Uganda aims for higher economic growth in 2024/2025 fiscal year

Uganda aims for higher economic growth in 2024/2025 fiscal year

Minister Kasaija outlined several new tax measures

KAMPALA, Uganda | Xinhua | Uganda’s Finance Minister Matia Kasaija on Thursday said the East African country’s economy will grow by 7 percent in the fiscal year (FY) 2024/2025, which will start on July 1.

The growth will be driven through increased oil and gas activities, growth in exports, increase in tourism activities, agro-industrialization and light manufacturing, private investment growth supported by foreign direct investment, remittances and a stable macroeconomic environment, said Kasaija while presenting the 2024/2025 financial year budget before parliament in a ceremony broadcast live on television.

He said other driving factors include the continued investment in industrial parks, construction and maintenance of roads and bridges, rehabilitation of the Meter Gauge Railway and commencement of the Standard Gauge Railway, expansion of information, communication and technology infrastructure, and provision of reliable and affordable electricity.

“Uganda’s economic outlook is positive and optimistic. The economy has remained resilient and has fully recovered from a myriad of internal and external shocks,” said Kasaija. “Next financial year, the economy is projected to get back to Uganda’s steady-state growth potential of between 6.4 and 7 percent, and double digit over the next five years.”

Uganda’s economy grew 6 percent in the financial year 2023/2024 compared to 5.3 percent in 2022/2023, according to the Ministry of Finance, Planning and Economic Development.

Minister Kasaija said Uganda’s growth strategy for next financial year and in the medium term will be anchored on four key growth drivers, namely agro-industrialization, tourism development, mineral development including oil and gas, and science, technology and innovation.

“These are the anchor sectors that are going to propel Uganda to a 500-billion-dollar economy in the next one-and-a-half decades,” said Kasaija.

The minister, however, said Uganda’s growth prospects face some risks that include climate change affecting agricultural production and infrastructure, regional and global geopolitical tensions, high interest rates that constrain access to affordable debt, and fluctuations in global commodity prices that will need to be mitigated.

“To minimize the effects of these risks, the government is implementing climate change adaptation measures, exploring cheaper sources of financing including climate finance, and ensuring frugality in government expenditure,” said Kasaija. ■

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