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President Yoweri Museveni has dismissed Western trade barriers and external pressures, following recent positive projections for Uganda’s economic growth.
Speaking at the 11th session of the Africa Regional Forum on Sustainable Development at Speke Resort Munyonyo, Museveni laughed off the recent international criticism and sanctions, which were initially were feared could cripple the economy.
He cited the example of last year’s expulsion of Uganda from the African Growth and Opportunity Act (AGOA) by President Joe Biden after the passing of the Anti-homosexuality law.
“Recently, we passed a law discouraging homosexuality here. Then Mr Biden removed us from the AGOA list. He chased us. Then the World Bank stopped giving us loans, but our economy grew by 6 percent.”
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The President noted that Western actions have attempted to isolate Uganda on the global stage, yet the national economy continues to soar.
“We are not bothered by all of that. What is crucial, besides fixing our own mistakes, is regional integration,” he emphasised.
According to Museveni, the key to Uganda’s continued growth lies in focusing on internal reforms and fostering stronger regional integration. He argued that if Uganda avoided internal mistakes and strengthened its regional market, external challenges would not pose a significant threat.
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Impressive Economic Growth and Optimistic Fiscal Outlook
Uganda's economy has indeed displayed remarkable resilience, as highlighted by Ramadhan Ggoobi, the Permanent Secretary to the Ministry of Finance.
Ggoobi outlined Uganda’s projected economic growth of 6.4% for the 2024/25 financial year, supported by substantial foreign direct investment (FDI), particularly in the oil and gas sector.
In addition, offshore investments and a surge in export receipts are expected to continue contributing to the country's positive growth trajectory.
The GDP growth of 6.7% in Q1 and 5.3% in Q2 of FY 2024/25, compared to 5.6% and 5.8% during the same periods in FY 2023/24, reflects a steady improvement.
The economy’s growth has been driven largely by the booming manufacturing sector, food production, wholesale trade, and transport activities, which have all seen significant expansion.
Foreign Investment, Export Growth, and Currency Strength
Foreign direct investment has been a key pillar in Uganda’s economic performance. FDI grew by 20.6% in Q2 of FY 2024/25, making a substantial contribution to the country’s robust performance.
Uganda's exports also surged, with the value reaching USD 2.17 billion in Q2 FY 2024/25, a 12.1% increase from the previous year. Additionally, remittances saw a steady rise, reaching USD 355.6 million in the same period, further bolstering Uganda’s economic growth.
The performance of Uganda’s currency, the Ugandan shilling, has also been a notable highlight. The shilling gained 6.1% in 2024, emerging as the best-performing currency in Africa. This success is a testament to Uganda’s growing economic strength, which President Museveni proudly pointed out during his address.