Overview of the Ugandan Economy
Uganda has substantial natural resources, including fertile soils, regular rainfall, and sizable mineral deposits of copper and cobalt. Agriculture is the most important sector of the economy, employing over 80% of the work force. Coffee accounts for the bulk of export revenues.
The economic reforms implemented by the present government in Uganda since
1987, coupled with political stability, have contributed to economic growth rates averaging 6% per annum in the last decade. This has made Uganda one of the fastest growing countries in Africa.
Inflation is under control and has been maintained below 10% per annum for the last four years. Most economic activities are fully liberalized and open to foreign
There are no restrictions to 100% foreign ownership of investments and no barriers to remittance of dividends. The Uganda\'s shilling is fully convertible and has remained stable over the last years.
The foreign exchange market is now wholly liberalized following a move by government, effective July 1997 to liberalize capital account transactions. Uganda is now one of about only five countries in the whole of Africa that have no restrictions on capital amount transfers.
Within Africa and the merging markets, Uganda enjoys a high status with donors and
Taxes on imports and locally manufactured goods continue to fall in line with the Government's commitment to support the growth of the manufacturing sector.
In general, the environment for private sector investment has improved significantly with the formal economy growing in importance. As well as pure growth, Uganda is seeing a shift from the firmly agricultural based economy of 1986 towards construction manufacturing and regional trade/distribution.