Economy to hit sh70 trillion by 2015, says Museveni

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”.