As Uganda reels from the recent dissolution of the Uganda Coffee Development Authority (UCDA), a new report by Twaweza's Sauti Za Wananchi survey sheds light on the harsh economic realities facing Ugandans especially in rural areas heavily reliant on agriculture.
According to the report, a staggering 68% of Ugandans struggle to make ends meet, with communities in the eastern and northern regions facing the brunt of economic hardship, despite their heavy reliance on agriculture for both income and food.
The Twaweza report reveals that climate change, low crop yields, rising commodity prices, and stagnant incomes are compounding the difficulties for Uganda's rural population.
These factors, coupled with a lack of employment opportunities, insufficient capital, limited access to education, and pervasive corruption, paint a grim picture of the current economic situation.
"Citizens report that making a living is becoming harder," the report highlights, stressing the cumulative impact of these challenges on families nationwide.
The coffee sector's turmoil adds yet another layer of uncertainty for Uganda's agricultural community. Opposition leaders, such as Joel Ssenyonyi, have been vocal in condemning the UCDA's dissolution, warning that the move could jeopardise the livelihoods of coffee farmers and disrupt one of Uganda's most critical export industries.
In a recent interview, Ssenyonyi emphasised, "This isn't just a battle for MPs; it's a battle for all Ugandans," pointing to the chaos surrounding the bill's passage as indicative of a "broken country" in need of repair.
Meanwhile, President Museveni has defended the UCDA's dissolution as a step toward efficiency and economic reform, asserting that more Ugandans are now part of the "money economy" than ever before.
Museveni cited statistics showing that, as of 2023, 67% of households are engaged in the money economy, contrasting with 2013 figures that left 68% of homesteads outside it.
The President credited the Operation Wealth Creation (OWC) initiative for pulling households into the economy and claims that the UCDA's merger will further bolster economic integration.
However, the Twaweza report challenges this optimistic outlook, revealing that many Ugandans continue to struggle to access basic necessities. It suggests that poverty reduction hinges not just on economic initiatives but on increased government capital investment, alongside a concerted effort to tackle corruption factors that many citizens feel remain unaddressed.
Adding insights to the broader economic picture, economist John Walugembe, Executive Director of the Federation of Small and Medium Enterprises, outlined several key drivers for economic recovery, including the financial services, ICT, and real estate sectors.
He emphasised that economic empowerment goes beyond government initiatives like the Parish Development Model, which, he said, "cannot solve everyone's problems." Walugembe argues that to lift Ugandans out of poverty, they must enter the market with valuable skills, engage in entrepreneurship, and add value to exports.
He also highlighted emerging sectors in the creative economy, such as community tourism and innovation, as avenues for enhancing Uganda's economic standing.
Walugembe also called for improvements in Uganda's policy environment, urging the government to create conditions that allow businesses to thrive.
"We need to do more value addition and export better," he noted, adding that policies should also alleviate the economic burden on Ugandans by reducing direct taxes, thus enhancing purchasing power.
"If people are able to buy goods and services, the government will still benefit from consumption taxes," he explained.
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For farmers in Uganda's north and east, where agriculture is a way of life, the impacts of the coffee bill and broader economic policies are deeply personal.
The ongoing debate over the UCDA's dissolution has raised questions about whether the government's approach truly addresses the daily struggles of ordinary Ugandans.
With high poverty levels, inadequate access to resources, and concerns about climate resilience, rural communities are left wondering if their voices and livelihoods are being adequately prioritised.
The outcome of the coffee bill is now emblematic of a broader struggle between government reforms and citizens' lived realities.
As policymakers and the public alike grapple with the complexities of Uganda's economic future, the voices captured in the Twaweza report underscore a pressing need for policies that address inequality, empower farmers, and provide a sustainable path forward for all Ugandans.
