February: Business and Economic Well being

Jubilee Project

Uganda Fact File on Business and Economic Well Being

GDP per capita: $509 (World Development Indicators 2010)

GDP (gross domestic product) per capita is a measure of the total output of a country that takes the monetary value of all the finished goods and services produced within a country’s border and divides it by the number of people in the country. The per capita GDP is especially useful when comparing one country to another because it shows the relative performance of the countries. A rise in per capita GDP signals growth in the economy and tends to translate as an increase in productivity.

Labour force by occupation: (CIA World Fact Book)

  • Agriculture: 82%
  • Industry: 5%
  • Services: 13%

Percent of Uganda’s population live below the poverty line:
24.5% (2009/10 Uganda National Household Survey)

51.5% (United Nations Human Development Report for 2010 – below the income poverty line of PPP $1.25 a day)

  • Budget: (CIA World Fact Book – 2010 estimate)
  • Revenues: $ 2.544 billion
  • Expenditures: $ 3,137 billion

Budget deficit (-3.5% of GDP) – the negative number means that we are spending more than we are earning as a nation) ranked 110 out of 208 countries

External Debt: $5.5 billion (Uganda Debt Network)

Inflation rate: 27% (BOU December 2011)

Electricity: ( CIA World Fact Book – 2008 estimate)

  • Electricity production: 2.176 billion kWh (2008 estimate) ranked 133 out of 215 countries
  • Electricity consumption: 1,958 billion kWh (2008 estimate) ranked 137 out of 215 countries

Exports: (2010 estimates) $ 2,164 billion ranked 110 out of 222 compare with Germany ranked No.3 at $1,303,000 billion

Time required to start a business: (18 steps in 25 days compare with Mauritius 6 days and Rwanda 2 steps in 3 days – 2010 data from World Development Indicators Database)

LEGATUM PROSPERITY INDEX 2011

Entrepreneurship & Opportunity – Ranked 94th
Ugandan entrepreneurship is limited by very high start-up costs, but Ugandans are positive about business prospects

There is limited innovative activity in Uganda; Ugandans earn just over 3 million USD per year from royalty receipts and ICT goods make up less than 5% of all manufactured exports, placing the country 60th and 32nd, respectively on these variables. R&D expenditure amounts to a low 0.4% of GDP, however, places the country 83rd on this variable. Uganda’s infrastructure for entrepreneurs is also extremely poor: there are only 29 mobile phones for every 100 people, internet bandwidth capacity is very low and there are very few secure internet servers, placing Uganda in the bottom 20 countries in the Index for all three variables. Business start-up costs are the sixth highest in the world at 95% of GNI per capita, signifying a real barrier to opening a new business. However, subjective assessments of entrepreneurial opportunities were positive: over three-quarters* of people believed the area they live in to be a good place to start a business, placing Uganda 31st for this variable. Over nine in 10* people also thought that those who work hard will get ahead. Despite these high hopes, at present, uneven development creates pervasive inequality across different socio-economic groups, placing Uganda among the bottom 20 countries for this variable. http://www.prosperity.com/country.aspx?id=UG

FEBRUARY 2012 THEME: Business and Economic Well Being

Be sure you know the condition of your flocks, give careful attention to your herds; for riches do not endure forever, and a crown is not secure for all generations. When the hay is removed and new growth appears and the grass from the hills is gathered in, the lambs will provide you with clothing, and the goats with the price of a field. You will have plenty of goats’ milk to feed your family and to nourish your female servants.
Proverbs 27:23-27

The time of Jubilee signaled a time of resetting the economic clock. Those who had lost their land (which was the main means of production economic survival and prosperity at the time) regained it. Those who had acquired land would have needed to reconsider their options as the means of their production changed. It ushered in possibilities and opportunities that may not have existed in a lifetime and for some it was a once in a lifetime chance to correct errors of the past. It was also a time when debts were forgiven and written off.

It is from the Jubilee concept that we got the 49 year land lease law. This month we reflect and take stock of our finances and economy.

Commemorate:

  • Reflect on your financial journey over the past few years.
  • What have been the positive trends?
  • How about the negative ones?
  • What was your financial situation 5, 10, 20, 30, 40 or 50 years ago?
  • What are your debts and other financial obligations?

Celebrate:
Make a list of the things you currently own. How does this compare with 5, 10, 20, 30, 40 or 50 years ago?

Contemplate:

  • Looking forward, what are the areas you would like to see improved in your finances?
  • What positive steps can you take today to see this improvement?

Jubilee Point of action for the month:

  • Consider a special financial gift to someone who you know will not pay you back
  • The debts I/we are writing off are …
  • Families: if you have not already done so, develop a plan to start training children in management of finances

For Businesses and Financial Institutions:
Consider giving back to the community by creating “Jubilee packages”

For Spiritual and community leaders:
Consider doing a teaching or seminar on finances and debt, or starting your own business

Jubilee Prayer for the month:
Pray that God will bless your community and Uganda with abundant prosperity in the next 50 years and that we will be faithful stewards of what has been entrusted to us.

Jubilee Pledge for the month:
I pledge to work hard, live frugal, get out of debt and invest for a better future.

Remember!
2012 is a leap year and so there is 29th February. Congratulations to those who celebrate their birthdays once every 4 years!

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