Economic Growth and Rural Poverty Context
Uganda is a low-income country with a predominantly agrarian economy. Agriculture remains the backbone of national development, employing over 70 per cent of the population, the majority of whom reside in rural areas. In FY 2023/24, the agriculture sector contributed approximately 24 per cent to the national GDP and accounted for 42 per cent of total export earnings. Uganda’s economy is projected to grow by 6.0 per cent in FY 2024/25, supported by improvements in infrastructure, trade, and investment.
Despite sustained economic growth, poverty remains a key development challenge, particularly in the northern and eastern regions, affecting 20.3 percent of the population as of 2019/20. The Government’s long-term development strategy, guided by Vision 2040 and the upcoming Fourth National Development Plan (NDP IV), prioritises inclusive rural transformation, sustainable industrialisation, and agricultural productivity. FAO supports this vision by aligning its work with SDGs 1 and 2, aiming to eradicate poverty and end hunger.
 
Agriculture and the Rural Economy
Uganda spans 241,038 square kilometres and is endowed with fertile soils, abundant water resources, and a favourable climate. However, agricultural production is increasingly constrained by land degradation, limited irrigation capacity, and the growing frequency of climate-related shocks such as floods, prolonged droughts, and erratic rainfall. The cattle corridor, which covers about 40 per cent of the country's land area from Karamoja to the southwest, is particularly affected by resource degradation and climate vulnerability.
 
Agriculture is central to Uganda’s food security, rural livelihoods, and employment. The sector is primarily driven by smallholder farmers, who face persistent challenges including low productivity, limited access to markets, and inadequate infrastructure. Key exports include coffee, tea, fish, and horticultural products. The livestock sub-sector contributes around 21 per cent of agricultural value added, with milk and meat production playing a critical role in rural economies. Annual milk production stands at 5.3 billion litres, generating approximately US$264.5 million in export revenue. Coffee remains Uganda’s top agricultural export, earning US$1.7 billion as of February 2025.
 
Despite these achievements, only 35 per cent of Uganda’s arable land is under cultivation and livestock productivity remains below potential. Enhancing productivity requires expanded access to modern inputs, irrigation, mechanisation, and improved extension services.
 
Food and Nutrition Security
An estimated 89 percent of Uganda’s population is food secure. Most households are able to access food through own production and markets, supported by average seasonal harvests. Food prices remain generally stable and affordable, and the national food consumption score reflects an acceptable level of dietary diversity and adequate energy intake.
However, 12 percent of the population remains chronically food insecure, especially in Karamoja, Teso, and Acholi. This is primarily due to poor rainfall performance and increasing climate variability. According to the 2024 Integrated Food Security Phase Classification (IPC), nearly one million people are acutely food insecure, particularly in Karamoja, refugee-hosting districts, and climate-stressed areas. Data from the Uganda Bureau of statics (UBOS) indicate that stunting affects nearly 30 percent of children under five Stunting affects nearly 30 percent of children under five, signaling the need for continued investment in nutrition-sensitive agriculture and social protection.
 
While food availability is generally not a constraint, food access and utilisation are significantly limiting factors in some regions. This is driven by low incomes, inadequate storage facilities, limited nutrition knowledge, cultural preferences, poor sanitation and food preparation practices, and post-harvest losses particularly during festive periods.
 
Key Constraints in the Agriculture Sector
Uganda’s agriculture sector faces several interrelated challenges:

• Low productivity growth: Crop output grows at approximately 2 percent annually, below the 3.3 percent population growth rate (UBOS, 2024), limiting improvements in food security and incomes.
• Reliance on rainfed agriculture: Most smallholders depend on unreliable rainfall, making them highly vulnerable to droughts and floods.
• Limited access to modern technologies: Adoption of improved seeds, fertilizers, mechanisation, and irrigation remains low due to high costs and inadequate extension services.
• Weak infrastructure and post-harvest losses: Poor Road networks, insufficient storage, and limited processing capacity contribute to food losses and inefficiencies across the value chain.
• Restricted access to finance: Smallholder farmers struggle to access credit and affordable insurance, which impedes investment in productivity-enhancing practices.
• Underutilised land: Despite abundant arable land, intensification and sustainable land use remain limited, slowing sectoral growth.

 
National Strategies and FAO Support
The Government of Uganda continues to implement targeted policy frameworks and programmes to improve agricultural performance and food security. The Agro-Industrialisation Programme seeks to commercialise agriculture, while the Four-Acre Model promotes diversified, climate-smart farming among smallholders. The Parish Development Model (PDM) supports rural households through improved access to finance, inputs, and advisory services.
The Fourth National Development Plan (NDP IV) emphasises productivity, resilience, and market orientation in agriculture. It prioritises scaling up irrigation infrastructure, adopting modern technologies, strengthening rural infrastructure, and expanding agro-processing capacity. The Plan also aims to improve access to tailored agricultural finance and enhance extension services to support innovation among smallholders.
 
FAO continues to work closely with the Government of Uganda and other partners to address inefficiencies and climate-related vulnerabilities in the agriculture and food systems. Over the past decade, FAO’s support has focused on climate-resilient crop and livestock production, refugee and host community livelihoods, sustainable fisheries and aquaculture, and integrated land and water management.
Unlocking Uganda’s agricultural potential will require sustained investment in climate-smart agriculture, innovation, inclusive market systems, and transformative rural development.