USAID's Strategy in Uganda

Uganda has made substantial progress in social and economic development since the USAID program was revived in 1980, moving from recovery and reconstruction toward sustainable growth and poverty reduction. Significant challenges, nonetheless, remain.

The annual population growth rate averaged an alarmingly high 3.3 percent over the past decade, and neither job opportunities nor agricultural productivity has kept pace. The worldwide slump in coffee prices reduced the value of Ugandan coffee exports to $80 million in 2002, compared to $457 million in 1995. Although free primary education is available to all Ugandan children, only 60 percent complete primary school, and 35 percent of adult Ugandans are illiterate. Despite a declining sero-prevalence rate, the HIV/AIDS pandemic continues to exact its toll on Uganda's population in terms of death, disability, lost productivity and numbers of orphans and vulnerable children. At least one-quarter of Ugandan households provide for the needs of one or more orphans. Persistent conflict and insurgency over the past 15 years have disrupted the lives of at least 4,000,000 Ugandans. The number of people internally displaced in northern Uganda has risen to an all-time high of 840,000. Continued conflict in northern Uganda costs the economy in excess of $100 million per year in lost production.

By emphasizing development solutions in the areas of economic growth, health, education and the environment, USAID/Uganda program fully supports the U.S. national interests in the country and East Africa region. The reduction of poverty and conflict will lessen the likelihood of the region serving as breeding ground for terrorism and other destabilizing movements. The USAID/Uganda program addresses the root causes of terrorism - poverty, poor health, a lack of educational and development opportunities. The opening of markets and economic cooperation will also promote growth and increased opportunities for U.S. trade and investment, in addition to lessening dependence on international humanitarian assistance.

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