Development Index: Uganda ranks second in EAC

KAMPALA - Uganda has improved by two positions among countries ranked in the United Nations Human Development Index (HDI), showing progress in the welfare of Ugandans for the second year running.

According to the 2024/2025 HDI report, Uganda now sits in the 157th position out of 193 countries ranked by the UN. 

This is an improvement from the 159th out of 193 countries in the previous year (2023/2024), and from 166th in 2021. In East Africa, only Kenya (143) sits above Uganda in the rankings. 

According to the Index, Rwanda (159), Tanzania (165), DR Congo (171), South Sudan (193), Burundi (187) and Somalia (192) all rank below Uganda. 

The development, experts said, also means Uganda now ties in position with Ivory Coast in West Africa, which improved by 10 places.

The latest development also means Uganda has consolidated its position among the Medium Human Development Index (MHDI) countries. 

MHDI countries are those ranked 125 to 167 on the index, which measures countries’ human development or steps taken to improve the well-being of people in key areas such as education, income earned per person and healthcare.

Healthy lives 

In doing so, the UN uses countries’ average achievements in three dimensions of human development: a long and healthy life, as measured by life expectancy at birth; knowledge, as measured by mean years of schooling and expected years of schooling; and a decent standard of living, as measured by Gross National Income (GNI) per capita in Purchasing Power Parity (PPP) terms in dollars. 

Dr Ezra Muhumuza, a development economist who also works with the Uganda Manufacturers Association (UMA), welcomed the development, saying it means Uganda is reaping dividends from its prioritisation of the social sector in its national development plans. 

“As a country, it is a good indicator; it means the social sector is working,” he said, citing National Development Programme III’s focus on education (literacy), health and rights and freedoms. 

“Some of the targets we set in alignment with global goals (including UN Sustainable Development Goals) we have made strides towards,” Muhumuza added. 

He said these improvements are not only indicators of social development but also of economic development, adding that this is because “social development feeds into economic development.” 

“Much as there is economic development, as a country we are very grateful that we are in progression,” Muhumuza said.

Variations explained 

Explaining variations in progress among East African countries, Muhumuza said investment in social development is the major factor. 

“Kenya’s investment in the social sector is nearly four times more than Uganda’s, and far superior to the countries at the bottom of the HDI,” he said. 

“We need to improve social sector institutions and funding for these institutions. In other words, social services have to improve. You realise that there is a lot of struggling for health services, especially at community level,” Muhumuza added. 

He said some lower health centres are not performing, despite the fact that there is still a large section of the community that entirely depends on these institutions. Muhumuza said this is also the case in the education sector. 

“Many local governments [LGs] do not have budget allocation powers anymore, so this has made some of the LGs work without the resources they need,” he said, adding that this affects the speed at which social services are delivered. 

“A woman in the labour ward is not served by that kind of approach,” he added. Issa Sekitto, the spokesperson of Kampala City Traders Association (KACITA), said the indicators do not accurately reflect what is on the ground. 

“The well-being of people is not hidden; it is seen. If it were to that effect, people would be having disposable income and the propensity to consume would be high, and the purchasing power would also follow suit, and the standard of living would be fair,” he said. 

“In my view, the only people seeing money are politicians; those in industries and businesses are not seeing the cash.” 

Dr Arthur Bainomugisha, the executive director and secretary to the board of trustees of Advocates Coalition for Development and Environment, said the recent roll-out of the Parish Development Model could also have helped. 

“It is not in vain; it is a good investment in the right direction,” he said.