To explore factors underlying growth and poverty reduction in Africa, as well as the magnitude of future challenges,
we use micro level evidence from Uganda spanning the 1992-2000 period. Policy variables such as farmgate prices for
agricultural exports, access to public goods such as health care, electricity, and infrastructure, as well as initial endowments of
physical and human capital are found most important for growth and poverty reduction. Simulations confirm that policies to
confront widening regional disparity are feasible but will require a sustained effort.