Ramathan Ggoobi is optimistic about Uganda's post-COVID recovery and progress

According to the Ministry of Finance, Planning and Economic Development, the economic recovery Uganda is currently experiencing is the result of deliberate fiscal and monetary policies by the Government. The Business Edge’s Edward Kayiwa spoke to Ramathan Ggoobi, the Permanent Secretary also the Secretary to the Treasury, about the state of the economy and what lies ahead. Excerpts

It has been about three years since the Government started reporting the progressive recovery of the economy after the COVID-19 pandemic. Can you provide an overview of Uganda's current economic situation?

Uganda’s economy has made significant strides in recovering from past shocks and crises. We experienced a solid growth rate of 6% last year and anticipate continued growth of 6-7% this year. Inflation remains under control - currently below 5% - despite a recent uptick due to food crop inflation caused by a dry spell.

The Shilling has shown resilience, and interest rates have stabilized. Notably, our exports have surged to over $7.5 billion up from $4.3 billion the previous year, and we have become a leading destination for Foreign Direct Investment (FDI) in Africa – standing at $2.9 billion currently - and making us fourth on the continent.

This is because the Government has been deliberate with its fiscal and monetary policies. Thankfully, our efforts have been supplemented by relatively good weather in recent years.

If we project into the future, what are Uganda's key economic strategies going forward?

We have launched a ten-fold growth strategy aiming to expand Uganda’s economy to $500 billion by 2040, up from our current GDP of $53 billion. This strategy focuses on four key areas, which we refer to as ‘ATM.’ The first of these is Agro-industrialization and Light Manufacturing, through which we aim to raise about $20b by 2040. It is one of our anchor sectors, in which we wish to employ the bulk of Ugandans.

The second is Tourism. We a plan to enhance our tourism industry to generate about $50 billion by 2040, focusing on sustainable and innovative approaches to attract more visitors. Thirdly, we are looking at leveraging our Mineral-based manufacturing sector. We are developing our petrochemical industry with the help of CNOOC and other partners, targeting about $25 billion by 2040.

Additionally, we also want to fully exploit the Science, Technology, and Innovation sector – ICT and the ‘gig economy,’ which we see as crucial for broad-based economic growth.

These strategies sound appealing, but what specific actions do you intend to undertake for their successful implementation?

We are committed to a multi-faceted approach to drive growth. First, we will clean up by enforcing existing laws and regulations to combat disorder and improve compliance. Currently, it’s like chaos is the new normal - the way we live, drive and sell in the market, and even come to functions - is all chaotic. We want to ensure that the rules are enforced so as to stem the disorder, and especially stop the hemorrhage of public funds.

If you travel out of Uganda, and visit countries in Europe and the Middle East, for instance, you note that the authorities don’t fight with anyone, because already, the citizens are by default aware of the consequences of disorder.

Next, we will work with the various stakeholders to address implementation gaps and strengthen our focus on environmental sustainability and infrastructure development. Our strategy also involves skilling up the workforce and greening up by preserving our environmental assets. Additionally, we are working on enhancing value chains and cross-border infrastructure to improve market access.

In recent months, you have been hinting on the seven key priorities for this financial year. Can you elaborate more on these?

This financial year, we have identified seven key priorities for us to start leveraging our tenfold growth. These include; investing in People through enhancing education, health services, clean water provision, and social protection. Secondly, we shall also focus on the peace and stability of the country. We’re committed to maintaining national security and ensuring the safety of lives and property.

In addition to that, we shall also pay much attention to infrastructure development and maintenance, especially road maintenance and revamping the infrastructure in the Greater Kampala Metropolitan Area, as well as building both meter and Standard Gauge Railway lines to reduce transport costs. Aside from that, we plan to boost the knowledge economy by increasing investment in research, innovation, and development. We shall also support value addition initiatives in order to provide more opportunities for entrepreneurs and businesses to thrive.

The other area we intend to focus on this year is wealth creation initiatives to enable Ugandans to lift their household incomes. For example, we have put money in banks for our farmers to be used to invest in capital assets like machinery, storage facilities and so on. Ordinarily, banks don’t have enough savings to allow them to give credit on a long-term basis, so the Government comes in to fill that gap, not necessarily competing with them, but complimenting them so that we can create wealth for our people. Lastly, we shall prioritize improving our management of natural disasters and fulfilling regional and international commitments.

How do you envision these strategies and priorities impacting Uganda’s future?

These strategies and priorities are designed to position Uganda as a major player in the global economy. By focusing on sustainable growth, investing in key sectors, and improving infrastructure and regulatory frameworks, we aim to create a more resilient and prosperous economy. Our vision is to see Uganda emerge as a leader in agro-industrialization, tourism, and technological innovation - driving substantial economic growth and improving the quality of life for all Ugandans.

I would like to reassure all stakeholders and the public that we are on a promising path. The Government is committed to implementing these strategies effectively and working collaboratively with all partners.

We have a clear vision for Uganda’s economic future, and with continued support and engagement, we are confident that we can achieve our ambitious goals and build a brighter and more prosperous future for our nation.