Uganda’s economy to grow by 6% – says Kasaija

The Minister for Finance, Matia Kasaija has said Uganda’s economy is projected to grow at 6 percent in the financial year 2024/ 2025.

The minister told parliament that in the next financial year, the country’s GDP will further expand to Shs 225.5 trillion ($60 billion).

He however said these numbers exclude the anticipated oil and gas revenues as well as the planned interventions to grow the economy tenfold.

Kasaija told parliament that the growth will be driven by increased oil and gas activities as the country moves towards first oil production in financial year 2025/2026 among other factors.

He noted that increase in tourism activities supported by investment in tourism infrastructure, branding and marketing, and effective implementation of the Meetings, Incentives, Conferences and Events (MICE) programme will also help drive Uganda’s growth.

Kasaija also mentioned agro-industrialization and light manufacturing supported by access to affordable credit through Uganda Development Bank (UDB), investments supported through Uganda Development Corporation (UDC); the Parish Development Model, small business recovery fund, Emyooga, the Presidential Industrial Hubs for Youth Entrepreneurs, and programmes to support exporters as well as growth and productivity of women enterprises.

The minister however said Uganda’s growth prospects are threatened by climate change affecting agricultural production and infrastructure.

He noted that regional and global geopolitical tensions, high interest rates which constrain access to affordable debt, and fluctuations in global commodity prices will also threaten Uganda’s growth prospects. ENDS

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