Kilimani, NicholasHeerden, Jan vanBohlmann, HeinrichRoos, Louise2023-02-282023-02-282016Kilimani, N., van Heerden, J., Bohlmann, H., & Roos, L. (2016). Counting the cost of drought induced productivity losses in an agro-based economy: The case of Uganda (No. 201649).https://econrsa.org/wp-content/uploads/2022/06/working_paper_616.pdfhttps://nru.uncst.go.ug/handle/123456789/8031Climate variability can affect economies directly through its impact on agricultural output, and indirectly, through its effect on the activi- ties of down-stream industries and household welfare. This paper uses a Computable General Equilibrium model with a disaggregated agricultural sector to analyse the impact of a drought on the Ugandan economy. The losses were assessed with respect to GDP, agricultural output, employ- ment, the trade balance and household consumption. The drought effects were shown to vary by sector. The fall in employment within the agricul- tural industries was less compared to the output losses. At a macro level, exports declined, while at a household level, the terms of trade gains mit- igated part of the potential welfare losses thereby reducing consumption, but to a lesser degree. The findings indicate that a drought can cause substantial losses to the economy. The need for targeted interventions to mitigate such drought impacts is therefore critical.enComputable general equlibrium modellingDroughtEco- nomic activityArticle