Uganda's economic growth set to double - Museveni

By Steven Candia

PRESIDENT Yoweri Museveni has said he expects the country's economic growth rate to more than double following the discovery of oil and gas.

Museveni voiced his optimism at a joint press conference at State House Entebbe, also addressed by Togolese president Faure Gnassingbe who ended his four day state visit yesterday.

He said the combination of the two should be able to spur economic growth immensely, reversing the slow economic growth rate, currently at 5.5 percent.

“We are fortunate to have found oil and gas. Our rate of growth is going to be much higher,” Museveni said while responding to a question. He said with the discovery of the two, the coming into operation of Bujagali at the end of the month upon its completion and a projected bumper crop harvest, the nation’s economic growth rate should more than double.

“We should be able to achieve 12, 13 or 15 percent economic growth rate he said. The country’s initial growth rate of an average of 8.3 percent per year, he said, had taken a knock from the current global economic crisis, plummeting to 5.5 percent.

But he also blamed the current low economic growth rate on what he termed as past mistakes, mainly of delaying electricity projects.  “Some of these electricity projects we undertaking now should have been ready 10 years ago but because of the confusion in the political class, the civil servants and to some extent outside friends the projects delayed,” Museveni said.

But he said the completion of Bujagali should be able to fire up growth in crucial sectors that require electricity and the nation out of the bumper crop harvest should be able to tap from its unique position as a regional food basket. 

He said with Bujagali expected to come into operation after its completion by the end of this month and foreseeable bumper harvest in the country which is a food basket for the region, the economic growth rate could more than double.

“The problem of Africa is lack of concepts but not resources,” Museveni said adding that with the correct policies now in place and the requisite infrastructure in place, greater economic growth is achievable even by Togo, which he said has immense potential. He hailed the Togo president as a serious man.

Faure said sound economic strategy was necessary for economic growth adding that Togo had had a troubled history which had slowed its growth. At the function the two countries signed a joint communiqué in which they agreed to establish full diplomatic relations to strengthen cooperation between the two countries.

The communiqué read by the Minister of ICT holding the portfolio of the ministry of Foreign Affairs Dr. Ruhakana Rugunda, the two leaders expressed satisfaction with the existing fraternal relations between Uganda and Togo but emphasized the need and determination to further concretize and expand cooperation in the political diplomatic, economic and social fields.