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Located in eastern Africa, Uganda covers an area of 142,000 km². The population is almost 30 million and is growing at a rate of 3.4 per cent per year.  The country's relatively rich soils are suitable for a range of agricultural and forestry crops. Uganda's abundant natural resources support many other economic activities, including tourism and petroleum production.

Agriculture and the economy

After a prolonged period of intermittent civil conflict (1970-1986) Uganda emerged as one of the most consistent economic performers in Africa. The economy has been growing at an average annual rate of about 5-6 per cent. Nevertheless, Uganda is still poor and relies heavily on foreign aid. It was the first country to benefit from multilateral debt relief under the Heavily Indebted Poor Countries Debt Initiative.

The agricultural sector dominates Uganda's economy and the incomes of its people. Farming accounts for 43 per cent of gross domestic product (GDP), 85 per cent of export earnings and 80 per cent of employment. With the exception of small amounts of sugar and tea grown on large estates, nearly all agricultural production comes from the country's estimated 2.5 million smallholder families. In recent years, the annual agricultural GDP has grown consistently at from 3.5 to 5.5 per cent. This is largely because of an increase in the area of land that is cultivated rather than in the productivity of the land originally cultivated.

Public expenditure on agriculture began to decrease in the 1980s. It averages US$3.40 per year per capita, compared to US$21 for ten other countries in sub-Saharan Africa. The agricultural sector receives only about 1.4 per cent of the total national budget. Defense, public administration and education are given the highest priority – agriculture is accorded the lowest. Some 75 per cent of the total agriculture budget comes from development partners.

Source: IFAD