Uganda
Profile
The Republic of Uganda is a landlocked country in East Africa. It is bordered on the east by Kenya, on the north by Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by Tanzania. The southern part of the country includes a substantial portion of Lake Victoria, which is also bordered by Kenya and Tanzania.
Uganda takes its name from the Buganda kingdom, which encompassed a portion of the south of the country including the capital Kampala. Half the population of the country live below the international poverty line of US$1.25 a day.
Uganda has substantial natural resources, including fertile soils, regular rainfall, and sizable mineral deposits of copper, cobalt, gold, and other minerals. Agriculture is the most important sector of the economy, employing over 80% of the work force. Coffee accounts for the bulk of export revenues.
Since 1986, the government - with the support of foreign countries and international agencies - has acted to rehabilitate and stabilize the economy by undertaking currency reform, raising producer prices on export crops, increasing prices of petroleum products, and improving civil service wages.
The policy changes are especially aimed at dampening inflation and boosting production and export earnings. During 1990-2001, the economy turned in a solid performance based on continued investment in the rehabilitation of infrastructure, improved incentives for production and exports, reduced inflation, gradually improved domestic security, and the return of exiled Indian-Ugandan entrepreneurs. Growth continues to be solid, despite variability in the price of coffee, Uganda's principal export, and a consistent upturn in Uganda's export markets.
Geography and Climate
Lake Kyoga serves as a rough boundary between Bantu speakers in the south and Nilotic and Central Sudanic language speakers in the north. Despite the division between north and south in political affairs, this linguistic boundary actually runs roughly from northwest to southeast, near the course of the Nile. However, many Ugandans live among people who speak different languages, especially in rural areas. Some sources describe regional variation in terms of physical characteristics, clothing, bodily adornment, and mannerisms, but others claim that those differences are disappearing.
Although generally equatorial, the climate is not uniform as the altitude modifies the climate. Southern Uganda is wetter with rain generally spread throughout the year. The south of the country is heavily influenced by one of the world's biggest lakes, Lake Victoria, which contains many islands. It prevents temperatures from varying significantly and increases cloudiness and rainfall. Most important cities are located in the south, near Lake Victoria, including the capital Kampala and the nearby city of Entebbe.
Although landlocked, Uganda contains many large lakes, besides Lake Victoria and Lake Kyoga, there is Lake Albert, Lake Edward and the smaller Lake George.
Economics
For decades, Ugandan economy suffered from devastating economic policies and instability, leaving Uganda as one of the world's poorest countries. The country has commenced economic reforms and growth has been robust. In 2008, Uganda recorded 7% growth despite the global downturn and regional instability.
Uganda has substantial natural resources, including fertile soils, regular rainfall, and sizable mineral deposits of copper and cobalt. The country has largely untapped reserves of both crude oil and natural gas. Agriculture is the most important sector of the economy, employing over 80% of the work force, with coffee accounting for the bulk of export revenues.
In the 1950s the British Colonial regime encouraged some 500,000 subsistence farmers to join co-operatives. Since 1986, the government (with the support of foreign countries and international agencies) has acted to rehabilitate an economy decimated during the regime of Idi Amin and subsequent civil war. Inflation ran at 240% in 1987 and 42% in June 1992, and was 5.1% in 2003.
Between 1990 and 2001, the economy grew because of continued investment in the rehabilitation of infrastructure, improved incentives for production and exports, reduced inflation, gradually improved domestic security, and the return of exiled Indian-Ugandan entrepreneurs between 1990 and 2001. Ongoing Ugandan involvement in the war in the Democratic Republic of the Congo, corruption within the government, and slippage in the government's determination to press reforms raise doubts about the continuation of strong growth.
In 2000, Uganda qualified for the enhanced Heavily Indebted Poor Countries (HIPC) debt relief initiative worth $1.3 billion and Paris Club debt relief worth $145 million. These amounts combined with the original HIPC debt relief added up to about $2 billion. Growth for 2001 - 2002 was solid despite continued decline in the price of coffee, Uganda's principal export. According to IMF statistics, in 2004 Uganda's GDP per-capita reached $300, a much higher level than in the Eighties but still at half of Sub-Saharan African average income of 600 dollars per year. Total GDP crossed the 8 billion dollar mark in the same year.
With the Uganda securities exchanges established in 1996, several equities have been listed. The Government has used the stock market as an avenue for privatisation. All Government treasury issues are listed on the securities exchange. The Capital Markets Authority has licensed 18 brokers, asset managers and investment advisors including names like African Alliance, AIG Investments, Renaissance Capital and SIMMS. As one of the ways of increasing formal domestic savings, Pension sector reform is the centre of attention (2007).
Uganda depends on Kenya for access to international markets. Uganda is part of the East African Community and a potential member of the planned East African Federation.
Doing Business in Uganda
Uganda is ranked 112 out of 183 economies in the World Bank’s Ease of Doing Business Survey
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Ease of...
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Doing Business 2010 rank
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Doing Business 2009 rank
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Change in rank
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Doing Business
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112
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106
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-6
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Starting a Business
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129
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129
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0
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Dealing with Construction Permits
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84
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80
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-4
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Employing Workers
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7
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8
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+1
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Registering Property
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149
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156
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+7
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Getting Credit
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113
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109
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-4
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Protecting Investors
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132
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127
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-5
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Paying Taxes
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66
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71
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+5
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Trading Across Borders
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145
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145
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0
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Enforcing Contracts
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116
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118
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+2
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Closing a Business
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53
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53
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0
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Politics and Government
The President of Uganda, currently Yoweri Museveni, is both head of state and head of government. The president appoints a prime minister, currently Apolo Nsibambi, who aids him in governing. The parliament is formed by the National Assembly, which has 332 members. 104 of these members are nominated by interest groups, including women and the army. The remaining members are elected for four year terms during general elections.
In a measure ostensibly designed to reduce sectarian violence, political parties were restricted in their activities from 1986. In the non-party "Movement" system instituted by Museveni, political parties continued to exist, but they could only operate a headquarter office. They could not open branches, hold rallies or field candidates directly (although electoral candidates could belong to political parties). A constitutional referendum canceled this nineteen-year ban on multi-party politics in July 2005. Further the time limit for president was changed in the constitution from a 2 term limit in order to enable the current president to continue in active politics.
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