Uganda’s economy is growing at an above-average rate, but in view of a rapidly growing population, this has not yet been enough to achieve resounding success in the fight against poverty. Currently, projects in the infrastructure and energy sectors, which are intended to improve transport routes and the power supply, offer hope for higher growth.

However, national debt is restricting the scope for government investment. Compliance issues are also slowing down the willingness to invest, although Uganda is in a better position here than many other developing countries. In addition, the government re-elected in 2021 promises political stability, albeit at the cost of repressive policies.

Current Oil investments are controversial – for some an important driver of growth, for others a fall from grace in terms of climate policy and at the same time a financial risk, as the demand for oil could soon fall noticeably in the course of the global energy transition.

Economy. According to the IMF, Ugandas economy grew by 4,6 percent in 2023. For the current year, economists predict a growth rate of 5.7 percent. The gross domestic product per capita rose from the equivalent of 241,9 to 964,4 dollars in the last 20 years. Inflation recently stood at 5.7 per cent. National debt has reached around 48 per cent of GDP.

Population. Uganda has around 48 million inhabitants. Annual population growth has declined from 3.5 to 3.0 percent in the last five years. In the same period, the fertility rate has fallen from 6.8 to 4.6 children per woman. Life expectancy was at 63 years recently, 11 years more than 2004. Around 45 percent of the population has access to electricity (twenty years ago, it was 10.5 percent).

Governance. On Transparency International’s latest Corruption Perceptions Index, Uganda ranks 141th out of 180. The score of 26 points brings the country to the same level as countries like Guinea and Kyrgyzstan. Unfortunately, Uganda has taken steps backwards recently: in 2019 the score was 28 points.

Sources and further information:

World Bank: https://data.worldbank.org/country/uganda

Africa Business Guide https://www.africa-business-guide.de/de/maerkte/uganda

Germany Trade & Invest: https://www.gtai.de/de/trade/uganda/wirtschaftsumfeld/wirtschaftsdaten-kompakt-uganda-156740

Transparency International: https://www.transparency.org/en/cpi/2023/index/nga