Uganda’s Economy Strong and Poised for Double-Digit Growth, Says PSS Ggoobi

Uganda’s economy is exhibiting strong performance across key macroeconomic indicators and is on track for double-digit growth with the commencement of oil production, according to the Permanent Secretary/Secretary to the Treasury (PSST), Ramathan Ggoobi. Speaking on a national television talk show, PSST Ggoobi painted a positive picture of the nation’s financial health and future prospects.

“Uganda’s economy is performing well, with key macroeconomic indicators in good shape,” stated PSST Ggoobi. He highlighted that the economy grew by over 6% in the last financial year and is projected to expand by 6.4% this year. Looking ahead, he expressed confidence that growth will surge into double digits once oil production begins.

In a region often grappling with inflationary pressures, PSST Ggoobi proudly announced, “Uganda is one of the countries in the developing world with the lowest inflation rate. We are now projecting an annual inflation rate of 3.6%, below our target of 5%. Additionally, we have one of the most stable currencies in the region.”

The PSST emphasised that the economic growth has been broad-based, encompassing vital sectors such as agriculture, industry, services, and the financial sector. He further noted that the ABSA financial index positions Uganda favorably among its East African Community (EAC) partners in terms of financial deepening.

Uganda’s strong ties with its diaspora are also contributing significantly to the economy. PSST Ggoobi revealed that Ugandans living abroad remitted approximately $1.4 billion in the last 12 months, with projections indicating a further increase by the end of the current fiscal year.

Sound monetary policy has fostered a favourable environment for private sector growth. PSST Ggoobi reported that private sector credit has grown by an average of 4.2%, adding that government domestic borrowing has not impeded the private sector’s access to credit.

Looking towards the future, PSST Ggoobi outlined an ambitious strategy to propel the economy to grow tenfold within the next 15 years. This intentional approach, centred around “ATMS” (the specific details of which were not elaborated upon), aims to accelerate economic expansion.

The government’s commitment to uplifting Ugandans in the subsistence economy is evident through initiatives like the Parish Development Model (PDM). PSST Ggoobi noted that this “transformative idea” is a crucial step in integrating the 33% of the population in the subsistence economy into the money economy, with 3.6 million Ugandans already benefiting from the program. He underscored the importance of education and financial inclusion in addressing fundamental challenges faced by individuals.

Furthermore, PSST Ggoobi affirmed the government’s focus on developing critical infrastructure enablers. These include significant investments in energy generation and transmission, the ongoing Standard Gauge Railway (SGR) project, the development of key road networks to enhance connectivity, and improvements to airports.