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Make middle-income status work for all
Uganda’s transition to lower-middle-income status was hailed as a major economic milestone, but persistent poverty and unemployment raise questions about how widely the benefits of that progress are being felt, writes Leaticia Nalwoga
Nalwoga Leaticia. (Courtesy)
By: Admin ., Journalist @New Vision
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OPINION
By Leaticia Nalwoga
In the 2022 State of the Nation Address, it was indicated that Uganda had finally crossed into middle-income status, a milestone expected to mark a new chapter in the country’s economic story.
For a nation long categorised among the world’s poorest, this announcement ignited hope that years of economic reforms, infrastructure projects and national initiatives, such as the Industrial Parks Development Programme, the Parish Development Model, and the Emyooga programme were bearing fruit.
According to the Government’s figures, Uganda’s gross national income per capita for the 2021/2022 financial year rose above the World Bank threshold of $1,086, positioning the country within the lower middle-income bracket. However, World Bank records for the same period placed the figure at $840 per capita, about 23% lower than the national estimate.
This manifested in persistent levels of poverty, where about 20.3% of Ugandans still live below the poverty line, and youth unemployment remains above 13%. These disparities highlight the need for stronger linkages between economic performance and human development.
According to the Government’s figures, Uganda’s gross national income per capita for the 2021/2022 financial year rose above the World Bank threshold of $1,086, positioning the country within the lower middle-income bracket. However, World Bank records for the same period placed the figure at $840 per capita, about 23% lower than the national estimate.
This manifested in persistent levels of poverty, where about 20.3% of Ugandans still live below the poverty line, and youth unemployment remains above 13%. These disparities highlight the need for stronger linkages between economic performance and human development.
The persistence of poverty and limited access to decent employment calls for improved implementation of national programmes under the ongoing Fourth National Development Plan (2025/26-2030/31), particularly those that promote agro-industrialisation, enterprise growth and employment creation as central pathways for sustaining middle-income progress.
The Government continues to strengthen the foundations that sustain Uganda’s middle-income status. The country maintains and invests in quality healthcare to enhance productivity and wellbeing, while deepening education and skills development to keep pace with the emerging economic opportunities. The Government efforts in value addition, agro-processing and industrial diversification have greatly expanded employment and improved household incomes.
These initiatives reflect a strong commitment to building a productive and competitive economy. To sustain this momentum, greater emphasis should be placed on deepening these interventions so that more Ugandans benefit from emerging opportunities. Institutional efficiency, transparency, and accountability should continue to be strengthened to ensure that services remain effective and equitable. Guided by the National Development Plan IV, continued investment in transport, energy, and digital infrastructure should remain a key priority, as it supports agricultural transformation, regional trade, and entrepreneurship, further reinforcing Uganda’s steady progress toward inclusive and sustainable growth.
If leaders, policymakers, and communities focus calmly on reducing inequality and expanding opportunities, Uganda will not only maintain the milestone it has reached but also build a stronger foundation for a future of sustainable prosperity.
The writer is a masters of business administration student at Makerere University Business School
The Government continues to strengthen the foundations that sustain Uganda’s middle-income status. The country maintains and invests in quality healthcare to enhance productivity and wellbeing, while deepening education and skills development to keep pace with the emerging economic opportunities. The Government efforts in value addition, agro-processing and industrial diversification have greatly expanded employment and improved household incomes.
These initiatives reflect a strong commitment to building a productive and competitive economy. To sustain this momentum, greater emphasis should be placed on deepening these interventions so that more Ugandans benefit from emerging opportunities. Institutional efficiency, transparency, and accountability should continue to be strengthened to ensure that services remain effective and equitable. Guided by the National Development Plan IV, continued investment in transport, energy, and digital infrastructure should remain a key priority, as it supports agricultural transformation, regional trade, and entrepreneurship, further reinforcing Uganda’s steady progress toward inclusive and sustainable growth.
If leaders, policymakers, and communities focus calmly on reducing inequality and expanding opportunities, Uganda will not only maintain the milestone it has reached but also build a stronger foundation for a future of sustainable prosperity.
The writer is a masters of business administration student at Makerere University Business School