For decades, Uganda’s 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’s economy has great potential. Endowed with significant natural resources, including ample fertile land, regular rainfall, and mineral deposits, it appeared poised for rapid economic growth and development at independence.

The economy recorded fairly steady economic growth throughout most of the last decade 6% annual growth in 2007 and, in contrast with much of the rest of Africa, has enjoyed a series of good harvests. Inflation was at 5.8% in 2007.

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. While agriculture used to account for 56% of the economy in 1986, with coffee as its main export, it has now been surpassed by the Services sector, which accounted for 52% of percent GDP in 2007.

Major Facts:

GDP: US$9.3 billion
Main exports: Coffee, fish and fish products, tea, tobacco and cotton.
Main imports: Capital equipment, vehicles, petroleum, medical supplies and Cereals.
Main trade partners: Kenya, Belgium, UAE and the Netherlands.

Agricultural products supply nearly all of Uganda’s foreign exchange earnings, with coffee (of which Uganda is Africa’s second leading producer) accounting for about 23% and fish 7% of the country’s exports in 2007/2008.

Exports of non-traditional products, including apparel, hides, skins, vanilla, vegetables, fruits, cut flowers, and fish are growing, while traditional exports such as cotton, tea, and tobacco continue to be mainstays.

Significant discoveries of oil in the Albertine Rift in western Uganda in 2008 pose both a major challenge and a major opportunity for Uganda’s economy and development. As of late 2009, the private sector had invested considerably in the oil sector, but production had not yet begun pending further feasibility studies on the funding and construction of the necessary infrastructure to support the industry.