Wealth creation initiatives have boosted Uganda’s economic recovery, says Ggoobi

The Permanent Secretary in the Ministry of Finance and Secretary to the Treasury, Mr Ramathan Ggoobi has said that Uganda’s economy has fully recovered from the previous global, regional and domestic shocks and is now on the right growth path.

Addressing journalists in Kampala on Tuesday, Mr Ggoobi said that this strong recovery has been mainly on account of increased investments and exports, reflected in the growth of agriculture, industry and services sectors of the economy.

 “Over the past two financial years, the size of the economy increased to Shs.202.7 trillion (US$ 53.6 billion) in FY 2023/24 from Shs.183 trillion (US$ 48.8 billion) in FY 2022/23. In real terms, Uganda’s GDP grew by 6.1% from 5.3% the previous financial year ,” he said.

The government, he said, has over the last ten years cumulatively invested over Shs 8.03 trillion in key wealth creation initiatives like Parish Development Model, Emyooga, Youth Livelihood, Small Business Recovery Fund and Agricultural Credit Facility.

Mr Ggoobi said the economy is projected to grow by 6.4% at the end of FY 2024/25, 7.0% in FY 2025/26 and to double digits by FY 2029/30. He explained that the tenfold growth strategy which will be implemented effective FY 2025/2026 and the medium term is designed to shift Uganda’s economic growth rate to a higher trajectory with an average real economic growth rate of about 8% per annum.

“Effective next financial year, the budget will be anchored on the strategic direction of the NDPIV and the ten-fold growth strategy of growing the size of Uganda’s economy from the current GDP of USD 53 billion to USD 500 billion by the year 2040,” said the PSST.

He said the ultimate goal of the Budget for FY 2025/2026, is to accelerate economic growth to at least 8% and to double digits in the medium term by building an independent, integrated, self-sustaining and competitive economy through full monetization and formalization of the economy.  

“Go and tell all Ugandans that the future of this country is bright. We shall continue engaging you directly like we are doing now to ensure that Ugandans get the right information from the people in charge of the economy,” he said.

The Accountant General, Lawrence Semakula, also briefed them on the public finance management reforms, including Laws and Regulations, automation of processes and the Treasury Single Account.