UG Economic Forum 2023 – Day Two

In the Financial Year 2021/2022, the Agricultural sector contributed UGX 246 billion in tax revenue, an increase of about UGX 7 billion from the previous UGX 167 billion registered in the Financial Year 2020/21.

Despite this modest growth, these numbers fall short of constituting even 1% of the total tax collection, a concern given that the sector employs a substantial 72% of the Ugandan population, predominantly women.

Uganda, home to an estimated 46 million people, witnesses 70% of its populace engaged in agriculture, while a single million individuals are involved in services and manufacturing. Astonishingly, even though a staggering 32 million depend on agriculture for their livelihoods, their collective contribution to the country’s GDP stands at a mere 24%. This disheartening reality underscores the prevalent low agricultural productivity, which in turn fuels poverty rates and hampers tax revenue.

Experts highlighted the need for innovative approaches to enhance agricultural production during the UG-economic Forum.