President Yoweri Museveni made a bold prediction that Uganda's economy will reach $500 billion before 2040. Speaking at the unveiling of the 2024/2025 national budget, which totals UGX 72 trillion,
Museveni highlighted the significant growth the Ugandan economy has experienced since he took office.
"Our GDP has grown from $1.5 billion in 1986 to $55 billion by the exchange rate method and to $180 billion by the PPP method," Museveni stated.
"Our GDP is now two times the size of the South African economy when Mzee Mandela took over in 1994. In the next few years, not the 2040 vision, we shall catapult the economy to the size of $500 billion."
Museveni attributed this projected growth to strategic value addition in key sectors.
"By adding value to coffee, maize, forest products, minerals, etc., our economy will grow exponentially. We have the electricity, and we shall continue expanding the generation and transmission. The private sector is the main engine of growth and transformation," he emphasized.
During the budget presentation, Finance Minister Matia Kasaija announced a substantial allocation of UGX 1.059 trillion for the Parish Development Model (PDM), aimed at uplifting household incomes nation
This translates to an additional UGX 100 million for each parish in Uganda.
"Country men and women under this category, take full advantage of the PDM and other wealth creation funds as well as other support services to join the money economy in any of the four sectors – commercial agriculture, industry, services, or ICT," Kasaija urged.
To date, UGX 2.4 trillion has been allocated to the PDM, directly benefiting 10,585 parishes across the country. Kasaija highlighted the introduction of the WENDI Application by Post Bank and its partners, which has eased the process for beneficiaries to access funds without traveling long distances to open bank accounts or withdraw money.
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The optimistic outlook for Uganda's economic future comes amid broader efforts to harness and expand its economic potential through infrastructure development, energy projects, and industrial growth.
President Museveni's administration has consistently emphasized the role of the private sector in driving economic transformation.
Analysts believe that if the government continues to implement policies that support value addition and infrastructure development, Uganda's economic trajectory could indeed see such significant growth.
However, they also caution that achieving a $500 billion economy will require sustained effort and addressing challenges such as corruption, bureaucracy, and ensuring political stability.
Museveni's vision for Uganda’s economic future reflects an ambitious and forward-thinking strategy aimed at transforming the nation into a middle-income country within the next two decades.
As the government rolls out the 2024/2025 budget, all eyes will be on how these financial allocations and policies translate into tangible economic growth and improved livelihoods for Ugandans.
