A country’s income status is determined by looking at its Gross National Income (GNI) per capita, which is the dollar value of a country’s final income in a year, divided by its population.
Before, only two partner states in the East African Community, Kenya and Tanzania, had a lower middle income status, with the latter only achieving it recently.
This means Uganda will now have jumped to the stage Kenya and Tanzania are currently at and reach a level that has been achieved by less than 10 African countries. The less than 10 African countries in the category that Mr Museveni seeks to join with Uganda include South Africa, Namibia, Botswana, Equatorial Guinea and Mauritius. Middle income is about the economy growing bigger compared to the population giving us high levels of GDP per capita. President Museveni says government has also decided “to avoid the trap of falling into tax-subsidies and cuts” in response to escalating prices of essentials.
He also expressed confidence that Uganda will maintain its spot above the middle income status GDP per capita minimum of about $1,030. Uganda has reached the middle income status despite an onslaught of crises in the past three years, President Museveni said on Tuesday.
Uganda, a landlocked country with vast untapped mineral resources that includes oil reserve of 6 billion barrels now joins a list of African countries that have managed to leave extreme poverty and set a sustainable path to modernity.
Note that just like Tanzania and Kenya which are also rich in natural resources, Uganda’s growth has been powered mainly by rain-fed informal and undocumented Agriculture and services such as tourism and has been growing at an average of 5% for the last 30 years, one of the Highest economic growth rates on the Universe.
Formally, the economy of Uganda advanced by 5.2% year-on-year in the fourth quarter of 2021, accelerating from a 3.8% rise in the previous three-month period. It was the fourth consecutive quarter of growth, after a pandemic-induced recession, driven by the services sector (8.9%), primarily accommodation & food services (27.4%) and professional, scientific & technical services (36.9%). Industry (6.8%) also expanded solidly. Meanwhile, the agricultural sector shrank 1%, led by a 7.8% decline in food crops growing activities.
The economy of Uganda has grown at an average annual growth rate of 4.9% in the last four years and is ranked the 15th largest economy in Africa, ahead of Congo, Dem. Rep. In 2004, Uganda hit her highest economic growth at 12.1%.
According to official data, the nation’s economy stood at about $45.7billion by the exchange rate method or $131 billion by the Purchasing Power Parity (PPP) system- one week to the FY2022/23 Budget Day. This means that the GDP per capita is $1046. We have now passed that figure of middle income status ($1,030),” Mr Museveni observed as he delivered the annual State of the Nation Address in Kampala.
You need to sustain this for two to three consecutive years to be declared a middle income country,” he echoed.
I’m used to problems. When people are panicking, I am never bothered because I have handled bigger problems. But the most serious problem I don’t want is lack of food,” the president said.
On Tuesday, the 77-year-old leader of a country with millions of unemployed citizens further urged amplified Agricultural production to suit global demands.
“Our strategy is that everything agricultural that is not consumed instantly should be processed industrially, so it’s preserved to be able to reach distant markets,” he noted.
Two years ago, Tanzania also entered middle income status. We are hopeful that Congo, Burundi, Rwanda and South Sudan can follow suit as East Africa forges a path to sicioeconomic and political unity.
The Truth is, AFRICA IS MAKING IT. Stop listening to those who want you to give up working. Keep pushing. We black people shall Rule this Planet soon.
Aggregated by #JagoMinyang
Sources: The World Bank, Uganda Bureau Of Statistics (UBOS)