The Republic of Uganda located in east Africa is bordered by Kenya, Sudan, Democratic Republic of the Congo (DRC), Rwanda and Tanzania. Covering an area of about 200,000 sq km, Uganda has a population of around 33 million. President Museveni who seized power in 1986 is credited for having emerged Uganda from economic decline, conflicts and repressive governments to macroeconomic and political stability, high growth, considerable progress in liberalising the economy and a relative political liberalisation. Southern Uganda, benefiting from peace, more productive agriculture and better infrastructure, is more developed than the rest of the country. The North and West have suffered badly from conflicts, remoteness and longstanding inequalities. While poverty levels have continued to decline over the last years (from 38%  in 2002/2003 to 31% in 2005/2006)  Uganda, with a GNI per capita of $500, still ranks among the poorest countries in the world, with a continued high population growth posing  a challenge to the government strategy to reduce poverty.  The country has substantial natural resources, including fertile soils, regular rainfall, and sizeable mineral deposits of copper and cobalt.  The importance of agriculture in the economy (contributing to 23% to GDP and employing over 80% of the work force) has declined in relation to industry and services (services contributing 52% to GDP). Coffee remains the major export crop, but its share of export revenues has been regularly declining. The discovery of significant oil reserves will be a major opportunity and challenge for the country over the next years.  Lack of transparency but also increasing government restrictions on civil liberties and the tightening control of public space have become issues of major concerns.

Key issues in EU-Uganda relations

Uganda is an important partner for the EU in the region. It is an anchor of stability and has been contributing to peace efforts in the region and in particular in Somalia. The country which is pursuing an export led growth strategy enjoys good trade relations with the EU.

The EU has long been a development partner of Uganda, having helped with programmes to improve road networks, increase agriculture productivity, and promote democracy and good governance and by working for peace and stability in the country and surrounding region. The EU’s strategy, which provides 439 M€ for the period 2008-2013, continues to focuses on transport infrastructure and road sector reforms, rural development and agricultural recovery and budget support.

Improving transport in Uganda will focus on creating and upgrading access routes with neighbouring countries and better maintenance of the existing national road network. This is to be achieved by strengthening government institutions. Improved transport will help with the goal of poverty reduction through lower transport costs, increased employment opportunities and greater ease of transporting agricultural goods from rural areas to urban ones.

Rural development focuses mainly on improving productivity in general and in northern Uganda in particular. This includes specific activities in the forestry sector and recovery programmes for rural livelihoods.

Assistance is given to address the humanitarian situation, mainly in Northern Uganda and in Karamoja, the most affected regions. The country is at the epicentre of several humanitarian crises, and has been the destination of refugees fleeing them.