Many countries in Sub-Saharan Africa like Uganda have been posting impressive rates of economic growth over the past decade and experiencing increasing urbanisation, but the pace of industrialisation has remained slow.
And despite investments in infrastructure like roads and the spread of modern technologies like mobile telephony, several African countries have largely remained exporters of primary commodities. In many cases, labour has moved from more productive roles to less productive ones. These were some of the findings by studies carried out under the International Policy Research Institute (IFPRI).
“Economic growth ultimately stems from rising productivity within different sectors of the economy and directing a country’s limited resources, including its labour force, to increasingly productive activities,” observed Ms Margaret McMillan, a deputy director at IFPRI.
Other than Uganda, the studies covered Botswana, Ethiopia, Ghana, Malawi, Mozambique and Nigeria. Highlights from the Ugandan study showed that agriculture was the biggest employer—involving up to 85 per cent of the population, thus the largest source of income and livelihood, though the sector’s contribution to Gross Domestic Product (GDP) had declined to just 20 per cent. Compared to other sectors, agriculture has continued to remain sluggish but a source of the most of the export earnings. In this, the role of exports of fish, flowers and other horticultural products was significant.
With the shrinking of agriculture’s contribution to GDP, the services sector, which has benefited from foreign investment and remittances from abroad, has filled the gap. But it was noted that in spite of the increased value, the number of Ugandans employed in the sector had in fact declined over the last 10 years.
Another factor pointed out was the high population rate. At 3.4 per cent, Uganda has one of the highest population growth rates in the world. Interestingly, this was surpassed by urban growth that increased at 5.4 per cent between 1991 and 2002. One of the conclusions that the researchers arrived at was: “The high population growth rate of Uganda poses an immense challenge for Uganda’s economic development. The increasing number of Ugandans engaged in agriculture is more a reflection of the inability of the more modern sectors of the economy to provide adequate employment for the many Ugandans entering the workforce every year”
The research paper, titled Rural-Urban Transformation in Uganda, was written by Paul Mukwaya, Yazidhi Bamutaze, Samuel Mugarura and Todd Benson. The paper was presented at an international conference that was held in Accra, Ghana, from 10-11 May 2011. It was jointly organised by IFPRI and University of Ghana. The event focused on the opportunities and obstacles in transforming African economies and the policy implications. There was also comparison of lessons learned from other developing regions—Asia and Latin America.
“Industrialisation and urbanisation tend to go hand-in-hand with economic development,” In his remarks, Dr Shenggen Fan, director general of IFPRI, noted in his remarks, “Without appropriate policies, sufficient public investments in infrastructure, and adequate provision of critical social services, these changes will not necessarily accelerate economic growth or improve human welfare. However, if these concerns are taken into account, the transformation of national economies will no doubt have a huge and positive impact on Africa’s future.”
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