Labour Day: Uganda’s Economy is Steadily Growing

By Charles Achoda

As Ugandans join the rest of the world in commemorating International Labour Day today 1st May 2021, I would like to take this opportunity to commend government for the economic growth of our country.

Recently, State Minister for finance in-charge of planning, David Bahati said, the country is steadily growing day by day and attributed it to the workers of this country, good leaders and policies among others which are favoring economic growth.

I totally concur with the Minister because many Ugandans are taking advantage of the total peace now in the country and the favorable conditions to do different developments as the government also continues to play her part.

In the F/Y 2018/19, agricultural sector contributed to 22% of the GDP registering an improvement in the growth rates from 2.8% to 5%. Records show that agricultural sector employs about 64% of all Ugandans and about 72% of the total youth population.

Remarkable improvements were especially observed in the food crops sub-sector (maize, cassava and bananas) that grew at an average of 3.7%. The cash crop sub-sector (coffee, cocoa, cotton, tea) grew at an average rate of 6.4% and the livestock sector at 2.1%. The fisheries sub-sector recovered from a slump of -2.1% in 2017/18 to 11.3% in 2018/19, due to strict enforcement of fishing regulations.

When you look at the tourism sector, the country registered increased number of tourists from 196,768 in FY 2014/15 to 332,197 in 2018/19 translating in a revenue rise from UGX 42 billion in FY 2014/15 to UGX 124 billion in FY 2018/19.

By Charles Achoda  As Ugandans join the rest of the world in commemorating International Labour Day today 1st May 2021, I would like to take this opportunity to commend government for the economic growth of our country.  Recently, State Minister for finance in-charge of planning, David Bahati said, the country is steadily growing day by day and attributed it to the workers of this country, good leaders and policies among others which are favoring economic growth.  I totally concur with the Minister because many Ugandans are taking advantage of the total peace now in the country and the favorable conditions to do different developments as the government also continues to play her part.  In the F/Y 2018/19, agricultural sector contributed to 22% of the GDP registering an improvement in the growth rates from 2.8% to 5%. Records show that agricultural sector employs about 64% of all Ugandans and about 72% of the total youth population.  Remarkable improvements were especially observed in the food crops sub-sector (maize, cassava and bananas) that grew at an average of 3.7%. The cash crop sub-sector (coffee, cocoa, cotton, tea) grew at an average rate of 6.4% and the livestock sector at 2.1%. The fisheries sub-sector recovered from a slump of -2.1% in 2017/18 to 11.3% in 2018/19, due to strict enforcement of fishing regulations.  When you look at the tourism sector, the country registered increased number of tourists from 196,768 in FY 2014/15 to 332,197 in 2018/19 translating in a revenue rise from UGX 42 billion in FY 2014/15 to UGX 124 billion in FY 2018/19.  The revival of the national airline that has increased direct connectivity of the country to the rest of the world, expanded ferry services on all major lakes and increased the national paved road network by 3088km.  Government has improved and upgraded 1,584km of road network to tarmac, rehabilitated 503km of road network and constructed 110 urban roads measuring approximately 78.4km.  Increased private investment in the transport sector, through tremendous g
A busy food market - Kampala

The revival of the national airline that has increased direct connectivity of the country to the rest of the world, expanded ferry services on all major lakes and increased the national paved road network by 3088km.

Government has improved and upgraded 1,584km of road network to tarmac, rehabilitated 503km of road network and constructed 110 urban roads measuring approximately 78.4km.

Increased private investment in the transport sector, through tremendous growth in bus, taxi, boda-boda and truck services, which employ a big population of young people.

The country has also witnessed increased power generation from 924.9 MW in 2016 to 1254.2MW in 2020. Therefore, the total length of High Voltage grid coverage is now 2,442km up from 1,453 in 2016. This has enabled establishment of over 5,038 factories which have created over 5, 750,000 jobs.

This development has expanded the economy by more than 10 times from UGX9.5 trillion in FY1995/96 to UGX130 trillion in FY2019/20. Tripled GDP per capita from USD 264 in 1986 to USD 905 in FY2019/20.

The increased inclusion of Ugandans in the financial services sector through online transactions like; mobile money, online banking and agency banking, among others has expanded access to banking services under four broad segments described as, Tier I (commercial banks), Tier II (credit institutions) and Tier III (microfinance deposit-taking institutions); Tier IV (micro-finance institutions and money lenders).

The Ministry of ICT and National Guidance has seen implementation of the National Broadband Policy and the attendant sharing infrastructure networks by telecom operators, hence enhanced efficiency and reduced the price of internet data. The price reduced from $5,000 per Mega-Byte in 2007 to $1,200 per Mega-Byte in 2010, and to $70 per Mega-Byte in 2020. So far, over 4,000km of ICT fibre optic cables have been laid, thereby broadening internet connectivity around the country.

Set up WiFi internet (‘My Ug’), which is accessed by two million people in Kampala and Entebbe from 5:00pm to 6:00am every Monday to Friday, free-of-charge. It is also available 24 hours on weekends.

Connected 1,180 internet sites for Ministries, Departments, Agencies and Local Governments (MDA&LGs) to the National ICT cable networks, there-by offering connectivity to support e-government services around the country.

Indeed water is life, access to clean and safe water has improved from the 65% to 69% in rural areas and from 77% to 79.1% in urban areas, respectively. At least 68,731 villages and 35 districts have water coverage above 80%.

As per the government policy of establishing a secondary school per sub county, over 130 schools have been constructed and more are still being constructed. This shows that the current government is committed to fulfilling her manifesto despite the expected challenges here and there. If the trend continues, literacy levels will increase to 80% in the next five years.

I have also seen remarkable achievements in the health sector. Minister Dr Jane Ruth Aceng and the PS, Diana Atwine should be commended for the good work. Recently, they commissioned the 450 Bed Specialized Women and Neonatal hospital at Mulago. Over 500 housing units in 15 districts for health workers completed, upgrading of health centre II to III’s, III’s to IV and IV to district hospitals is under way. All these are aimed at improving health services in our country.

So, these and many more give Ugandans reasons to smile as they join workers around the world to celebrate the International Labor Day. This day is commemorated in appreciation of the contributions of workers to national development.

This year’s theme is “Enhancing Innovation for Increased Employment Creation and Labour Productivity: A Sustainable Covid-19 Response”.

His Excellency the President of the Republic of Uganda will preside over the function as Chief Guest at State House Entebbe.

The Writer is a Communications Assistant Ministry of ICT and National Guidance.

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