Uganda among fastest growing economies in the world- Kasaija
What you need to know:
- The government says Uganda’s economy more than tripled to Shs 226.3 trillion (about USD 61.3 billion), this financial year 2024/25, from Shs 64.8 trillion (about USD 27.9 billion) in FY2010/11.
- Poverty has reportedly decreased to 16.1 per cent in FY 2023/24 from 24.5 per cent in FY 2010/11, with persons in the subsistence economy reducing to 33 per cent in FY 2023/24 from 69 per cent in FY 2010/11.
The Minister of Finance, Planning and Economic Development, Mr Matia Kasaija, has said Uganda is among the fastest-growing economies in the world, and is projected to become the fastest-growing by 2031, according to the Harvard Growth Lab.
“This is despite the various domestic, regional and global shocks that have impacted us in recent years. The growth is on account of a unique economic ideology championed by His Excellency the President, which is built on the four principles of socio-economic transformation, patriotism, Pan-Africanism and democracy,” Mr Kasaija said while presenting his national budget speech at Kololo Independence Grounds.
According to the minister, the first half of Uganda Vision 2040 started in 2010 with the implementation of the first five-year National Development Plan (NDPI), and thereafter NDPII and NDPIII, which end this financial year.
The initial years of the National Resistance Movement (NRM) Government before 2010 were dedicated to restoring sustainable peace, recovering and stabilising a broken economy, addressing extreme poverty and implementing reforms that liberalised the economy and created an environment for the private sector to flourish, according to Mr Kasaija.
The government has been in power since 1986 when President Museveni assumed power after a five-year guerilla warfare.
“We are now in the phase of socio-economic transformation to facilitate wealth creation and prosperity. Your Excellency, I thank and commend you for this. The budget for financial year 2025/26 will conclude the implementation of the current NRM Manifesto and start the implementation of the Fourth National Development Plan (NDPIV),” he added.
He said in the next 15 years, the successive National Development Plans will implement the Tenfold Economic Growth Strategy which aims to expand the size of the economy to USD 500 billion by 2040, from USD 61.3 billion estimated this financial year 2024/25.
According to the minister, peace and security of person and property, as well as political stability have been the foundation upon which sustained high economic growth and wealth creation have been built after the NRM government which has led Uganda since 1986 undertook targeted investments that have built a firm foundation and strengthened the resilience of the economy.
The government says Uganda’s economy more than tripled to Shs 226.3 trillion (about USD 61.3 billion), this financial year 2024/25, from Shs 64.8 trillion (about USD 27.9 billion) in FY2010/11.
“In March 2024 Uganda met the criteria for graduation from the category of Least Developed Countries (LDCs). Life expectancy has improved to 68.2 years in FY 2023/24 from 63.3 years in 2010/11 and 50.4 years in 2002. This has been partly driven by improvements in access to health services, massive immunisation campaigns that reduced disease prevalence and child mortality,” Mr Kasaija added in the speech read to an audience largely composed of civil servants and NRM-leaning politicians after most of the opposition members boycotted the event.
According to the minister, the population living within a 5 kilometre radius of a health facility is now 91 per cent, from about 80 per cent in FY 2010/11; and 81 per cent of parishes now have government-aided schools.
ICYMI:
Poverty has reportedly decreased to 16.1 per cent in FY 2023/24 from 24.5 per cent in FY 2010/11, with persons in the subsistence economy reducing to 33 per cent in FY 2023/24 from 69 per cent in FY 2010/11.
“Uganda is becoming a more equal society. The results of the National Household Survey released by the Uganda Bureau of Statistics last month show that income inequality has declined significantly in the past four years. The Gini coefficient, which is a statistical measure used to determine the extent of income inequality within a population, has reduced to 38 per cent from 41 per cent in 2020,” the minister explained.
