Broad economic diversification into non-agricultural sectors, at least on a large scale, will take time and require considerable private sector investment. Thus, agriculture is the primary engine available to the population for achieving significant economic growth in the medium term. Uganda has a rich land resource base. Contributing to poor land utilization are the low use of modern technology and agricultural inputs, as well as the lack of improved varieties for increased crop production poor roads and other physical infrastructure, and a variety of legal and institutional constraints to the purchase, sale and use of land. Insecurity in the North and West also makes it difficult for farmers to cultivate large areas on a regular basis.
Land tenure is another issue constraining commercial opportunities.
Low productivity makes the country a higher cost producer of basic food crops than its neighbor, Kenya. Although land-locked, Uganda can be a food exporting country. The economic growth problem for Uganda goes beyond agriculture. Low productivity also affects manufacturing, services and tourism. The lack of a broad-based, skilled workforce and a weak enabling environment limit the private sector from being competitive both regionally and in broader global markets.