Uganda: The Bridge to a new Europe
Aired December 2005
Uganda’s reputation as ‘Africa’s Friendliest Country’ stems partly from the tradition of hospitality common to its culturally diverse populace, and partly from the remarkably low level of crime and peaceful reception rewarded to visiting tourists. President Museveni has transformed the ruins of Idi Amin and Milton Obote's Uganda into an economic miracle. He has instigated the philosophy of self-sufficiency and anti-corruption.
Inflation has fallen from 16.1 percent in the past sixteen years to an average 5.2 percent. Uganda’s economic performance has earned praise from International lenders like the International Monetary Fund (IMF) and the World Bank.
Uganda’s transition can be clearly seen in the capital Kampala. The bright modern feel of this bustling cosmopolitan city which spreads across seven hills reflects the ongoing economic growth and political stability that has characterized Uganda. It is complemented by the sloping spaciousness and runaway greenery of its garden setting. In fine light we see the fruits of a nation that is ripe for international cooperation.
FINANCE
Uganda’s economy is one of the fastest growing African economies with stable macroeconomic variables. Consequently, there has been an increase in the demand for a wide range of financial services.
Financial sector reforms are a part of the broad structural adjustment, and stabilization programmes constitute the most remarkable development in this sector. The overall objective of the financial sector reforms is to increase competition and efficiency in the sector. Within the financial services, just like in any other sector, total foreign ownership of any business enterprise is possible.
The financial sector is regulated by the Bank of Uganda.
Commercial banks account for over 90 per cent of the assets of the banking system. They are responsible for providing banking facilities to the public and operate the payments mechanism. The commercial bank system consists of the indigenous commercial banks and the foreign banks. Most commercial banking facilities are concentrated in urban areas. However, two of the local banks have an extensive branch network across the country.
Private sector savings, although still low, have maintained an upward trend. The low level of financial savings is partly explained by the substantial amounts of household savings held in the form of real estate and foreign currency assets. Because of limited access to financial services, the asset composition of rural households is to a large extent determined by the economic activities of the area.
TRANSPORT & INFRASTRUCTURE
As Uganda has attracted a majority of bilateral and multilateral donor funding, the result is that a good portion of the infrastructure has been rehabilitated. The government has managed to rehabilitate most of the roads, airfields, and also has developed several industrial sites. And there is more.
Presently, only a small proportion of the population, mostly in urban areas, enjoys an adequate level of infrastructure services. To the majority who live in rural areas, services are either inaccessible or unavailable. The ministry of Water Lands and Environment is working at improve this on several levels.
Uganda has an extensive road network of sealed and unsealed roads. Driving in Uganda is quite an experience, and is probably the best way to see the country. Getting to the remotest area is usually uncomplicated. The fast-growing network of over 2,000 km (1242 miles) of tarred roads is supplemented by over 6,000 km (3728 miles) of high quality dirt roads and feeder routes.
Air Transport is of strategic importance to the nation as it guarantees an alternative gateway to the rest of the world. It provides the most efficient and quickest transport means to and from Uganda. There is a myriad of national and international Airlines operating at Entebbe International Airport.
Today the Ugandan Telecommunications sector is one of the most liberalized in Africa and reflects the government’s widespread economic reforms. The entry of a Second National Operator (SNO) and three mobile networks has revolutionized the sector. All market segments are experiencing strong growth, while total teledensity is still low at less than 5%.
TRADE & INDUSTRY
Significant progress has been made in reforming Uganda’s overall trade policies. Uganda’s economic policy framework is completely liberal, allowing the free operation of the market forces, with little interference and control by government in private sector operations.
The Uganda Government's strategy is to modernize the economy. It relys on the markets and private investors as the basis for efficient and productive economic activity, while the providing the necessary legal and policy framework and physical infrastructure for private investment to flourish.
Bilateral relations between the United States and Uganda have been good since President Museveni assumed power, and the United States has welcomed efforts to pursue economic reform. Given the huge American market, Uganda is putting special emphasis on attracting investors. With over 22 million inhabitants, ample natural tourism resources and an economy in transition, Uganda offers great potential for foreign direct investment.
AGRICULTURE
Agriculture, the traditional backbone of Uganda's economy employs over 80% of the active population. The massive sugar and textile industries of the 1960s are reviving, along with the large tea estates that have been long neglected. The government controls on the coffee and cotton industry have been loosened to allow the farmer a larger market in which to sell his produce. And Private exporters have been granted licenses. Agro-processing is a major opportunity in so far as it exploits local products by adding value through canning or manufacturing of value added products. There is significant scope for export both to the regional and the international markets. Given the abundance of natural resources like soil, well distributed rainfall, moderate climate, and that some of the areas are 4,000 meters above sea level, Uganda is capable of producing most of the tropical, sub-tropical and temperate fruits.
Livestock production in Uganda is an integral part of the agricultural system of many parts of the country. Livestock production has continued to grow, at a rate of over 4% per year, in response to increasing demand for milk and meat in the local market.
Uganda also is rich in aquatic resources with about 18% of its surface area covered by lakes, rivers and swamps. Uganda has a potential fish production of about 250,000 metric tons (over 275,000 tons) annually. The most important fish productions are in Lake Victoria, which produces about half of the national fishery yield. The smaller lakes, rivers and streams are also important fish sources especially for local communities around them.
It can be roughly estimated that some 500,000 Ugandans are involved in fisheries-related employment. With all its opportunities Uganda is a country looking to the future.
TOURISM
Tourism is the most sensitive of all industries to develop, and is finally attracting investment and interest. Significant progress has been made in the redevelopment of infrastructure in the National Parks. The devastation of the animal populations that took place during the war years is beginning to be repaired through increased control and management. The tourism sector is growing steadily.
Fondly referred to as the "Pearl of Africa", Uganda is saturated in color. The outstanding natural beauty of its people and its landscapes have always stirred inspiration in travelers and residents.
From the source of the White Nile on Lake Victoria to the snow-capped "Mountains of the Moon" to the Mountain Gorillas. Uganda has always offered a fantastic diversity of habitats that support a great variety of wildlife.
Yet there is more to the country than wildlife.
Uganda is the setting for some of the world’s most thrilling adventure tourism scenes. There are the peaks of the Rwenzori, which provide a tantalizing challenge to dedicated mountaineers, as well as the Virunga Volcanoes and Mount Elgon, both of which offer highly rewarding hiking opportunities. They offer striking highland scenery.
More sedately, the myriad islands of Lake Victoria and Bunyonyi are idyllic venues. Alternatively there are numerous forest-fringed crater lakes that stud the rift valley floor around Fort Portal.
Whether you’re a first time safari-goer or a seasoned African traveler, Uganda – with its unique blend of savannah and forest creatures, its rare wealth of mountains and lake habitats – is simply dazzling.
