Uganda: poverty rate reduced by 15%

Uganda's sustained economic growth has reduced the number of people in poverty by 15 percent in four years, according to the state-run National Bureau of Statistics. A 2009-10 survey seen by Reuters on Wednesday showed the number of people in poverty in east Africa's third largest economy was 7.1 million, down from 8.4 million at the time of the last survey in 2005-06, when the population was smaller.Uganda's economy has been invigorated by the discovery of commercial oil deposits in the Albertine Rift basin on the border with the Democratic Republic of Congo in 2006. The lead explorer, Tullow Oil, has said it expects to start commercial production in the last quarter of 2011, although a lingering tax dispute risks pushing back that target. "Growth effect contributed more to poverty reduction than redistribution. In other words, poverty reduction continues to be driven by growth," one of the report's authors, Sarah Ssewanyana, said in a commentary.

With an estimated population of about 31 million, Uganda has maintained a strong growth momentum over the last decade, spurred by liberal economic policies, an expanding private sector and a steady inflow of aid and foreign investment. The government forecasts growth will hit 6.7 percent in the 2010-11 (July-June) financial year and economic analysts say the anticipated petrodollar bonanza will turbo charge economic expansion and accelerate the reduction in poverty. "Despite significant reduction in poverty, the northern region remains a home for the majority of the poor," Ssewanyana said. According to the survey, poverty levels there stood at 46.2 percent, down from 60.7 percent in the 2005-06 survey. A two-decade insurgency by a brutal rebel force, the Lord's Resistance Army, blighted much of the region's economic activity and displaced the population, causing the area to lag behind other regions. However, the gradual return to peace since 2005 and the allocation of huge reconstruction funds are fuelling a recovery.

Uganda is due to hold a presidential election in February and President Yoweri Museveni, who has come under criticism for rising corruption, repression and nepotism, is expected to face a strong challenge from Kizza Besigye who has stood against him twice before.

Reuters