Uganda ranks 135^th globally in prosperity index, performing better than the average for Sub-Saharan nations, according to 2019 Legatum Prosperity Index released today.

The ranking done by Legatum Institute is based on a variety of factors including wealth, economic growth, education, health, personal well-being, and quality of life.

The index reveals that global prosperity is at its highest ever level, with 148 out of 167 countries experiencing higher levels of prosperity than a decade ago.

The increase has been driven by more open economies and improved lived experiences due to better health, education, and living conditions around the world. However, weaker personal freedom and deteriorating governance are holding back further improvements in prosperity.

According to the report, governance has declined around the world over the last 10 years and personal freedoms have also deteriorated, with a particular decline in the freedom to speak, assemble and associate.

Meanwhile, although global levels of safety and security have bounced back since 2017 due to a reduction in politically-related terror and violence and a slight reduction in terrorist activity, the index says, they remain below 2009 levels and have fallen significantly in Middle East  and North Africa and Sub-Saharan Africa over the last decade, primarily due to an increase in the number of new conflicts and a rise in terrorism in these regions.

However, globally social capital has improved over the last decade, with social networks strengthening and increased trust in institutions such as the police force, the judiciary, and the military. Over the same period of time, people around the world have become more tolerant of other groups in society, particularly of the LGBT community, with residents of 111 countries expressing more tolerance than they did 10 years ago.

Dr Stephen Brien, Director of Policy at the Legatum Institute, commented: “There is a fundamental relationship between strengthening institutions and broader economic and social development. This is highlighted in the Index and is also something we’ve seen through our work this year focusing on both the African continent and the United States, where the importance of institutions underpinning social wellbeing is particularly evident.

“The findings of the Index have also reinforced our belief that the strength of personal and social relationships, social norms, and civic participation is an inherent and essential component of a prosperous society. It demonstrates the vital importance of viewing prosperity holistically to create an environment in which everyone can reach their full potential.

“Policymakers rarely consider fiscal and macroeconomic policy at the same time as social factors. But prosperity is the result of institutional, economic, and social wellbeing working together to create effective institutions, an open economy, and empowered people who are safe, healthy and educated.”

Key Summary of the Domains and Pillars:

Inclusive Societies

• Safety and Security measures the degree to which conflict, terror, and crime have destabilised the security of individuals, both immediately and through longer lasting effects.
• Personal Freedom measures country-wide progress towards basic legal rights, individual liberties and social tolerance.
• Governance measures the extent to which there are checks and restraints on power and whether governments operate effectively and without corruption.
• Social Capital measures the strength of personal and social relationships, social norms and civic participation in a country.

Open Economies

• Investment Environment measures the extent to which investments are adequately protected and are readily accessible.
• Enterprise Conditions measures the degree to which regulations enable businesses to start, compete, and expand.
• Market Access and Infrastructure measures the quality of the infrastructure that enables trade, and distortions in the market for goods and services.
• Economic Quality measures how well a state’s economy is equipped to generate wealth sustainably and with the full engagement of its workforce.

Empowered People

• Living Conditions measures the degree to which a reasonable quality of life is experienced by all. Several key areas, such as material resources, shelter, a healthy diet, basic services and connectivity are considered.
• Health measures health outcomes, illness and risk factors, and mortality rates.
• Education measures enrolment, outcomes and quality across four stages of education (pre-primary, primary, secondary and tertiary education), as well as the skills in the adult population.
• National Environment measures the aspects of the physical environment that have a direct effect on people in their daily lives and changes that might impact the prosperity of future generations.

How Uganda ranks for the 12 measures of prosperity:

Inclusive Societies 137^th

• 133^rd for Safety and Security – up 17 places from 2009
• 117^th for Personal Freedom – down 2 places from 2009
• 118^th for Governance – down 10 places from 2009
• 139^th for Social Capital – up 3 places from 2009

Open Economies 112^th

• 83^rd for Investment Environment – up 16 places from 2009
• 81^st for Enterprise Conditions – down 7 places from 2009
• 136^th for Market Access & Infrastructure – up 1 place from 2009
• 132^nd for Economic Quality – down 9 places from 2009

Empowered People 138^th

• 143^rd for Living Conditions – down 5 places from 2009
• 140^th for Health – up 10 places from 2009
• 137^th for Education – down 2 places from 2009
• 125^th for Natural Environment – down 9 places from 2009

Major areas of concern for Uganda are:

• Property crime for which it ranks 165th
• Mental health for which it ranks 166^th
• The quality of the forest, land and soil for which it ranks 157^th
• Basic Services for Living Conditions for which it ranks 161^st

Areas Uganda does well in:

• Restrictions on International Investment for which it ranks 7^th
• Labour Market Flexibility for which it ranks 14^th

Other countries you are interested in:

• Kenya ranks 113^th overall globally, performing best on Social Capital at 44^th, Investment Environment at 67^th and Enterprise Conditions at 67^th
• Tanzania ranks 120^th overall globally, performing best on Natural Environment at 67^th, Governance at 96^th and Social Capital at 100^th
• Rwanda ranks 106^th overall globally, performing best on its Investment Environment at 42^nd, Enterprise Conditions at 50^th and Governance at 64^th

Top ten performers were; Denmark, Norway, Switzerland, Sweden, Finland, Netherlands, New Zealand, Germany, Luxembourg and Iceland while worst performers were; Sudan, Burundi, Eritrea, Somalia, Democratic Republic of Congo, Afghanistan, Chad, Central African Republic, Yemen and South Sudan.

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The International Finance Corporation (IFC) and Investment Funds for Health in Africa (IFHA)-II, a private equity fund focused on health care in Sub-Saharan Africa, on Saturday launched a US$115 million holding company to acquire and integrate targeted health care service businesses in East and Southern Africa.

The project will boost access to quality health care services to help improve lives and achieve universal health coverage across the region.

IFC is investing us$22 million in the Hospital Holdings Investment (HHI) holding company, an investment platform set up by IFHA-II, which is also supported by the European development finance organisations Swedfund, Proparco, Finnfund and IFU, Danish Investment Fund for Developing countries. HHI will be IFC’s largest equity investment in health care in Sub-Saharan Africa, outside of South Africa. IFC also mobilized US$43.2 million from other investors.

“HHI is filling a critical gap in the health care sector by providing secondary and out-of-hospital care for middle to lower middle income patients in East and Southern Africa. We aim to offer accessible, affordable and quality health care by increasing the number of hospitals and clinics we operate,” said Max Coppoolse, Chairman of the Board of HHI and Managing Partner at IFHA-II.

HHI is expected to grow services in East and Southern Africa from one hospital and 35 clinics to five hospitals and 52 clinics, serving up to 1.8 million patients annually over the next five years. This will be achieved both by building new facilities and acquiring existing health care assets.

“Access to quality and affordable healthcare is essential for building the human capital that economies need to promote growth,” said Stephanie von Friedeburg, IFC’s Chief Operating Officer, during a signing event on the sidelines of the Investment for Africa Forum in Cairo. “Private investment in the health sector in Africa—like the agreement we signed today with IFHA-II—is a key strategy for competitiveness and growth.”

IFC is the largest multilateral investor in health care in developing countries, with investments in over 200 projects in the past two decades totaling US$4.3 billion.

IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.

The Investment Funds for Health in Africa are private equity funds dedicated to small to medium size (equity) investments in private healthcare companies in Africa. IFHA, invests in private healthcare companies that operate in fast-growing markets and show unique advantages over the competition. IFHA responds to the growing need for capital investments in private healthcare in Africa, which are driven by the market growth and improved economic performance in Africa over the past number of years.

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