Uganda’s Quest for Middle-Income Status Hampered by Subsistence Production- Babalanda

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The Minister for Presidency, Hon. Babirye Milly Babalanda, has highlighted that Uganda is facing challenges in reaching middle-income status due to a significant portion of its population being stuck in subsistence production.

Babalanda said this during the closure of the 4-day retreat for district leaders of the Central Region at the National Leadership Institute (NALI) in Kyankwanzi on August 24, 2023.

According to Babalanda, the Manifesto Implementation Unit-Office of the President organised this retreat with the main goal of addressing the responsibilities outlined in the 2021–2026 manifesto as well as the 23 presidential strategic directives and guidelines.

In her speech, Babalanda urged local government leaders to embrace a mindset focused on commercial production so Uganda can make rapid progress towards becoming a middle-income nation.

She asserts that reaching this objective will require collaboration among leaders, who must put aside conflicts resulting from different ideas and work together effectively to promote socio-economic transformation.

“A large portion of Ugandan households, 39%, are still stuck in subsistence production, making it hard for Uganda to attain middle-income status. Therefore, as leaders, what are your initiatives? You need to change the mindsets of these people so that they enter the money economy,” Babalanda said.

She stressed that in order to include as many Ugandans as possible in the formal sector, the government is vigorously supporting the Parish Development Model (PDM) and the Emyoga poverty alleviation programmes.

Babalanda revealed that the government has allocated a total of Ugx. 1.059 trillion for the PDM revolving fund, and this financial year, an additional Ugx. 1.1 trillion has been designated for the PDM initiative.

She also cited other impediments to Uganda’s path towards middle-income status, and these include the high cost of conducting business, which reduces Uganda’s competitiveness in the international market, the difficulty of acquiring land for various state development initiatives, and the negative effects of corruption on the country’s efforts to progress its socioeconomic situation.

Brig. Gen. Charles Kisembo, the Director of NALI, emphasised the value of the right ideological orientation among local government leaders as a key pillar of driving socio-economic transformation. He stressed the importance of understanding the values and principles outlined in the NRM manifesto.

“In our roles as leaders, we require a solid ideological foundation in our country, one that ensures national cohesion, a sentiment vital for Uganda’s socioeconomic transformation. Take the knowledge you have gained here to make a positive difference in the lives of those you lead,” he said.

The retreat’s primary goals align with the significance of Kampala and the central region for Uganda’s advancement. The central area had 27% of the nation’s total population, according to figures from 2022 compiled by the Uganda Bureau of Statistics (UBOS).

The retreat drew participation from leaders representing 27 local governments in the central region.

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