Like many Ugandan districts, the economy of Arua is dependent on agriculture and employs over 80% of the total population. Fertile soils and suitable climate combine to support the cultivation of a number of crops in most parts of the district. Agriculture is mainly subsistence (80%) and takes place on smallholdings of approximately two acres using mainly simple farming tools (hoes, pangas and harrowing sticks). Only 0.5% of the population are engaged in commercial agriculture. Family members constitute the single most important source of labour.
Both food and cash crops are grown. The major food crops include cassava, beans, groundnuts, simsim, millet and maize. Tobacco is the major cash crop and is the main source of livelihood for the majority of the population in the district. It is grown mainly in the fertile highlands. Cotton used to be grown in the lower and drier plains but due to marketing problems, it has been largely abandoned. There is also an insignificant growing of coffee, which is done mainly in the temperate areas along the boarders of Arua and Nebbi district. There is renewed interest in the promotion of coffee production in many areas of the district now.
Other important economic activities in the district include formal employment, which employs about 9% of the population, petty and formal trade, which employs 3.8% and 0.7% respectively and cottage industry that employs 2.3%. The remaining proportion of the population depends on family support and other miscellaneous activities
