One Million Ugandans Move Out of Poverty between 2006 And 2010

By David Mugabe

KAMPALA (NNN-NEW VISION) -- About one million Ugandans, or around 6.6 per cent of the population, have moved out of the absolute poverty bracket of living on just 1.25 USD a day between 2006 and 2010 as a result of the diversified economic activities, a new report indicates.

The Poverty Status Report, produced by the Ministry of Finance, indicates that Ugandans living below the poverty line fell to 24.5 per cent of the population, or 7.5 million people, in 2009/2010 from 31.1 per cent (8.5 million) in 2005/06.

Rather than constantly struggling to meet their most basic needs, many more Ugandans are now striving for new opportunities to improve their lives, reads the report which launched by Finance Minister Maria Kiwanuka here Wednesday.

Higher pay, ability to cope with risks because of increased asset base and better access to savings instruments are some of the reasons for the decline in absolute poverty.

Chairing the panel discussion during the report's launch, Keith Muhakanizi, the Deputy Secretary to the Treasury, acknowledged the decline in the quality of some of the key indicators driving the poverty growth.

Muhakanizi, however, stressed that the country was better off having these programmes and addressing the quality concerns than not having them at all. He sighted universal primary education (UPE) in which the completion rate to primary seven is at 57 per cent, meaning kids are jumping out of school.

Muhakanizi said no doubt there are challenges with quality of education, but we are better off with the schools enrollment.

Agriculture remains the mainstay of the economy, employing about 75 per cent, but the majority of the people in the sector are poor. Also key in the report is the fact that the number of middle class Ugandans has risen from 7.8 million (28.7 per cent) to 10 million (32.6 per cent.)

Kiwanuka said electricity accounted for 73 per cent of maize milling costs and rural electrification was crucial for agro-processing and value-addition. -- NNN-NEW VISION