today's Pick
Economy to hit sh70 trillion by 2015, says MuseveniPublish Date: Feb 11, 2014
Economy to hit sh70 trillion by 2015, says Museveni
  • mail
  • img
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
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
Makerere agrees to clear staff allowances
Makerere University has agreed to pay staff allowance arrears for the month of May, amounting to sh3.7b....
Govt to pay all salary arrears by September
THE Secretary to the treasury Keith Muhakanizi has promised that all salary arrears for civil servants will be paid by September...
URA to collect tax on rented houses, properties
Uganda Revenue Authority has revealed that it will soon begin collecting tax on all rental houses and properties within urban areas....
Doctors remove 232 teeth from boy
Doctors in a hospital in India have removed as many as 232 teeth from the mouth of a 17-year-old boy....
Executed man
A death row inmate being executed in Arizona took nearly two hours to die, prison officials said Wednesday....
S.Sudan rebel bid for UPDF pull out fails
South Sudanese rebels who travelled to Uganda pleading for Kampala to pull troops out of the war-torn nation left without meeting officials, the foreign minister said....
Should government review powers of kings?
Yes
No
Can't Say
follow us
subscribe to our news letter