The National Budget framework paper for the upcoming financial year 2024/25 outlines an optimistic trajectory, projecting a surge to 21.7 per cent, with further growth to 23.1% in 2027/28 – the highest on the record in more than a decade.
The growth marks a considerable improvement from the 11.3 per cent recorded in 2017/18. This projection underscores the government’s unwavering commitment to accelerating the agro industrialization program, a pivotal component of the National Development Plan III.
The initiative aims to modernize and commercialize Uganda’s agricultural sector, with the ultimate goal of enhancing household incomes, according to the national budget framework paper.
Agriculture currently plays a significant role in Uganda’s GDP, contributing about 24 per cent in the financial year 2022/23, and is a crucial factor in the country’s export earnings, accounting for more than 40 per cent, according to official government data.
Approximately 68 per cent of Uganda’s working population is employed in the Agricultural sector. However, despite its potential, only 35 per cent of Uganda’s arable land is currently cultivated, according to the United Nations Food and Agricultural Organization.
The agro-industrialization program, a key focus of NDP III, presents a golden opportunity for Uganda to fulfill its long-term aspirations of increasing household incomes. The program aims to add value to agricultural raw materials, promote the expansion of high-value product exports, and address post-harvest losses.
The ministry of Finance has outlined performance targets for the agro-industrialization program, including increasing value addition and boosting the export value of priority agricultural commodities, among others.
If these targets are achieved, Uganda’s agro-industrialization efforts could reap significant benefits, creating a ripple effect of inclusive growth, employment opportunities, and sustainable economic development.
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