Uganda has substantial natural resources, including fertilesoils, regular rainfall, and sizable mineral deposits of copper and cobalt.Agriculture is the most important sector of the economy, employing over 80%of the work force. Coffee accounts for the bulk of export revenues.
The economic reforms implemented by the present governmentin Uganda since 1987, coupled with political stability, have contributed toeconomic growth rates averaging 6% perannum in the last decade. This has madeUganda one of the fastest growing countries in Africa. Inflation is undercontrol and has been maintained below 10% per annum for the last four years.Most economic activities are fully liberalized and open to foreign investment.There are no restrictions to 100% foreign ownership of investments andno barriers to remittance of dividends.
The Uganda's shilling is fully convertible andhas remained stable over the last years. The foreign exchange market is now wholly liberalizedfollowing a move by government, effective July 1997 to liberalize capitalaccount transactions. Uganda is now one of about only five countriesin the whole of Africa that have no restrictions on capital amount transfers.Within Africa and the merging markets, Uganda enjoys a high status withdonors and lenders.
Taxes on imports and locally manufactured goods continue tofall in line with the Government's commitment to support the growth ofthe manufacturing sector. In general, the environment for private sector investmenthas improved significantly with the formal economy growing inimportance. As well as pure growth, Uganda is seeing a shift from the firmlyagricultural based economy of 1986 towards construction manufacturing andregional trade/distribution.