This Poverty Status Report 2021 is the third in a series under the National Development Planning cycle, guided by the theme: ‘Jobs, informality and poverty in Uganda: Insights on performance before and during COVID-19’. The theme is consonant with Uganda’s medium-term aspirations of increasing average household incomes and improving the quality of life of Ugandans as expounded in Vision 2040. It is also cognizant of the challenges imposed by informality and the coronavirus pandemic (COVID-19).

The Report explores Uganda’s structural transformation agenda, which is hinged on transforming the livelihoods of households from low to high-productivity activities and sectors, while minimizing vulnerabilities to poverty at the same time. This is in tandem with various international development frameworks such as the global 2030 Agenda for Sustainable Development (2030 Agenda) and its 17 Sustainable Development Goals, to which Uganda is a signatory.

Over the last decade, Government of Uganda has sustained investment in the economy’s productive base. These infrastructure investments have mainly been in energy; roads; and the information, communication, and technology sectors targeted to support agro-industrialization. These investments have had a positive impact on the economy, leading to a rise in average incomes. Per capita gross domestic product rose from US$ 824 in 2016/17 to US$ 964 in 2019/20. However, these gains in economic growth are threatened by high fertility rates that translate into pressures on the environment and household savings for investment. This situation is compounded by the increasing climatic changes affecting agricultural production, from where 62 per cent of the population derives their livelihood.