The African nation of Uganda has achieved considerable progress in lifting its people out of poverty. According to a poverty assessment conducted by the World Bank, extreme poverty (people living on less than 1.9 dollars a day) in Uganda fell from 53.2% to 34.6% from 2006-2013. A major influence in this improvement is agriculture, as well as good rainfall, favorable prices, education, urbanization, and political stability.
With that being said, it’s important to note that almost two-thirds of the agricultural income growth of households is attributable to high commodity prices (explained in part by sound policies) and favorable weather, not by the adoption of modern farming techniques and practices. However, if they were to apply new technology and modern techniques, they could increase output and therefore earn even more money, pulling themselves out of poverty even further.
Over 60% of the population has a job in the agricultural industry. It is the backbone of Uganda’s economy as it also contributes to over 70% of Uganda’s export earnings and provides the bulk of the raw materials for predominantly agro-based industries. Their cash crops primarily include cotton, tea, tobacco, and coffee.
The significant increase in agricultural income is eliminating extreme poverty. The country has managed to sustain economic growth averaging 7% annually. However, efforts to improve non-monetary dimensions of poverty such as access to adequate sanitation and electricity, are still needed to improve the standard of living for Uganda’s poorest.
Improve Food Security
The global hunger index score for Uganda was 26.4 in 2016 meaning the level of hunger in the country is “serious.” The score placed them at 87 out of 118 developing countries in hunger rank. If agricultural practices continue to get better it could also improve food security in Uganda. Until then, malnutrition remains a significant economic burden on the country. Uganda spends approximately 899 million dollars a year on malnutrition, according to the United Nations Economic Commission for Africa (UNECA).
If they were to improve agricultural methods, not only would it produce more income, but it would also increase food insecurity and alleviate the financial burden of the country as a whole. The Africa Growth Institute at Brookings encourages the government to improve agricultural security by increasing access to productivity-enhancing inputs like credit, fertilizers and improved seeds.
Ruth Hill, senior economist and co-author of the report, explained:
The use of agricultural inputs remains low, despite the important gains they would represent for farmers. In 2012, only one in four farmers was using fertilizer for their crops, while only one in ten used pesticides. Similarly, less than 12% of farmers received extension services—all of which affect their yields.
Uganda has an aspiration to attain the status of an upper-middle-income country by 2040. If they continue on the path they are currently on they could achieve this milestone.
