Recognizing the need for increased external support, Uganda negotiated apolicy framework paper with the IMF and the World Bank in 1987. It subsequently beganimplementing economic policies designed to restore price stability and sustainable balanceof payments, improve capacity utilization, rehabilitate infrastructure, restore producerincentives through proper price policies, and improve resource mobilization and allocationin the public sector. By 1990, these policies were beginning to produce results. The Ugandan Government also has worked with donor countries toreschedule or cancel substantial portions of the country's external debts. Exports of hides, skins, vegetables, fruits, cutflowers, and fish are growing, and cotton, tea, and tobacco continue to be mainstays.
Most industry is related to agriculture.
The industrial sector is being rehabilitatedto resume production of building and construction materials, such as cement, reinforcingrods, corrugated roofing sheets, and paint. Domestically produced consumer goods includeplastics, soap, cork, beer, and soft drinks. Most radiate from Kampala. A railroad originating at Mombasa on the Indian Ocean connects withTororo, where it branches westward to Jinja, Kampala, and Kasese and northward to Mbale,Soroti, Lira, Gulu, and Kapwach. In 1973, persistent security problems and increasingly difficult operatingcircumstances forced withdrawal of U.S. Peace Corps volunteers and the termination ofbilateral U.S. economic assistance.