The Global Green Growth Institute (GGGI) partnered with the Government of Uganda to support with mainstreaming Green Growth into Uganda’s Vision 2040 and the 5-year National Development Plan II (NDPII) through the Green Growth Pathways Project. GGGI has been working with the Global Commission on the Economy and Climate, and The New Climate Economy (NCE), and the Ugandan Economic Policy Research Centre (EPRC) to conduct a macro economic analysis on the potential of Green Growth in Uganda. The report focuses on the economic potential and the affordability of Green Growth in Uganda, as well as recommendations for action.
Uganda has seen an average of 7% annual economic growth over the last two decades. This has resulted in a reduction in headcount poverty, from 56% in 1992-1993 to 20% in 2012-2013. Additionally, around half a million jobs have been created annually and access to basic services has improved. To build on this progress, Uganda will need to place an even greater emphasis on diversifying the economy and overcoming a number of constraints to development that could limit future prosperity for a growing, young, and increasingly urbanized population. This is critical as the country strives to reach upper middle-income status by 2040, realize the Sustainable Development Goals (SDG), and deliver on its international commitment to low-carbon economic growth as part of the Paris climate change agreement.
Uganda’s leaders understand that they will need to reconsider its growth model to deliver economic and social outcomes at the same time as protecting natural capital, managing the impacts of climate change, and using environmental policy to actually drive growth: a “green growth” model. This green growth model will require a continued focus on macroeconomic stability, improving the investment climate, and investing in health and education. It will also need to include an enhanced focus on improving the productivity of agriculture, developing high-value services and industry, providing access to modern energy, and harnessing the opportunities from urbanization. All are features of the development priorities outlined in the NDPII, and the President’s strategic priorities for 2016-2021.