Ggoobi Lays Out Roadmap for Uganda’s $500 Billion Economy by 2040

Uganda is firmly setting its sights on a formidable economic transformation, aiming to achieve a USD 500 billion economy by 2040. This ambitious vision, championed by Ramathan Ggoobi, the Permanent Secretary of the Ministry of Finance and Secretary to the Treasury (PSST), hinges on a meticulously crafted strategy dubbed ATMS, focusing on Agro-Industrialisation, Tourism, Mineral Development, and science and technology innovation.

Speaking at the Absa 2025 Post-Budget Dialogue at the Kampala Serena Hotel yesterday, PSST Ggoobi articulated a clear path forward, emphasising that this “beautiful dream” is achievable through disciplined execution and national consensus. “That acronym ATMS was deliberately crafted to work on our mentality that we are going as a country to invest in certain things for us to draw bigger things in the future,” Ggoobi explained, underscoring the strategic intent behind the chosen pillars.

The PSST stressed the critical need for building national consensus and teamwork to ensure the successful implementation of these priorities. He highlighted the challenge of “indiscipline”, where agreed-upon national priorities are sometimes sidestepped. “How do we team up and get the consensus that this is what we want to do?” he posed, emphasising the importance of collective effort and shared understanding.

A significant focus of Uganda’s economic transformation will be on skilling its workforce. Ggoobi candidly addressed the issue of unemployability among a segment of the youth, stating, “There’s no country that has transformed with so many people who are unemployable.” He advocated for a market-driven approach to skills development, urging that “we use the industry to determine which kind of skills we need to digitise and innovate.” This aligns with reports from the Uganda Bureau of Statistics (UBOS), which have consistently highlighted a mismatch between educational outcomes and market demands.

The recently unveiled UGX 72.37 trillion national budget for FY 2025/26 has been met with optimism from the business community, particularly regarding measures aimed at enhancing liquidity and fostering business growth.

Michael Segwaya, Executive Director/Chief Finance Officer at Absa Bank, lauded the allocation of UGX 1.4 trillion towards clearing domestic arrears, a substantial increase from UGX 200 billion in the previous financial year. “This is a good gesture… it eases the cost of doing business, and this also helps the government,” Segwaya noted, highlighting the positive impact on business liquidity.

Allan Ssenyondwa, Economist and Policy & Advocacy Manager at the Uganda Manufacturers Association (UMA), echoed this sentiment. “To hear that there’s a UGX 1.4 trillion coming, this is a huge welcome to the manufacturing sector,” he stated, emphasising the crucial role of financing and effective demand in the sector. Ssenyondwa also expressed keen interest in the impact of the Parish Development Model (PDM) on boosting purchasing power among Ugandans.

Further incentivising business formalisation and growth, Garry Kizito, Assistant Commissioner Compliance at Uganda Revenue Authority (URA), announced an income tax exemption for qualifying start-ups beginning July 1st. “Open up a business with an investment capital that doesn’t exceed UGX 500 million, you will be entitled to income tax exemption for three years,” Kizito revealed, a measure designed to support nascent businesses and address the high rate of informality in Uganda’s entrepreneurial landscape.

David Wandera, Managing Director of Absa Bank, underscored the ultimate goal of budgetary allocations: “Budgets must ultimately translate into impact, in jobs created, arrears cleared, and opportunities unlocked for households and entrepreneurs alike.” He reiterated the vital role of financial institutions in facilitating this translation by funding key sectors like agriculture, trade, and SMEs, and enhancing overall business resilience.

Uganda’s journey to a USD 500 billion economy by 2040 is laid out, underpinned by strategic sectoral investments, a commitment to skilling its populace, and supportive fiscal policies aimed at strengthening the business environment. The emphasis on national consensus and disciplined execution will be paramount in realising this ambitious vision.