Uganda has one of the youngest and mostrapidly growing populations in the world. The most importantdemographic issue for Uganda is related to the age structurerather than the overall size of its population. A very youngpopulation represents a major challenge for Uganda in theshort and medium term. In order to change its population agestructure faster, Uganda needs to accelerate the demographictransition, namely the shift from high levels of mortalityand fertility to low levels of mortality and fertility. Oncemortality (especially infant and child) and fertility ratesbegin to fall, young age dependency ratio will follow thesame trend albeit with some lag. This will have positive -and quite possibly major - implications for the economicgrowth. Given the high fertility and reduced mortality overthe last several decades, Uganda's population will begrowing rapidly over the next several decades. Uganda'seconomic future looks brighter under assumptions ofdemographic change.