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The Economy of Uganda

Recovery and Reform Under Museveni

After 1986, President Museveni stabilised the economy, liberalised trade and welcomed donors and investors, leading to years of strong growth.

Peace and reform.

1986

A war-torn economy was rebuilt after Museveni took power.

Reforms

Prices, exchange rates and trade were liberalised, and privatisation followed.

Growth

GDP grew at around 6 to 7 per cent a year for two decades.

Concerns

Long rule, governance issues and corruption complaints.

A stable currency

After the 1980s, the shilling stopped collapsing.

Assuming growth always reduces poverty equally

Distribution matters.

Key takeaways
  • Reforms began in 1986.
  • Growth averaged 6-7%.
  • Liberalisation attracted investors.
  • Governance concerns persist.
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