Uganda’s Foreign Policy and Economy

Uganda’s Foreign Policy is an aggregation of the domestic policies projected into the international arena. The Ministry of Foreign Affairs is the government agency charged with the implementation of Uganda’s Foreign Policy, which is shaped around three core areas: regional and international peace and security; regional integration and international cooperation; and trade, tourism, investment and resource mobilization. The foreign policy is to support the promotion and protection of Uganda’s national interests abroad – anchored on three broad pillars: national security, national prosperity; and national well being.

At national level, the guiding principles which guide Uganda’s Foreign Policy emanate from the 1995 Constitution of the Republic of Uganda, as specifically laid down in Objective No. XXVIII of the National Objectives and Directive Principles of State Policy. These principles are:

Promotion and protection of Uganda’s interests abroad

Respect of international law and treaty obligations
Peaceful co-existence and non-alignment
Settlement of international disputes by peaceful means
Opposition to all forms of domination, racism and other forms of oppression and exploitation
Active participation in international and regional organizations that stand for peace, and for the well-being and progress of humanity; and
Promotion of regional and pan-African cultural, economic and political cooperation
 

At regional and international levels, there are a number of instruments guiding and supporting foreign policy principles, including but not limited to: the Treaty for the Establishment of the East African Community; The Treaty establishing COMESA; Article Four (4) of the Constitutive Act of the African Union; Article Two (2) of the Charter of the United Nations; and any other treaties, conventions, agreements signed by the Government of Uganda and ratified by Cabinet.

As a landlocked country, fostering regional integration and cooperation is at the centre of Uganda’s foreign policy. Accordingly, regional organizations such as the East African Community (EAC); Inter-Governmental Authority on Development (IGAD); and the Common Market for East and Southern Africa (COMESA) are critical to Uganda’s development and socio-economic transformation.

Economy
Uganda’s economy is liberalized and has been on an upward trajectory since 1986, underpinned by strong macro-economic policies. Over the years, the economy has seen progressive growth, contributing to the current GDP of    Shs. 109 trillion, equivalent to US$ 29.5 billion (2019).  Inter alia, it has been characterized by: increased average incomes for Ugandans to US$ 825 per person in Financial Year 2018/19; average annual growth in formal employment of 9.8% between 2010 and 2017; and growth in the share of industry to the economy to 21%, compared to 11.3% in 1986. The service sector has also grown to contribute 48.7% (2019).

On account of the increasing share of industry and the services sector to the economy, the share of agriculture has reduced from over 50% in 1986 to 22% in 2019. As of 2016, 80% of the labour force was still in the informal sectors of the economy (50% in services and 35.6% in agriculture). Growth in the services sector is especially contributed to by the sustained growth in the tourism sector. In 2018, foreign receipts from tourism reached US$ 1.02 billion, with 1.6 million international tourist arrivals being recorded.

Owing to government’s priority investments in the energy and infrastructure sectors, coupled with policies towards import substitution, value addition and industrialization, the manufacturing sector is fast improving. The manufacturing sector is now able to cater for most of the domestic demand for basic products like cement, tiles, light steel products and consumables such as sugar and soap. Government’s current effort in this regard is geared towards production for export, with a view to bridging attaining a better trade balance.

As part of these efforts, the government has prioritized development Free Zones and operationalisation of industrial parks across the country, both public and private. Some of those already operational include: Bweyogere, Luzira, Kapeeka, Namanve, and Tororo. Industrial parks under development include; Iganga, Jinja, Mbale, Mbarara. The factories industries operating within the parks are especially into agro-processing and manufacturing.

In addition to industrialization, agricultural development – especially commercialization and agro-business; tourism development across the value chain; energy and infrastructure development; ICT and human capital development, are the key priority areas for national development.