Uganda’s national budget for the financial year 2024/25 revealed a staggering public debt of 92 trillion shillings. Experts attribute this alarming figure to persistent issues of money laundering, which have placed Uganda on the gray list. This has led to higher interest rates on borrowing and deterred potential investors, posing a significant threat to the country’s economic growth.
According to Hon. Norbert Mao, the Minister for Justice and Constitutional Affairs, Uganda’s heavy reliance on borrowing continues to be a major concern. He emphasizes that the country must focus on attracting more Foreign Direct Investments (FDIs) to foster economic growth.
Hon. Norbert Mao – Minister for Justice and Constitutional Affairs: “We cannot continue appearing as a borrowing nation. It is imperative that we create an environment that attracts foreign investments because without it, economic growth will remain stagnant.”
To address these challenges, the Ministry of Foreign Affairs, in collaboration with the Uganda Registration Services Bureau (URSB), has held a meeting with a group of foreign diplomatic missions. The discussions have been centered on strategic initiatives to enhance Uganda’s business environment and boost investor confidence.
Hon. Oryem Henry Okello, the State Minister for Foreign Affairs, stressed the importance of attracting multinational companies to the Ugandan market as a means of strengthening the economy.
Hon. Oryem Henry Okello – State Minister for Foreign Affairs: “For Uganda to witness sustainable growth, we must actively seek big multinational companies to invest here. This will significantly enhance our economic landscape and create more jobs for our citizens.”
Meanwhile, Rt. Hon. Amb. Francis Butagira, the Chairperson of the URSB Board, revealed that digital transformation in business registration has significantly improved revenue collection, generating over 80 billion shillings. The move to online registration has simplified the process and encouraged compliance among business owners.
Rt. Hon. Amb. Francis Butagira – Chairperson, URSB Board: “The ease of doing business, especially with online registration, has greatly improved revenue collection. We are seeing more businesses formalize their operations, which contributes to our economic stability.”
Additionally, Mercy Kainobwisho, the Registrar General of URSB, has highlighted some of the key achievements made in business registration, which have bolstered the business environment and facilitated economic growth.
Mercy Kainobwisho – Registrar General, URSB: “Our focus has been to simplify business registration processes and make them accessible online. This has not only increased compliance but also boosted investor confidence, contributing significantly to our national revenue.”
As Uganda seeks to reduce its public debt and attract more foreign investment, strategic measures aimed at improving the business environment are essential. Authorities remain optimistic that these initiatives will foster economic growth and reduce the country’s dependence on borrowing.
BY NAOMI NAMUSOKE
