Uganda valued at $25b, projected growth 5.8%

By Apollo Mubiru & David Lumu

KAMPALA - Uganda’s economy is projected to grow at 5.8% in 2015/16 fiscal year compared to 5.3% this financial year, finance minister Matia Kasaija has said.

Presenting the 2015/16 financial year budget to Parliament presided over by Speaker Rebecca Kadaga; Kasaija attributed the projected growth to the recovery in private sector consumption, as well as acceleration in both public and private investment.

The theme of this year’s budget is: ‘Maintaining infrastructure investment and promoting excellence in public service delivery. This is Kasaija’s maiden budget speech.

President Yoweri Museveni accompaned by the First Lady Janet arrive for budget presentation at Serena. (Credit: Enock Kakande)


“The medium term outlook for our economy is bright, with real Gross Domestic Product expected to continue its recovery path to an average of 6.5% in the next 5 years. This growth will be driven by increase in public investment in infrastructure, and a sustained rebound in private sector activities. Consumer prices increases are expected to remain within the 5%policy target,” the minister submitted.

According to the minister, growth in the agriculture, forestry and fishing sectors combined is projected at 2.3%; while the industrial sector is projected to grow at 5.5%, and services at 5.7%.

“The recent re-assessment has shown that our economy is 17% larger than previously estimated, and it is now valued at sh75.183 Trillion, which is approximately $ 25b,” the minister submitted.  

Kasaija attributed to more diversification that has led to new activities which were previously not captured in the national accounts.

In the agricultural sector, he said, cash crops rebounded strongly from an average negative growth of 1.5% per year for the last five years to a positive growth of 6.6% in this year.

He added that growth in manufacturing has picked pace and is now estimated at 4.1%.

Construction has continued to be a major driver of growth in the industrial sector and is estimated to expand by 6.6%.

Information and Telecommunications has contributed significantly to services sector growth, which has continued to register high growth rates estimated at 10.2%, he said.

The minister said the total export revenue for the period April 2014 to March 2015 were estimated at $ 2,701.6m, compared to imports of $ 5,048.9m over the same period.

Kasaija explained that the surge in import demand was inevitable, given an increase in infrastructure investments in oil, the road network and Karuma and Isimba Hydropower projects.