Following the recent National Budget Conference, which set an ambitious USD 500 billion economy goal by 2040, Uganda is gearing up to fully monetize its economy. With a focus on transforming agriculture, industrialization, and expanding digital markets, the country’s leadership is determined to propel the economy forward. But the big question is: how do we ensure this growth reaches everyone, particularly those in rural areas?
For many Ugandans, the situation is tough. Thousands are leaving the country, seeking better opportunities abroad, especially in Arab countries, because the local economy isn’t offering enough jobs. According to the Ministry of Gender and Labour, over 120,459 Ugandans left the country between January 2022 and December 2023 in search of employment. The reality is that economic opportunities are limited, and people are looking for greener pastures elsewhere.
One of the biggest barriers to growth is infrastructure. While the government talks about progress, many regions still struggle with inadequate infrastructure. For instance, it can take three hours to travel from Kampala to Mukono – a distance that should take far less time. This reality has raised concerns about how the economy can grow when basic road connectivity is such a challenge.
Political analyst Joseph Ochieno put it bluntly when he said: “When you create an infrastructure economy where it takes three hours to reach Mukono, how then should we expect fast development in other areas as well? We’ve been running an experimental economy that hasn’t worked.”
Ezra Muhumuza, the Executive Director of the Uganda Manufacturers Association, added that the gap between rural and urban economies is widening: “The rural economy in Uganda seems to be detached from the urban economy because we have concentrated on macro indicators of development.”
In many rural areas rich in minerals, locals are not benefiting as they should. Instead, only a small group of people are reaping the rewards, leaving many financially excluded. Muhumuza explained:
“In rural areas where minerals are found, the local residents are not financially empowered, and only a few individuals benefit. There was a national agenda to establish rural banks, but some districts still lack banking institutions. It is impossible to fully monetize the economy when these essential financial institutions are unavailable in certain regions.”
The solution? Decentralizing industrial development across the country. Muhumuza suggests a rethink: “We need a strategy of industrial reversal. Let’s have well-distributed industrial zones, not just in Namanve, but all over the country to enable fair distribution.”
Uganda’s economy also heavily relies on agriculture, with around 70% of factories based in agro-processing. For MP John Musila, adding value to raw materials is key to getting more out of what the country produces:
“We have factories, and about 70% of them are agro-related. Can we add value to raw materials so that we benefit more from what we produce?”
As Uganda pushes towards its 2040 vision, the journey towards full monetization must be inclusive. Growth must be felt by everyone – not just a few – and policies must be created to ensure that the majority of Ugandans truly benefit from this economic transformation.