Kampala — The agriculture sector's contribution to real Growth Domestic Product-GDP fell by 1.7 percent to 3.0 percent in 2012 up from 4.7 the previous year and 5.0 percent in 2010, Statistics from National Institute of Statistics indicate.
With the country's real GDP growing at 8.0 percent in real terms in 2012, agriculture comes behind the services sector that contributed 12.3 percent with the industry sector contributing contributing 7.4 percent.
Accordingly, food crops dropped from 5.0 percent in 2011 to 3.2 percent last year,export crops saw a fall to -9.1 percent in 2012 up from 3.0 percent 2011,while livestock increased to 5.3 percent 2012 up from 2.8 percent in 2011. Whilst,forestry increased from 2.7 percent in 2011 to 4.3 percent in 2012 while fisheries was stable at 3.0 percent dropped contributed 5.3 percent, forestry 4.3 in 2011 and 2012 respectively.
Experts attribute the fall to prolonged drought that affected most harvests in 2010 and early 2011 that saw a sharp fall in food production contribution to GDP from 9.3 percent in 2009 to 5.0 in 2011 and in second season of the year that pushed the contribution down to 3.2 percent in 2012.
"We could not get enough supply from farmers last year because their harvests were affected," Veneste Mukabudigiri, a vendor of fresh foods in Kimironko market told Business Week
Agriculture has been the country's main contributor to real GDP and pumping more than 45 percent of the country's export receipts.
But International Monetary fund projects a stronger growth in agriculture(food crops) boosted by the first harvest of the year which were good and an acceleration in foreign financed investments projects while construction and services are likely to slow down responding to tighter economic policies.
Nevertheless, with an increase 12.3 percent in the service sector contribution to real GDP, there is optimism that the economy is headed to a positive outlook that will see a shift from agro-based to service economy.
"I think this is a good shift for the economy... . Provided we have the sectors like services and industry at the fore front of development then we are sure of sustainable growth which translates into increased revenues to finance the national budget and increased employment," Davis Mukiza, a private Consultant said
Indeed, the increased investments in transport and communication, hotels and restaurant, whole sale and retails and health has resulted an a positive performance to GDP of 19.5 percent ,7.8 percent ,12.5 percent and 10.6 percent respectively.
Source: allafrica
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