Uganda has enjoyed an annual economic growth rate averaging between 6 percent and 7 percent over the last five years, in large part due to market-based reforms and sound economic policies. The share of the population living beneath the poverty line has fallen from 56 percent in 1992 to the current level of 23 percent. Yet millions of Ugandans remain in dire poverty. Faster economic growth is hampered by the country's undeveloped transportation and electricity networks, low agricultural productivity, lack of transparency, and regulatory challenges, including corruption, which keep business costs high and hinder investment, economic growth and job creation.
USAID builds Uganda's capability to mitigate the environmental impacts of oil exploration and production. USAID’s ecotourism programs provide local communities opportunities to develop tourism businesses and services that will enhance communities’ connection to Uganda’s natural resources, which will reduce threats to biodiversity and protect Uganda’s diverse landscapes.
Private Sector Development
Constraints to private sector competiveness in Uganda include the lack of capital available to potential entrepreneurs and investors, undeveloped infrastructure, and a weak enabling environment for business. USAID’s investments in agriculture are central to efforts to increase trade and develop the private sector. USAID continues to work closely with the Government of Uganda and other development partners to enhance private sector competitiveness and increase investment in roads and other infrastructure. The USAID Development Credit Authority promotes private sector investment by providing credit to agriculture enterprises.
Last updated: January 03, 2014