Uganda’s Productivity Problem: Why Hard Work Is Not Enough

What the report says

Uganda’s low productivity was the focus of a recent Nile Post report drawing on a discussion on NBS Morning Breeze with economist and Rukiga County MP Patrick Katabaazi and John Walugembe, executive director of the Federation of Small and Medium Enterprises Uganda. The central point was that many Ugandans work long hours, but too much of that effort is spent in low-value activities that do not translate into higher incomes.

The report said the challenge is especially visible in agriculture and the informal economy, where small-scale farmers, traders, boda boda riders and other workers often depend on basic tools, limited technology and costly finance. It also noted that slow government processes, including licensing delays and regulatory burdens, can reduce business output by consuming time that could otherwise go into production or expansion. Walugembe argued that weak workplace systems, poor management and absenteeism can also limit results inside private businesses.

The article said the broader issue is not simply hard work, but the structure of the economy. Uganda still relies heavily on low-productivity farming and informal services, while manufacturing and agro-processing remain underdeveloped. The report framed import substitution and value addition as part of the answer, but stressed that local businesses need affordable credit, skills, technology and better markets to compete.

Overall, the piece argued that raising incomes will require coordinated action by government and business alike, so that labour produces more value rather than just more hours of work.