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The Ministry of Finance has projected that Uganda’s economy will grow tenfold by the close of the next decade.
Ramadhan Ggoobi, the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance (PSST), made the disclosure on Tuesday while delivering the economic performance and expenditure projections for the 2024/25 Financial Year.
During his speech, Ggoobi said the government set a clear target for Uganda to achieve a $500 billion economy by 2040.
This target, according to Ggoobi, is not just a distant dream but an achievable goal that will require careful planning, sustained efforts, and the right economic foundations.
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The Path to a $500 Billion Economy
"We are now at $50 billion, but we want to get to $500 billion, and we shall do it in our generation while we are still alive; even by 2040," he stated confidently.
The PSST noted that reaching this milestone would lead to the creation of more wealth in the country, with a growing number of millionaires and, eventually, billionaires.
However, Ggoobi said there is a need first to focus on the macroeconomic fundamentals to ensure the country’s long-term growth and stability.
He argued that for Uganda to see billionaires emerge, it must fix its economic fundamentals.
“You cannot have ultra-rich people in a badly managed economy. You need to first make the economy grow,” he said.
He added that Ugandans need to focus on the right sectors in the economy to drive wealth.
"We need to start questioning what we are doing differently from what others have done before for us to make more money," he remarked.
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Strong Economic Performance in 2024
Ggoobi provided an overview of the country's current economic performance, highlighting the positive trends in growth.
The economy is projected to grow at an average rate of 6.4% in the 2024/25 financial year, supported by foreign direct investment (FDI) inflows, particularly in the oil and gas sector, as well as offshore investments and export receipts.
The fiscal outlook is equally optimistic, with domestic revenue expected to meet 100% of the target.
In terms of growth, Uganda’s GDP increased by 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.
This growth is largely attributed to the booming manufacturing sector, food production, wholesale trade, and transport activities.
Foreign Investment and Export Growth
Foreign direct investment (FDI) has played a pivotal role in Uganda’s economic expansion. In Q2 of FY 2024/25, FDI grew by 20.6%, contributing significantly to the economy’s robust performance.
Additionally, Uganda’s export value surged, reaching USD 2.17 billion in Q2 FY 2024/25, a 12.1% increase from the previous year. Remittances also saw a steady rise, reaching USD 355.6 million in the same period.
The performance of Uganda’s currency, the Ugandan shilling, was another highlight.
The shilling gained 6.1% in 2024, making it the best-performing currency in Africa.