• Uganda’s poverty rate declined from 30.1% in 2019/20 to 26.4% in 2023/24.

• Rural poverty remains higher at 30.2% compared with 19.8% in urban areas.

• The World Bank urges structural reforms to boost agricultural productivity and shift labor into more productive jobs.

Uganda’s poverty rate fell to 26.4% in the 2023/24 fiscal year from 30.1% in 2019/20, the World Bank said in a report published on Sept. 30, 2025. The institution linked the decline to the country’s economic recovery after the Covid-19 pandemic.

Despite the improvement, poverty levels remain uneven across regions. Rates reached 30.2% in rural areas compared with 19.8% in urban zones. The Eastern and Northern regions recorded the highest poverty levels at 39.2% and 34.3% respectively, against 12.8% in the Central region.

The government launched the Parish Development Model (PDM) in 2022 to increase household incomes, improve livelihoods, and promote financial inclusion through a parish-level revolving fund. Kampala also targets poverty reduction through its National Development Plan 2019–2040, which emphasizes GDP growth, healthcare, and education improvements.

The World Bank warned that reform momentum has slowed in recent years, undermining both economic growth and poverty reduction. The institution recommended that Uganda accelerate structural transformation by shifting workers into more productive sectors and raising agricultural productivity, as poor populations remain concentrated in farming.

The Bank also called on Kampala to rebalance fiscal consolidation by directing more spending toward underfunded social sectors, rather than focusing disproportionately on infrastructure.

The World Bank expects poverty in Uganda to decline more rapidly in 2025, supported by medium-term economic growth.

This article was initially published in French by Lydie Mobio

Adapted in English by Ange Jason Quenum