational Education and Training (BTVET) increased significantly. Skills development has also been facilitated by the refurbishment and establishment of technical and vocational institutions, especially at the district level. Currently, 42 percent of all districts have at least one government aided technical and vocational institution providing varying levels of skills development. Consequently, enrolment into BTVET increased from 25,262 to 129,000 between 2008 and 2017. Progress has also been registered towards the establishment of four centres of excellence at UTC Elgon for civil works and building technology; UTC Lira for highways construction and drainage, bridges and road construction; UTC Bushenyi for food manufacturing and food processing; and UTC Bukalasa Agricultural College for crop and animal husbandry. More investment and closer alignment of the training provided with the principles of NDPIII will be required.
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- Access to and utilization of health services has significantly increased with the population living within a 5km radius of a health facility increasing from 83 percent in 2012/13 to 86 percent in 2016/17. By 2018, 75 percent of the population lived within a five-kilometer radius of a health facility. The health infrastructure network has improved in the country and currently consists of 2 national referral hospitals, 19 regional referral hospitals, 147 district hospitals, 193 HC4s (medical officers present); 1250 HC3s (clinical officers present), and 3610 HC2s (enrolled comprehensive nurses present). Significant progress has also been made in the provision of specialized medical care in cardiology and gynaecology.A modern state of the art women’s hospital with a capacity of 320 beds was opened in Mulago in 2018. The heart and cancer institutes of Mulago hospital have also been expanded and improved. This has increased access and utilization of health services. In-patient malaria deaths have reduced from 20 per 100,000 in 2016/2017 to 9.38 per 100,000 in 2017/2018 largely due to the effective distribution of insecticide treated nets (ITNS). HIV deaths reduced by 58 percent (56,000 deaths to 23,000 deaths) between 2010 and 2018, and new infections reduced from 92,000 to 52,000.In addition, between FY2012/13 and FY2016/17, infant mortality per 1,000 live births has gone down from 54 to 43 deaths of children, maternal mortality decreased from 438 to 336 deaths per 100,000 live births, and stunting has reduced from 33 percent to 29 percent, respectively. The aggregate impact of all this has been the increase in life expectancy by 9 years from 54.5 in 2012 to 63.3 years in 2017.
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