Agriculture can save Uganda from the crisis

Sep 02, 2011

THE Uganda Bureau of Statistics (UBOS) on Wednesday announced that annual inflation in August had climbed to 21.4%, the highest it has been in 18 years.

THE Uganda Bureau of Statistics (UBOS) on Wednesday announced that annual inflation in August had climbed to 21.4%, the highest it has been in 18 years.

In July, inflation, which is a measure of general price increases, stood at 18.7%.

The increase was driven by higher food prices, due to low supplies, and a depreciating shilling that made imports more expensive.

This week, Kenya also announced its inflation was up to 16.7% in August for identical reasons.

Tanzania last week also announced an increase in July inflation to 13.3% from the previous month’s 10.9%.

Beyond the price increases, the short term measures to restrict credit and government expenditure cuts are going to cause discomfort in coming months.

These record inflation levels are a wakeup call for the region. Despite the recent dry spell we are not producing significantly lower food than previously.

What has changed is that with the opening up of the common market and the stabilization of the region’s hotspots in Burundi, Eastern Congo and southern Sudan, and a general regional economic growth, demand is growing exponentially.

This is our new reality and the fundamental question our region has to answer to stave off such economic shocks.

Our farm productivity is well below what it can be, because there is no widespread use of technology in our farming practices in terms of better farming practices, employment of economies of scale and an inability to transfer research to the farm.

We should not fail to take advantage of this crisis by focusing our energies on agriculture more seriously as part of long term economic strategy.

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