Uganda is the pearl of Africa, ever green and located in East Africa with a population of over 40 million people. The country’s economy is largely based on agriculture, which accounts for over 70% of the country’s employment and is the primary source of income for many households.
In recent years, the Ugandan government has been working to diversify the economy and promote other sectors such as tourism, manufacturing, and services. The government has also implemented policies aimed at improving the business climate and attracting foreign investment.
In terms of exports, Uganda’s major exports include coffee, gold, tea, fish, and horticultural products such as flowers and vegetables. In 2020, Uganda’s total export earnings amounted to approximately $3.4 billion, according to the World Bank. Coffee alone accounted for about 17% of total export earnings, while gold contributed 11%.
On the other hand, Uganda’s imports are dominated by petroleum products, machinery and equipment, vehicles, and pharmaceuticals. In 2020, Uganda’s total imports amounted to approximately $6.5 billion, according to the World Bank.
The country’s trade deficit continues to widen, and there have been efforts to boost exports and reduce imports. The Ugandan government has been encouraging investment in value addition and manufacturing to increase exports of processed goods, which have a higher value compared to raw commodities. The government has also been working to increase the domestic production of goods that are currently being imported.
In conclusion, Uganda’s economy is largely dependent on agriculture, and the country has a significant trade deficit. However, the government is implementing policies to diversify the economy and promote other sectors. With continued efforts to improve the business climate, increase exports, and reduce imports, Uganda’s economy is poised for growth in the coming years.