Self-employed / cottage industries

Since the 1990s, peace, stability and economic reforms have allowed Uganda to prosper and the economy has been growing at over five percent each year.

In 2005, Uganda, Tanzania and Kenya launched the ‘East African Community Customs Union’ for trade in the region; Burundi and Rwanda joined these countries in 2009.

But with the population doubling over the last two decades, unemployment is high. Many Ugandans therefore set themselves up in unregulated or informal jobs, such as brick-making and charcoal-selling.

With the growing population, there is a huge demand for housing in Uganda and the construction industry is a fast-growing sector. Most houses are made from cured bricks of clay/soil. Traditional methods for firing these bricks use a lot of firewood, increasing deforestation. Modern and more sustainable techniques are available, but these require investment and training.

Since electricity and gas are expensive, over 90 percent of Ugandans rely on charcoal or wood fuel for their energy needs. Many young men seek a living by cutting down trees to make charcoal.

Uganda’s trees are disappearing at an alarming rate. The use of charcoal-efficient stoves is therefore being encouraged, as well as alternative fuels such as briquettes. These can be made from discarded materials like coffee hulls, sawdust and waste paper.

Brown beans and black gold

With its rich soils and rainfall in the south, agriculture accounts for a large share of Uganda’s export and domestic activity. Coffee is the main export, bringing in over 350 million dollars each year and accounting for nearly half the country’s earnings from agricultural produce. One-fifth of the population is estimated to earn some or all of their income from coffee.

Over 90 percent of this coffee is grown by small farmers (typically working less than one hectare/three acres of land) and they are very dependent on global coffee prices. The government is trying to encourage farmers to diversify.

Two major types of coffee are produced in Uganda – i) Arabica is grown in highland areas and was brought to the country in the 1900s  ii) Robusta is a native variety and can be found growing wild in the rainforests of Uganda. Uganda is one of the world's major Robusta producers.

New revenues will soon flow into Uganda from oil reserves found in the west (around three billion barrels-worth). If handled well, the discovery will boost the country’s economy, with the oil worth an estimated 50 billion dollars.
Despite the growing economy, recent rises in the cost of food and fuel have caused unrest in 2011.