School of Economics (SE) Collections

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    Access of financial credit services to small scale commercial farmers in Uganda. A case of Bubaare Sub County, Mbarara District
    (Makerere University, 2020-02) Atukunda, Racheal
    This study focused on establishing access of Financial Credit Services to Small Scale Commercial Farmers in Bubaare Sub County, Mbarara District, Uganda. The study was guided by the following objectives namely; assessing the status of credit services available to farmers, examining the reasons for farmers’ participation and non-participation in credit programs, and identifying the factors leading to credit rationing of farmers by financial institutions in Bubaare Sub County, Mbarara District, Western Uganda. The study was guided by a cross sectional research design and the respondents included; heads of small-scale farming households, officials from credit institutions and officials in charge of agricultural finance from Mbarara District Local Government. Among the observations made on the status of credit services available to farmers; the Ministry of Agriculture plays a dominant role in ensuring that farmers get credit services from financial institutions, there is a big number of lending schemes and institutions which provide credit services to farmers at subsidized interest rates, agricultural lending is associated with a number risks making it unfavourable for financial institutions, and Financial credit services in rural areas are dominated by small institutions mainly SACCOs and self-help groups which offer only small amount of money to farmers. In relation to farmers’ participation in credit programs, the study found out that; Farmers participate because they want to access loans from the credit programs to invest in agriculture, expand their existing income generating activities, save money as well as learning and sharing information on farming practices. However, their nonparticipation is due to; fear of loan defaulting, unsuitable loan conditions and busy schedules, leaving them with no time to participate. In relation to factors leading to credit rationing of farmers by financial institutions by financial institutions, the study identified annual income of the family in the previous year, Value of household assets including plants and animals as well as physical assets, Ration of formal outstanding debt over income, and Distance from the location of the financial institution as the factors leading to factors credit rationing of farmers. The study made the following recommendations; there is a need to implement adult financial literacy programs, strengthening farmer cooperative organizations, which could provide a collective capital and social collateral for small farmers, Formal MFIs should be encouraged to substitute physical collateral for social collateral through group liability strategies, encouraging farming households to take on alternative livelihood activities, as well as finding market smart strategists to deal with challenges facing small farmers in accessing credit.
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    The achievement of Foundation Hans Lindner for St. Joseph’s Aid Society in promoting education: A case study of Kiboga District-Uganda
    ( 2014-10-06) Lubega, Joseph Balikuddembe
    The study set out to establish Foundation Hans Lindner for St. Joseph’s Aid Society’s achievement in Education in Kiboga District-Uganda. It was a case study, based on the qualitative and quantitative research approach. The sample for the study entailed 130 participants, that is, 9 Directors, 80 Direct Beneficiaries (students), 9 District Officials, 11 Community Leaders, 8 Elders/Opinion Leaders, 12 Religious Leaders, plus the Education Secretary, Kiyinda-Mityana Diocese. These generated data for the study through five instruments, these included: interview schedules for Directors and the Educational Secretary, Kiyinda – Mityana Diocese; questionnaires for Direct beneficiaries, District officials, Community leaders, Religious leaders; focused group discussion for direct beneficiaries. The collected data was qualitatively and quantitatively presented, and analysed in frequencies and percentages, then meaningfully placed in categories for interpretation. The study was guided by two research questions: • What is the achievement of Foundation Hans Lindner for St. Joseph’s Aid Society in the promotion of Education in Uganda? • What challenges does Foundation Hans Lindner for St. Joseph Aid Society face in promoting Education in Uganda? The data collected revealed that the foundation has achieved in its role of promoting education in Uganda, especially in Kiboga district. This is because, many of those it has sponsored have now graduated in different disciplines, and this has led to reduction in the literacy rate in the country and an increase in the number of qualified personnel, thus , an increase in the human resource, a good number of its beneficiaries are now employed, that is both by government and private institutions, orphans and children from poor families who would not have been able to taste a dose of education have been supported, government has been assisted in its role of promoting Universal Education. However, the Foundation faces some challenges in trying to promote education in Uganda. These are; shortage of funds, which are greatly needed to facilitate the Foundation’s recurrent expenditure, low motivation of teachers, government obligations (taxes), poor management and administration of Foundation activities. It was concluded that achievements summarise all the benefits the Foundation has met. However, that challenges presented have always hindered the Foundation’s proper delivery of its educational services to the underprivileged in Kiboga District and the country at large. Hence, more productive partnerships between government and NGOs are clearly called for, such that, promoting education of the underprivileged greatly contributes to the future well being of the nationals in the economy, as well as it development. It was therefore recommended that, government should exempt NGO’S from taxes especially during importation of educational materials, set up an NGO Advisory Board on educational policies that would give NGOs a much greater role in education decision making, Have a more consultative approach at the community level to tackle the implementation problems, strictly monitor and scrutinize the performance of various NGOs involved in promoting education. Given all that efforts, expectations are high that, the Foundation will be able to promote education in the country with ease.
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    Adequacy of tax revenue and the national budget deficit in Uganda before and after the tax reforms (1980-2008)
    (Makerere University, 2011-03) Muwanga, Lawrence
    Like any other countries in Sub-Saharan Africa, Uganda’s tax performance is still poor. Inadequacy of tax revenue is evidenced by the existence of national budget deficit. Every year the realised total tax revenue falls short of the budgeted total tax revenue. The budget deficit annually increases by a bigger percentage than the increment in realised total tax revenue. In spite of the tax reforms launched by the government, budget deficit persistently increases. The study aimed at finding out the cause of the inadequate tax revenue in Uganda that is not enough to service government expenditure so as to reduce the budget deficit before and after the tax reforms. To achieve the main objective, buoyancy, elasticity and tax effort indexes of the tax system were estimated. Ordinary least square (OLS) method was used on time series data to estimate those economic magnitudes. Data were got from Ministry of Finance, Planning and Economic Development; Bank of Uganda; Uganda Bureau of Statistics (UBOS) and Uganda Revenue Authority (URA). Economic models for estimating buoyancy and elasticity were established. Elasticity with respect to the national income of individual taxes was decomposed into tax-to-base elasticity and base-tonational income elasticity. Models to estimate that decomposed elasticity were specified as shown in chapter 5, equations 5 & 6. It was found out that total tax revenue has negative relationship with the budget deficit (Table 6.8). After the tax reforms, buoyancy increased with the exception of that of import duties (Table 6.13). Total tax revenue was inelastic before the tax reforms (1980-1990) and for the whole period (1980-2008).But after the tax reforms (1991-2008), total tax revenue was elastic with respect to GDP (Tables 6.14). In the same period income tax and VAT were elastic with respect to GDP (Tables 6.14) but the base of VAT was still inadequate as evidenced by tax-to-base elasticity and baseto- GDP inelasticity (Tables 6.15 & 6.16). Import tax was inelastic to its base whereas the base was elastic with respect to national income (Tables 6.15&6.16). Tax effort was generally less than one before the tax reforms and the combined periods (Tables 6.12 & 6.23). Tax reforms brought about positive changes in tax effort (Table 6.17). The study concluded that the country has inelastic tax system and that total revenue cannot increase automatically as national income grows. The tax effort was less than one for the whole period (1980-2008) and therefore a country has a high tax potential and can increase tax revenue generation by redesigning the tax system. The base for VAT needs broadening and measures to tap import tax should be increased by fighting corruption, tax evasion and smuggling. Positive changes that were brought about by tax reforms should be cherished and more should be done to increase tax revenue generation such as increasing the base of VAT and improving the collection methods of import duties. Tax reforms brought about positive changes in buoyancy with the exception of import duties but still more discretionary changes are needed to achieve tax effort which is one or more. Finally the study concluded that tax revenue generation is insufficient and thus national budget deficit persistently increases every year. It was recommended that the government should make ventures to increase tax revenue such that the realised tax revenue is nearer to the budgeted tax revenue but at the same time it should check on its spending culture.
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    Adoption and impact of conservation agriculture among farming households in Kyankwanzi district, Uganda
    (Makerere University, 2021-04) Lumu, Emma
    The agricultural sector in Uganda is challenged by a number of constraints including low technological adoption, limited financing, reduction in agricultural land, poor access to extension services and poor farming practices among others (World Bank report 2018). As part of the campaign to take care of some of the challenges, conservation agriculture package which involves minimal soil disturbance, retention of crop residues as mulch on the soil surface, and the use of crop rotations was proposed as a sustainable solution to agricultural problems in smallholder farming systems and has been promoted in parts of Uganda. In Kyankwanzi District, it was implemented by Rural Enterprise Development Services (REDS) from 2011 to 2015. This study determined the extent to which conservation agriculture has addressed the challenges faced by farmers in Kyankwanzi District. Specifically, the study determined: i) the level of adoption of conservation agriculture among smallholder farmers, ii) the factors that influence the adoption of conservation agriculture, and iii) the impact of conservation farming adoption on the income of farmers in Kyankwanzi District. The study was conducted in three sub-counties namely; Nkandwa, Wattuba and Kiryanongo in Kyankwanzi District. A sample of Ninety-one (91) households was selected from a population of 120 smallholder farmers using the purposive sampling method with the Yamane’s formulae (1967). Binomial probit regression model was used to investigate the driving factors of conservation agriculture whereas the propensity score matching (nearest neighbor) was used to assess the impact of conservation agriculture on income using SPSS and STATA packages. The level of adoption of conservation agriculture based on application of at least one conservation principle was 64.8% while non-adopters were 35.2%. Among the adopters, 58% applied only one of the CA principles, 5% applied only two principles and 37% applied all the three principles of conservation agriculture. However, only 17% of the total land holding for the households investigated was under CA. The results from the probit regression analysis indicated that: i). adoption of conservation agriculture among the households surveyed depended on access to agro-inputs (P ˂ 0.01), access to credit (P ˂ 0.05) and access to agricultural extension services (P ˂ 0.05); ii). information access through training significantly influenced adoption of CA (χ2 = 9.755, P = 0.002, α = 0.05); and iii). That the major source of extension service on CA significantly influenced adoption of CA (χ2 = 14.223, P=0.003, α= 0.05) ,with non-governmental organization (NGO) leading as a source of extension services (71.2%) followed by government (13%), farmer group (3%) and by other sources (1%). It is evident that exposure to information played a key role in enabling the uptake of CA. The propensity score matching (PSM) analysis, revealed that CA adopters on average earned eighty thousand shillings (Ug shs 80,000/=) more (P<0.001) and spent 3 units less of agro-inputs (P<0.05) than non-adopters per acre per season. These results suggest that conservation agriculture practices are reducing the cost of inputs per acre and agro-input cost per kilogram of produce harvested among smallholder farmers in Kyankwanzi District. This is particularly important for smallholder rural farmers where inputs such as improved seeds, pesticides and fertilizers are both costly and unreadily available. Fostering adoption of conservation agriculture has a good chance of improving the income status of households (poverty reduction) in the farming community. The study recommended increasing farmers' awareness of CA and its benefits via various means such as training/workshops, extended extension services and other possible channels to increase its adoption; and increasing farmer’s access to credit and agro-inputs. It is desirable that farmers adopt all the principles in order to attain the best returns from conservation agriculture. Farmer training as a means to attaining increased CA adoption should be strengthened and the contribution of NGOs in this regard is indispensable and should be encouraged. Conservation agriculture potentially increases the income and welfare of smallholder farmers, especially via reduction in unit cost of production and efforts to increase its adoption should be supported by adequate policy measures and it should be extended to other parts of the country where it has not yet been introduced in a bid to reduce poverty in the sector.
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    Adoption to improved cassava varieties, production and post-harvest management in Uganda
    (Makerere University, 2024-01) Ssajjabbi, Vincent
    This dissertation addresses three key fundamental objectives that are aimed at providing some insights about the performance of the cassava sub-sector. First, it examines the role of agricultural extension services in the adoption of improved cassava varieties in Uganda (chapter 3). Second, an assessment of the effect of improved cassava varieties on cassava production in Uganda (chapter 4). Third, it examines the causes of post-harvest losses in cassava sub sector, the stage at which post-harvest losses occur at household level and the strategies used by farmers to reduce the post-harvest losses in the same enterprise (chapter 5). In examining the role of agricultural extension to the adoption of improved cassava varieties in Uganda, the study used farmers who reported accessibility to agricultural extension from extension workers about such improved varieties and a probit with selection equation were employed on data collected from eight (8) districts in Northern Uganda. In chapter four, the study employs interrupted time series analysis to provide evidence of the impact of cassava varieties on cassava production in Uganda. To examine the causes of post-harvest losses in cassava sub sector, probit estimations were used to determine the factors leading to post-harvest losses at the household level. The main results from the three chapters are: (1) there is a higher probability of adopting improved cassava varieties when farmers access agricultural extension services; and also document farmers’ distrust to improved cassava varieties as a crop enterprise that can guarantee their households with food security; (2) improved cassava varieties contribute to increased cassava production in the country and (3) post-harvest losses occur due to absence of storage facilities, pest invasion and lack of market information. The study provides evidence that post-harvest losses occur at different stages even within a single household and too, households use differing strategies to reduce on post-harvest losses. From the policy perspective, the results suggest that the design and content of improved agricultural technologies requires supporting interventions such as agricultural extension services and interventions aiming at promoting food security and poverty eradication especially within rural households need to supplement the efforts with enhanced mechanisms for post-harvest handling.
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    Adoption to improved cassava varieties, production and post-harvest management in Uganda
    (Makerere University, 2024-01) Ssajjabbi, Vincent
    This dissertation addresses three key fundamental objectives that are aimed at providing some insights about the performance of the cassava sub-sector. First, it examines the role of agricultural extension services in the adoption of improved cassava varieties in Uganda (chapter 3). Second, an assessment of the effect of improved cassava varieties on cassava production in Uganda (chapter 4). Third, it examines the causes of post-harvest losses in cassava sub sector, the stage at which post-harvest losses occur at household level and the strategies used by farmers to reduce the post-harvest losses in the same enterprise (chapter 5). In examining the role of agricultural extension to the adoption of improved cassava varieties in Uganda, the study used farmers who reported accessibility to agricultural extension from extension workers about such improved varieties and a probit with selection equation were employed on data collected from eight (8) districts in Northern Uganda. In chapter four, the study employs interrupted time series analysis to provide evidence of the impact of cassava varieties on cassava production in Uganda. To examine the causes of post-harvest losses in cassava sub sector, probit estimations were used to determine the factors leading to post-harvest losses at the household level. The main results from the three chapters are: (1) there is a higher probability of adopting improved cassava varieties when farmers access agricultural extension services; and also document farmers’ distrust to improved cassava varieties as a crop enterprise that can guarantee their households with food security; (2) improved cassava varieties contribute to increased cassava production in the country and (3) post-harvest losses occur due to absence of storage facilities, pest invasion and lack of market information. The study provides evidence that post-harvest losses occur at different stages even within a single household and too, households use differing strategies to reduce on post-harvest losses. From the policy perspective, the results suggest that the design and content of improved agricultural technologies requires supporting interventions such as agricultural extension services and interventions aiming at promoting food security and poverty eradication especially within rural households need to supplement the efforts with enhanced mechanisms for post-harvest handling.
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    Agricultural exports and economic growth in Uganda
    (Makerere University, 2022-05-10) Mawejje, Stephen
    Agriculture is the backbone of the Uganda’s economy as it contributes 24 percent of the country’s GDP, employs over 72 percent of the population and accounts for 31 percent of Uganda’s exports. As such, the agricultural sector is viewed with the greatest potential to generate significant economic growth. This study seeks to examine the influence of agricultural exports on economic growth in Uganda using quarterly time series data sourced from Bank of Uganda and the World Development Indicators of the World Bank for a period between 1994 quarter one and 2020 quarter four. The study used the Augmented Dickey Fuller and Phillips Perron tests to check for the stationarity of variables as well as employing the ARDL bounds approach to cointegration to ascertain the presence of level, short run and long run relationship among the variables in the study. The ADF and the Phillips Perron (PP) unit tests indicated that variables comprised of a mixture of order zero and order one variables which suggests the use of ARDL bounds testing approach to cointegration. The bounds test results confirmed no evidence of a level relation among the variables while the ARDL model indicated the existence of short and long run relationship among the variables in the model. The results revealed that agricultural exports greatly influence economic growth especially in the short run. Overall, the goodness of fit and overall significance of the model showed that the model is highly significant which indicates that variations in economic growth are explained by the regressors considered. The study recommends policies that are geared towards promoting agricultural production and exports with high value addition, promoting productive labor force especially in the agricultural sector as well as providing conducive investment environment particularly for agricultural investors so as to increase agricultural production which in the end, enhances economic growth.
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    Alternative banking channels; A case study of selected banks in Uganda
    (Makerere University, 2019-01-07) Nakasi, Alice Elizabeth
    The study evaluated the Alternative banking Channels with specific reference to Barclays Bank, Ecobank and DFCU Banks in Uganda. The study specifically examined the Alternative Banking Channels and their role at Barclays, Ecobank and DFCU Bank, examined the Marketing and Awareness practice in the banking of financial services, assessed their uptake in relation to the branch banking channel, examine challenges faced therein and recommend ways to enhance the role played by Alternative channels in the banking of financial services. The study used cross sectional survey design with quantitative approaches. The study population involved top management, middle management and officers. Data was analyzed to obtain means and standards deviations, frequencies and percentages. In the study it was revealed that the banks have different Alternative Banking Channels including ATMS, Agency Banking, Point of Sale Machines, Internet Banking and Mobile Banking. Whereas the existent channels were found to be vital & appropriate to the respective banks, it was noted that the marketing aspect was lacking in the area of promotion. The Place, Product and price aspects were found to be okay with the Promotion aspect lacking in the use of various promotion channels like Short Message Service, Print media, TV and radio advertisement and online channels. The banks were found to rely on promotion through bank officials. Whereas the study established that Alternative Channels were popular and could surpass the use of the branch channel in the future, the branch channel was found to be more popular at the time of the study. This perhaps due to the fact that the channels selectively provide certain products while not offering others like credit products. ATM Machines and mobile banking were found to be key channels to the banks perhaps due to the 24-hour availability. The banks were found to face various challenges in the use of Alternative Banking Channels like unreliable platforms, security risk, and technology illiteracy, product mix limitations and cost. It is recommended that banks need to adapt to partnerships with finitech companies & telecoms as well as invest in system security, consumer technology education, product innovation and agency distribution
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    The analysis of effectiveness of bank credit as a funding alternative for SMEs in Kampala
    (Makerere University, 2018-01-04) Bindeeba, Elizabeth
    This research project was carried out to analyze the effectiveness of bank credit as a funding alternative for SMEs in Kampala district. The study set out to establish the current status of access to bank credit by SMEs in Kampala district, evaluate the factors affecting access to bank credit among SMEs in Kampala district and to design strategic frameworks that can ease bank credit access by SMEs. The study applied both qualitative and quantitative techniques to obtain and analyze the data that was collected for the study. A total of 384 unique SMEs were selected using a combination of quota sampling and random route based sampling. The findings of the study have been summarized and presented as percentages, descriptive statistics and absolute figures in a bid to explain the findings and answer the research questions that had been put forward during the study. The main findings of the study were that less than half of the businesses needed credit and of those that sought bank credit, less than half were able to obtain it citing access and eligibility issues. The study also found out that 64% of the SMEs that obtained bank credit experienced growth in turnover showing that bank credit was important for SMEs growth. The study further established that the entrepreneurs did not see collateral as a major hindrance to accessing credit and neither did they consider their businesses unfit to access credit by virtue of business volatility nor formal status. However, the main hindrances to accessing credit resulted from a general perception by entrepreneurs that using their own savings was always better than accessing credit hence the observed moderate levels of aspiration to borrow. The study concludes that bank credit is needed for the growth of the SMEs and further recommends that for the credit to be effective, there’s need for financial literacy regarding financial discipline when it comes to maintaining pre-determined purpose of borrowed funds and the opportunity cost of investment as SMEs wait to accumulate own funds as opposed to obtaining bank credit.
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    Analysis of exchange rate volatility and covid-19 infection cases in Uganda
    (Makerere University, 2022-05) Nakabuye, Madrine
    The study examined the exchange rate volatility in Uganda due to critical roles the exchange rate plays in financial markets and international trade. In 1993, Uganda moved away from fixed exchange rate regimes towards more flexible ones to expedite the efficient absorption of external shocks to the domestic economy. However, the current regime is flawed with exchange rate volatility due to the imbalances in demand and supply for foreign currency caused by economic shocks and crises like COVID-19. On 18th March 2020, Uganda started implementing numerous policy measures to restrain the spread of COVID-19. However, because of the profound uncertainty due to the threat of the COVID‐19 pandemic, this study seeks to re-examine the impact of COVID‐19 on exchange rate volatility in Uganda using secondary data that includes the first and second wave periods of COVID-19 infections in Uganda until 31st December 2021 when the country fully opened its economy. Using the Generalized Autoregressive Conditional Heteroscedasticity, GARCH Model (GARCH (1,1), GARCH (1,2) TGARCH, and E GARCH, with GARCH (1, 1) model as the main model, the study finds a negative effect of increasing number of COVID-19 cases over the estimation period on exchange rate volatility in Uganda. The results can be explained by the prudent macroeconomic policies adopted by the Bank of Uganda for economic stability. Therefore, the country should still implement the same policy measures to reduce economic uncertainty and increase investor confidence and economic stability in times of uncertainty like the COVID-19 pandemic.
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    An analysis of financial inclusion in Uganda
    (Makerere University, 2022-12) Malwa, Abbey Wadembere
    Although Uganda has made remarkable progress in improving access to financial services, there remains a lot to do to attain meaningful financial inclusion associated with reduced gender differences. This study examines the determinants of financial inclusion in Uganda and further investigates the gender differences in financial inclusion in Uganda using logistic regression models. Based on the Uganda National Household Survey 2019/20 data, the results indicate that majority of the unbanked population resides in rural areas, and that female were more likely to be financially excluded, especially concerning account ownership. Additionally, individuals living in urban areas within the working age group, employed, have at least some primary education, own a mobile phone, are married, and earn an income were more likely to be financially included. This study shows that gender significantly impacts financial inclusion in Uganda and recognises significant gender differences associated with financial inclusion. The study, therefore, recommends mainstreaming gender policy in the provision of financial services to ensure that the underserved population, especially women, are not left behind. The study further recommends investment in financial literacy for the targeted population, extension of financial services through income enhancement programmes, leveraging mobile technology as an instrument for financial inclusion through digitization as well as promotion of agent banking.
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    Analysis of savings function in Uganda
    (Makerere University, 2021-04) Kiggundu, Mariam
    This study analysed the determinants of saving rate in Uganda over the period 1980 to 2020 using annual data. Time series econometric techniques were used including unit root tests, co-integration and the model was estimated using OLS estimation procedure. The results show support for the influence of income/growth, interest rate, inflation, imports and exports on the saving rate for Uganda. Income remains the most important determinant of national saving. However, policy makers seeking to promote saving through increasing income, for example by reducing taxation of incomes, should be careful since an increase in income increases the capacity for consumption as well as saving. However, policy makers also need to consider other shorter-term motives for saving that will improve the investment performance of the economy. Prudent macroeconomic policy and strategies that promote exports and control inflation would boost savings in Uganda.
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    Analysis of tax buoyancy in Uganda (1991-2016)
    (Makerere University, 2018-02) Nakato, Doreen
    The main objective of this study was to analyze responsiveness of tax revenue to changes in national income in Uganda for the period1991 to 2016. The data was obtained from Uganda Revenue Authority website and World Bank website (development indicators) and were annual secondary time series. Variables used in this study were mainly the different forms of taxes in Uganda i.e. direct and indirect taxes, VAT, government taxes and taxes on international trade, other variables included National income (GDP), imports of goods and services, government expenditure and value addition by industry and agriculture. The study findings from the estimated the Error Correction models revealed that Taxes are not wholly reactive to changes in income as most buoyancy estimates are below unity. Buoyancy coefficients of individual taxes were varied. Taxes on international trade had the highest buoyancy of 13.16, followed by value added tax with buoyancy of 1.62. This study recommended broadening the tax base and bringing new tax payers in to tax net, eliminating tax exemptions, creating economic environment that increases revenue and decreases overall budget deficit and foreign reliance are the timely fiscal policy issues that the study would like to raise to the concerned bodies based on the implications of the analyses.
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    An Analysis of the Determinants of Export Performance of Developing Economies within the Sub-Saharan Africa: The Case of SADC Member Countries (2001-2015)
    (Makerere University, 2017-11-28) Mbamilo, Renatus
    This paper analyzed determinants of export performance in Southern Africa Development Community (SADC) sub-region over the period 2001 to 2015 covering all 15 member countries namely: Angola, Botswana, Democratic Republic of the Congo (DRC), Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. The study used panel data technique where feasible generalized least square (FGLS) method was further used to give efficient estimates. The study used both, demand side and supply side determinants of export performance namely: Average Income of Major Export Destination Countries (AIMED) and Real Effective Exchange Rate (REER); and Gross Domestic Product (GDP), Foreign Direct Investment (FDI), Terms of Trade (TOT), Exporting Country’s Infrastructure (INFR), Trade Openness (TOP), and geographical positioning of an exporting country (landlockedness of the country), respectively. The estimated results revealed that Gross Domestic Product, Average Income of Major Export Destination Countries, Terms of Trade and Trade Openness positively and significantly influenced the export performance of the SADC sub-region by 1% while Real Effective Exchange Rate and Exporting Country’s Infrastructure affected the export performance positively and significantly at 5% and 10% respectively. In contrast, the Foreign Direct Investment (FDI) and geographical positioning of an exporting country (landlockedness of the country) had insignificant impact to the export performance of the sub-region. The study concluded with policy recommendations to invest immensely in internal, to embark on measures that would lead to improve terms of trade (TOT), to enhance their macroeconomic policies that are geared towards improving economic growth, to open up in performing trade with the rest of the world, and to attract more FDI that target export sector.
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    An analysis of the efficiency of Uganda's public health care system: a case study of Health Centres III & IV in southwestern Uganda
    (Makerere University, 2019-10) Ayesigwa, Richard
    Health centres represent a significant proportion of health provision and expenditures in Uganda, accounting for about 18.5% of total health expenditure. Improving the technical efficiency of Health centres in Uganda can result in large savings which can be devoted to expand access to services and improve the quality of care. This paper explores the technical efficiency of health centres III and IV in South Western Uganda during the financial year 2012/2013. This was a cross-sectional study using secondary data. Data on Inputs and outputs of health centres III and IV were obtained from the Uganda Bureau of Statistics (UBoS) 2012/13 healthcare seeking by households for 12 public Health Centre IIIs and 4 Health Centre IVs. An output-oriented model with Variable Returns to Scale to estimate the efficiency score for each health centre was assumed using Data Envelopment Analysis (DEA) with STATA13. The study used a Tobit model, to investigate the relevance of the variables used in measuring the efficiency of the health centres. The average variable returns to scale (Pure) technical efficiency score was 81.4% and the average scale efficiency score was 89.6% while the average constant returns to scale technical efficiency score was 73%. Technically inefficient health centres could have become more efficient by accommodating about 18% increase in the average patient per day without changing the total number of inputs. Alternatively, they would achieve efficiency by for example transferring on average the excess 2 beds and 1 medical staff to other levels of the health system without changing the total number of outputs. Tobit regression indicates that significant factors in explaining hospital efficiency are: beds (p < 0.01) and medical staff (p<0.01) as well as the proportion of patient visits per day (p < 0.05). Health centres identified at the high and low extremes of efficiency should be investigated further to determine how and why production processes are operating differently at these Health centres. As policymakers gain insight into mechanisms promoting health centres services utilization in health centres with high efficiency, they can develop appropriate strategies for supporting Health centres with low efficiency. This will improve their service and thereby better address unmet needs for better health service delivery at the lower health sub-districts in Uganda.
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    Assessing the effect of agricultural raw material exports on the economic growth of Uganda
    (Makerere University, 2024-09) Nyaketcho, Teddy
    In the realm of economic development, the pivotal role of exports in propelling growth is notably conspicuous, especially in Uganda and analogous developing nations, where a substantial dependence on agricultural exports intricately shapes the economic landscape. Uganda takes center stage in the complex interplay between agricultural exports and economic growth, drawing attention from economists and researchers alike. This nexus forms the core of discussions regarding the impact of Uganda's unprocessed agricultural product exports on the broader economic development of the nation. Traditionally, items such as coffee, tea, cotton, and tobacco dominated the export sector. However, the landscape has evolved, with non-traditional items overtaking the traditional ones. These now include fish and fish products, gold, animal/vegetable fats and oils, iron and steel, petroleum and its products, sugar, maize, flowers, among others (Byanyima.F, 2011, Sewanyana, 2011, Ben Shepherd, 2016, BOU, 2017). This transformation underscores the dynamic nature of Uganda's export profile and the need for a nuanced understanding of the evolving economic landscape and whether the largely traditional raw material exports still play a large role.Proponents (Bbaale, E. and Mutenyo, J., 2011; Byanyima.F, 2011; Ssewanyana, Sarah, John Mary Matovu, and Evarist Twimukye, 2011) assert that Uganda's agricultural exports can act as a potent driver of economic growth. Rooted in a nuanced paradigm specific to Uganda's economic context, these exports yield indispensable foreign exchange earnings strategically directed towards financing the importation of crucial capital goods and transformative technologies (Shinyekwa, I. M., Bulime, E. W., Nattabi, A. K., & Luwedde, J., 2021). This argument posits that these investments not only enhance productivity but also cultivate robust economic growth uniquely tailored to Uganda's conditions. Moreover, the impact of agricultural exports extends beyond financial transactions, shaping Uganda's labor markets, particularly in rural areas. This narrative underscores the potential for holistic economic progress driven by Uganda's agricultural sector. The significance of raw material exports to countries like Uganda becomes even more apparent when considering the role of capital goods, encompassing machinery and equipment. These components are intricately linked to enhancing agricultural productivity, amplifying output, and accruing foreign exchange earnings (Shinyekwa et al., 2021). Advanced agricultural technologies further bolster productivity, translating into increased yields and economic development. The importation of these capital goods and technology generates benefits across diverse economic sectors in Uganda, fostering job opportunities and facilitating overall economic growth.
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    Assessing the effect of gross domestic savings on domestic private investment in Africa.
    (Makerere University, 2020-11) Kagolo, Ronald
    This study examines the effect of gross domestic savings on domestic private investment in Africa from 1988-2018 for 43 countries. Using a panel data from World Development Indicators and a system generalized methods of moments method, the results indicate that; (1) gross domestic savings significantly affects private domestic investment both in the short and long run (2) domestic private investment is also positively influenced by domestic credit to private sector in both the short and long run (3) trade as a percentage of GDP positively affects domestic private investments in both the short and long run. Given these findings the study recommends that policy makers must focus on formulation and implementation of policies aimed at increasing savings, increasing access to cheap and affordable credit to the private sector and improving the business environment for productive activities to flourish and spur further private domestic investments. Keywords; Africa, Gross Domestic Savings, Domestic Private Investment
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    Assessing the Effect of Idiosyncratic Shocks on Coping Mechanisms among Agricultural Households in Uganda
    (Makerere University, 2018-11) Ishebo, Jackson
    The study sought to analyze the ex-ante and ex-post coping mechanisms to the idiosyncratic shocks affecting agricultural households. The study employed multinomial logit model for analysis on UNPS 2016 dataset. There were 158 households that suffered from idiosyncratic shocks. Majority reported having suffered from death (55), theft (54) and conflicts (25) while only 15 households reported having suffered from illness. The most popular coping mechanism was relying on saving across all idiosyncratic shocks that affected the household. From the model it was observed that households affected by reduction in earnings were 7.2 times and 8.47 times to cope by relying on savings or other mechanisms respectively other than relying on help from family/friends/ LGs. Households that were affected by theft were more likely to cope by relying on help from family/friends/LG. while households affected by conflict were 9 times likely to cope by relying on savings. This study recommends that the savings culture be boosted especially in the rural areas to support them after effect with idiosyncratic shocks.
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    Assessing the impact of mobile money services on financial inclusion in Uganda
    (Makerere University, 2021-03) Ibudi, Daphne
    Financial access facilitates day-to-day living, and helps families and businesses plan for everything from long-term goals to unexpected emergencies. Financial inclusion has been identified as an enabler for 7 of the 17 Sustainable Development Goals. The World Bank Group considers financial inclusion a key enabler to reduce extreme poverty and boost shared prosperity. Countries that have achieved the most progress toward financial inclusion have allowed mobile financial services to thrive. And indeed many attribute the increase in financial sector deepening to growth in usage of mobile financial services. This study assesses the impact mobile money services have had on financial inclusion in Uganda. Specific focus was on the factors affecting financial inclusion, the extent of uptake in mobile money services and the relationship between mobile money services and financial deepening in Uganda. The study used both qualitative and quantitative methods in data collection and analysis relying on similar research studies carried out in this field both in Uganda, in the region and globally. The study found that locality, gender and level of income are some of the major factors that drive financial inclusion in Uganda. Given the significant uptake in the use of mobile money services and the visible positive impact that mobile money has on financial inclusion; the implications therefore for the government are to leverage on the mobile money sector to further the financial inclusion agenda in Uganda through interventions like stronger regulation, subsiding the sector and drafting policies to encourage collaboration between other service providers and mobile money services among others.
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    Assessing the impact of tax policies on the growth of small and medium enterprises in Kawempe division Kampala district.
    (Makerere University, 2024-12) Ashaba, Aheebwa
    The growth of the world’s economy has been heavily reliant on taxes. This study assessed the impact of tax policies on the growth of Small and Medium Enterprises (SMEs) in Kawempe division Kampala district. Specifically, the study examined the effect of: tax registration and assessment on the growth of SMEs; tax rates on the growth of SMEs; and effect of tax incentives on the growth of SMEs in Kawempe division Kampala district. The study adopted a descriptive research design and data was collected from a sample of 300 business operators in Kawempe division, using administered questionnaires. Data was analyzed descriptively using frequencies, percentages, mean and standard deviation; and the inferential statistics used were Pearson’s correlation coefficient and regression analysis. Findings indicated: a positive weak significant relationship between tax registration and assessment and growth of small and medium enterprises in Kawempe division (r= 0.122, P<0.05); a positive weak significant relationship between tax rates and growth of small and medium enterprises in Kawempe division Kampala (r=0.120 and P-Value<0.05); and a moderate positive relationship between tax incentives and growth of small and medium enterprises in Kawempe division (r=0.430, p-Value<0.01). Findings indicate that tax registration, tax rates, and tax incentives jointly account for 23.1% of the variations in the growth of SMEs in Kawempe division (Adjusted R2 = 0.231). The study concluded that Tax Incentives have the strongest positive and significant influence on SME growth, reinforcing the importance of maintaining and enhancing incentives to foster business growth. Although Tax Rates and Registration had a weaker impact compared to tax incentives, they still contribute positively to the overall model, highlighting the need for a balanced approach in tax policy design. The study recommended that: The Ugandan government should establish an efficient and competitive tax rate system that is aligned with the economic conditions of SMEs. Lower tax rates would reduce production costs, stimulate sales, and ultimately foster SME growth. To enhance tax incentives, the government should strengthen tax incentives, such as investment deductions and tax holidays, to support SME development. These incentives help reduce operational costs, encourage investments, and provide critical support to new businesses that may lack access to financing in their early stages. To improve Tax Registration and Compliance, efforts should be put to simplify and make the process more transparent could improve compliance and encourage businesses to formalize their operations.