It to 8% caused by many factors

It is important to note that Uganda
is a country that has emerged from a very long regime of dictatorship a
terrible civil war and a devastation AIDS epidemic at the time of the
independence of the country. A 1993 paper 
of the World Bank reports that between 1970 and 1980, exports declined
by more than 50 percent and so was the GDP with a 25 percent decrease (Kapoor
et al 11). On the economic front, the Ugandan economy seems to be facing many
challenges. According to the 2015 report from the World Bank, the economy has
experienced an inflation of up to 8% caused by many factors including the
depreciation of the currency . Because of that, the monetary policy was
tightened and caused an increase the treasury bills and the financial sector
was the first sector impacted. In fact, there were fewer investments and a high
cost of borrowing from banks in the private sector. The economy was also
impacted by decrease in oil prices on the foreign markets. Lower oil prices
meant less investment in the oil and sector and therefore less export revenues
(Sebudde 2016).

Another aspect to look at is poverty
which is defined as the lack of money to satisfy basic needs. According to the
2016 poverty assessment of Word Bank Group, the level of Ugandans living below
the poverty line has declined by 11.4 percent between 2006 and 2013 for a
population where half of the population used to  live below the poverty line. Still according
to the report, several factors have contributed in reducing poverty such as an
increase in income from agricultural activities thanks to favorable prices
implemented by the government in certain regions .An improvement in one of the
main sector in the Ugandan sector meant that there were going to be more
investment from both the government and from the private sector (“Uganda,” 2016).  Despite an important poverty reduction, the
situation in other regions was less encouraging. For example in the northern
part of the country, there was an increase of more than 20 percent  between 2006 and 2013 compared to the central
region which is highly due to the lack of access to infrastructures and the
limited access to financial services. This clearly shows that there is a great
difference between the regions where the government invests more money in some
strategic areas and not in some others. For example there was a huge gap
between the social security spending for the other Sub-Saharan African
countries which was of 2.8 percent of the GDP compared to Uganda with only 1
percent in 2013 (“Uganda,” 2016).

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