Introduction

UGANDA IN BIG PUSH STRATEGY TOWARDS PRIVATE SECTOR LED MODERNISATION 

Located almost at the heart of a large emergent East and Southern African market, Uganda presents rare opportunities for investment, trade and tourism business. Already preferred home of many leading corporations and international organisations, the country is one of the fastest growing economies in the world. For the last decade, it has recorded an impressive and sustained GDP annual growth rate of more than 6 percent and has brought inflation to an average of 5.2 percent from more than 200 percent in 1986.

Liberalism and Privatisation - As one of the most liberal economies and foreign exchange markets in Africa, Uganda’s economic miraculous turnaround is a result of more than 15 years of prudent economic policy reforms that have imposed strict fiscal disciplines, restricting public expenditure and ensuring sustained privatization. The Private Sector Development Strategy adopted in the 1990s was geared towards divesting the government out of the majority of about 107 Public Enterprises (PEs) that were in existence. To date privatisation is nearly 95 percent complete in all sectors.

The above measures have earned the country strong approval and support from international financial institutions such as IMF and World Bank as well as bilateral development partners. These achievements have thus helped restore investor and donor confidence and established Uganda as a haven for relative economic stability in the Region – a true Pearl of Africa. As a consequence, Uganda was the very first country to access the original HIOPC initiative in April 1998 and the enhanced HIPC in 2000. India has also extended debt relief to Uganda under the same scheme.

Since 1991, over 2000 Small, Medium and Large-scale enterprises have committed in excess of US$2.5 billion in actual investments. By 1997, accumulated FDI stock had peaked at US$643 million from a mere US$4 million in 1990.

In spite of Uganda’s record performance in economic rejuvenation, modernization still eludes the country, hence maintaining 24 million people as some of the poorest in the world, with per capita income of less than $400. This situation persists despite Poverty Eradication efforts, which in the last decade or two have reduced people living under the poverty line from 44 percent to 36 percent and the number continues to decline.

Big Push Strategy (2000-2005) - In order to bring about fast track economic development and modernization, the government has instituted a comprehensive strategy – The Big Push (BPS) – aimed at developing strategic specific sector interventions programmes by government. The BPS whose first phase emphasizes the rapid transformation of Uganda into a strong producer of high Quality traditional and agro-products ands services that have a direct impact of jumpstarting the modernization of the economy of the country.

The BPS focuses on active and deliberate promotion by government on those agricultural, industrial and services sectors where Uganda has competitive comparative advantage. The BPS is government facilitated but private sector led to create centers of excellence for the following strategic sectors:

	Medical facilities – Investment in modern hospitals;
	High-tech printing and publications facilities;
	Commercial farming in agriculture, fisheries and cotton production;
	Information and communication technology – Mass IT penetration through hardware and software development;
	Financial services – introduction of new financial services that are Big Push compliant;
	Air cargo logistics centers and inland ports to serve regional markets;
	Multi-facility Economic Zones (MFEZ) with appropriate incentives and modern facilities; and,
	Streamlining Government machinery by reducing red tape bureaucracy, instituting transparency and result-oriented management and elimination of corruption – Good Governance.

Uganda - India Relations

A long history underlies trade and economic relations between the people of India and Uganda. In 1994, an agreement on the establishment of a Joint Business Council (JBC) was signed between FICCI and ASSOCHAM of India and the Uganda National Chamber of Commerce and Industry in conjunction with the Uganda Manufactures Association, Uganda Investment Authority, Uganda National Farmers Association and the Uganda Small Scale Industry Association. The JBC’s mission is to carry out more systematic business promotion activities in trade, investment, technology transfer, service and industrial sector and thus become a regular and recognized forum for discussion on the promotion of cooperation between businessmen and industrialists of the two countries.

A Joint Permanent Commission (JPC) also exists between both governments and has the responsibility of strengthening all round cooperation between the two countries. The JPC has taken particular interest in encouraging bilateral trade and economic relations undertaken by the JBC. The JPC deals particularly with cultural and technical cooperation.

Many Indian entrepreneurs have already made substantial investment is Uganda, making India rank among the top six source-countries for Uganda. In late 2002, India and Uganda’s Trade and Finance have led large trade delegations to Uganda and India. Several MoUs have been signed in information technology and other sectors.



Uganda Country Data