GGOOBI: Ugandan economy back on track, DRC reparation continues

Kampala, Uganda | THE INDEPENDENT |  Secretary to the Treasury Ramathan Ggoobi has said Uganda’s economy is back on track, and indications are of even stronger growth in the coming years.

He said this as he announced today that government has released Sh5.899 trillion, representing 21.3% of the discretionary budget, to cater for first quarter (July to September ) expenditure. Uganda’s budget for the this financial year is sh72 trillion.

“The QI release is in line with our continued effort of fiscal consolidation through coordinated fiscal and monetary policy. All accounting officers must ensure that they pay salaries, pensions and gratuity by the 28 th of every month,” Ggoobi warned.

While Shs1.990 trillion of this will cater for wages and salaries across government, a lot of it will go towards resolving domestic arrears amounting to Sh199.83 billion and Sh247 billion towards the International Court of Justice (ICJ) award to DRC of $325million.

“Uganda’s economy has fully recovered from various shocks, crises and false alarms. You recall that when Covid-19 happened, leaders were told it would be worse than the financial crisis of 2008 and potentially as bad as the Great Depression of the 1930s. Instead, a fast and strong recovery has unfolded,” Ggoobi told the press in Kampala today.

He said GDP grew by 6 percent last financial year 2023/24 up from an average of 4.1 percent in period between FY 2019/20 and FY2022/23.  “Remember that GDP growth had previously reduced to 5. This 6 % impressive growth was on account of higher growth in all sectors. The services sector grew by 6.6%, up from 5.9%; while the industry sector increased by 5.8%, up from 4.0%. The agriculture, forestry, and fishing sector saw growth of 5.1%, compared to 4.5% previously.”

He added that economic growth in FY2024/25 is projected between 6 and 6.5 percent, rising above 7 percent in the subsequent years driven by our Tenfold Growth Strategy. “This strategy is hinged on increased investment and growth in agro-industry; tourism development; mineral development including oil and gas activities; and science,  and innovation (STI) including ICT.”

“At 3.9 percent in June 2024, inflation has been contained within the target thanks to the strong coordination of monetary and fiscal policies. Uganda has sustained good food supply chains leading to low food crop inflation.”