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Despite facing challenges like inflation and supply-chain bottlenecks, Uganda’s economy is gaining momentum. According to the World Bank’s latest report, the country’s economic activity is projected to grow by 5.7 per cent in FY22/23.
The services sector, driven by rapid growth in information and communication technologies (ICTs), has been the driving force behind the post-pandemic recovery. Real estate and construction have also performed well. However, the agricultural sector has faced difficulties due to droughts and heavy rains, leading to rising costs.
Uganda’s per capita income has shown improvement, nearing the lower-middle-income threshold at approximately US$930 for FY21/22.
The World Bank’s report emphasises the need for reforms in Uganda’s tourism sector, which currently attracts millions of tourists and earns up to US$1.6 billion annually. To unlock its full potential, the report recommends investments in safe vehicles, improved infrastructure, and eco-friendly technologies.
While wildlife and nature remain attractive, diversifying tourism offerings is crucial to meet the evolving demands of visitors seeking authentic experiences.
Transparency in revenue sharing, alignment of consultation and allocation processes with local communities’ objectives, and deeper research are recommended to accelerate the sector’s growth.
The report calls for increased funding for the sector and suggests reviewing existing agencies, improving government spending efficiency, and establishing collaboration mechanisms among tourism agencies and departments.
Developing new products to engage tourists, enhancing existing tourism sites, and adopting innovative marketing approaches using technology and travel-tech startups are also recommended.
By implementing these reforms, Uganda aims to unlock the full potential of its tourism industry and contribute to the country’s economic growth.
