today's Pick
Economy to hit sh70 trillion by 2015, says Museveni
Publish Date: Feb 11, 2014
Economy to hit sh70 trillion by 2015, says Museveni
President Yoweri Kaguta Museveni with the Prime Minister Amama Mbabazi and other NRM members during the opening ceremony of the members at National Leadership Institute in Kyankwanzi.PHOTO: Abu Mwesigwa
  • mail
  • img
newvision

By Mary Karugaba and David Lumu

Uganda’s economy continues to soar and by the end of the 2014/15 financial year, economists have predicted that it will have hit $28b (about sh70 trillion).


Addressing NRM legislators at the National Leadership Institute in Kyankwanzi, President Yoweri Museveni noted that as a result of tackling market challenges and more exporting opportunities, the economy is bound to grow.

Museveni made the remarks while opening the NRM 10-day retreat, where the executive and the party MPs will discuss the rising bank interest rates, corruption and the 2016 party manifesto.

The President noted that in the last 28 years Uganda has expanded 16 times, from GDP of $1.5b to $24b today.

“By the end of the 2014/15 financial year, our economy will be $28b. The size of the GDP depends on the foreign exchange rate. When the Uganda shilling appreciates, as it is bound to when we start oil and other minerals minning, the size of the GDP will rapidly grow,” the President said.

Museveni further predicted that with more value added to agricultural products, there will be more dollars earned, thereby making the dollars more abundant and therefore cheaper in terms of shillings.

“With more dollars, you will need to spend fewer shillings to buy one dollar. Uganda shilling will become more expensive (appreciate),” he said.

Quoting the Bank of Uganda deputy governor, Dr. Louis Kasekende, Museveni noted that due to the expanded market, South Sudan alone was contributing $450m through exports and $250m through remittances from Ugandans working in the country per annum before the war broke out.

This is in addition to $1623m from Kenya, Burundi, Congo and Egypt, a figure higher than what the country receives in foreign aid. Uganda currently receives $ 1,043m in foreign aid annually.

“Therefore, regional integration has been a success. The East African Community had collapsed when we came to power. We slowly revived it. We are also continuing to work hard for the realisation of the East African Federation so as to be able to deal with the strategic aspects,” Museveni said.

“The markets are in place, not forgetting the external ones we have negotiated such as AGOA . The infrastructure is being worked on and we are not going to relent. What, then, has remained undone or not sufficiently done?” he asked.

The President applauded the MPs for supporting his proposal to inject more money into infrastructure and energy. He said if the Government could also work on the railway, the problems of transport would be reduced and the costs of doing business in Uganda will go down.

Museveni noted that infrastructure is crucial for industrialisation and the competitiveness of the country’s industrial products.

“We are finally on the right truck. What we need is address now are issues of entrepreneurship such as capital and knowledge, and to create a corrupt free environment for our investors,” he said.

The President pointed out that foreign investors need peace, good infrastructure and the ease with which they can come into the economy “without undue delays and corruption by parasites getting money or shares from them”.


Uganda’s economy continues to soar and by the end of the 2014/15 financial year, economists have predicted that it will have hit $28b (about sh70 trillion).

Addressing NRM legislators at the National Leadership Institute in Kyankwanzi, President Yoweri Museveni noted that as a result of tackling market challenges, and more exporting opportunities coming on board, the economy is bound to grow.

Museveni made the remarks over the weekend while opening the NRM 10-day retreat, where the executive and the party MPs will discuss the rising bank interest rates, corruption and the 2016 party manifesto.

The President noted that in the last 28 years Uganda has expanded 16 times, from GDP of $1.5b to $24b today.

“By the end of the 2014/15 financial year, our economy will be $28b. The size of the GDP depends on the foreign exchange rate. When the Uganda shilling appreciates, as it is bound to when we start mining oil and other minerals, the size of the GDP will rapidly grow,” the President said.

The President further predicted that with more value added to agricultural products, there will be more dollars earned, thereby making the dollars more abundant and, therefore, cheaper in terms of shillings.

“With more dollars, you will need to spend fewer shillings to buy one dollar. Thereby, the Uganda shilling will become more expensive (appreciate),” he said.

Quoting the Bank of Uganda deputy governor, Dr. Louis Kasekende, Museveni noted due to the expanded market, South Sudan alone was contributing $450m through exports and $250m through remittances from Ugandans working in the country per annum before the war broke out.

This is in addition to $1623m from Kenya, Burundi, Congo and Egypt, a figure higher than what the country receives in foreign aid. Uganda currently receives $ 1,043m in foreign aid annually.

“Therefore, regional integration has been a success. The East African Community had collapsed when we came to power. We slowly revived it. We are also continuing to work hard for the realisation of the East African Federation so as to be able to deal with the strategic aspects,” Museveni said.

“The markets are in place, not forgetting the external ones we have negotiated such as Agoa. The infrastructure is being worked on and we are not going to relent. What, then, has remained undone or not sufficiently done?” he asked.

The President applauded the MPs for supporting his proposal to inject more money into infrastructure and energy. He said if the Government could also work on the railway, the problems of transport would be reduced and the costs of doing business in Uganda will go down.

Museveni noted that infrastructure is crucial for industrialisation and the competitiveness of the country’s industrial products.

“We are finally on the right truck. What we need is address now are issues of entrepreneurship such as capital and knowledge, and to create a corrupt free environment for our investors,” he said.

The President pointed out that foreign investors need peace, good infrastructure and the ease with which they can come into the economy “without undue delays and corruption by parasites getting money or shares from them”.
 
 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
President Yoweri Museveni has warned that if corruption in Uganda goes unchecked and unpunished, it would pose a serious threat to the country....
More Ugandan doctors for Ebola fight
Another team of 12 Ugandan medics has arrived in Liberia to boost the emergency response to the Ebola epidemic....
At least 11 people have died and several others have been injured during a stampede at a church service in the Zimbabwean mining town of Kwekwe....
Around the world in 21 pictures
Get in touch with what is going on around the world through the lens of a camera....
Tapeworm lives in man
Scientists in Britain removed and studied a rare tapeworm that lived in a man''s brain for four years, researchers said on Friday....
Details of Barack Obama
US President Barack Obama took executive action on Thursday to lift the threat of deportation for some five million people....
Should workers be subjected to a 4% Health Insurance Tax??
Yes
No
Can't Say
follow us
subscribe to our news letter