Abstract

his country study is a background paper prepared for the comparative analysis of organization and performance of cotton sectors in Sub-Saharan Africa, a study carried out by the World Bank, with the objective of analyz-ing the links between sector structure and observed performance outcomes and thus draw lessons from reform experience that can provide useful guidance to policy-makers, other local stakeholders, and interested donors agencies. It de-scribes and reviews the cotton sector situation in Uganda. During the 1960s, Uganda was Sub-Saharan Africa’s largest cotton producer. However, political in-stability and poor policy choices of the 1970s led the sector to its demise. At-tempts to revive the sector with lending operations during the 1980s failed, but policy reforms combined with a lending operation and the high cotton prices of the 1990s revitalized the sector. However, there is a sense that the sector lags behind its full potential. Various reports have identified low quality of cotton, lack of domestic textile industry, and low use of purchased inputs due to lack of rural credit as the key constraints. This paper argues that the fundamental problem of Uganda’s cotton sector is its low profitability, which reflects the displacement of cotton by food crops. Furthermore, its earlier process reflects, in part, the forced labor conditions under which cotton was grown. The paper concludes that pro-motion of biotechnology and training of cotton growers are two areas that should receive priority. Yet, the production targets announced by the government and many other entities are unlikely to be met any time soon.