KAMPALA, Uganda — Uganda’s drive to become a modern, prosperous nation by 2040 is gaining momentum, according to the country’s top financial official, with recent figures showing a significant drop in national poverty rates.
Permanent Secretary for the Ministry of Finance, Ramathan Ggoobi, stated that the proportion of Ugandans living in poverty has fallen sharply from 20.3% in 2019/2020 to 16.1% in 2023/2024. This welcome news, announced as the country celebrates its independence, signals that millions have seen improvements in their livelihoods.
Mr. Ggoobi credited the positive shift to higher productivity in two key areas:
- Agriculture: Improved incomes in the farm sector, bolstered by the government’s flagship Parish Development Model (PDM), irrigation, and better extension services.
- Industry: Strategic investments in industrial parks, free zones, and infrastructure have created new opportunities. The government has also made affordable credit available to manufacturers via the Uganda Development Bank.
Oil and Gas: The Next Big Leap
The future of Uganda’s economy, however, is heavily tied to its natural resources. The permanent secretary noted that the oil and gas sector is expected to become a major economic accelerator, creating extensive “backward and forward linkages” with other sectors, including construction and tourism, and generating much-needed foreign exchange.
This resource wealth forms a core component of the country’s ambitious Tenfold Growth Strategy, which aims to expand the economy dramatically through:
- Agro-industrialisation
- Tourism development
- Mineral development
- Science, Technology, and Innovation
Empowering the Ugandan Investor
Ggoobi stressed that for this growth to be inclusive, local businesses must be central to the plan.
The government has adopted specific measures to empower Ugandan entrepreneurs, including the Local Content Policy, which ensures local firms benefit directly from major projects in the oil, gas, and construction sectors.
Support is also provided through:
- Affordable Credit: Access to financing via institutions like the Uganda Development Bank and the Small Business Recovery Fund.
- Capacity Building: Programmes like Enterprise Uganda offer vital training, mentorship, and financial literacy to enhance the competitiveness of local firms.
By ensuring peace, security, and sustained investment in infrastructure and human capital, the government is working to create an environment where local investors can thrive alongside foreign enterprises.
Uganda’s challenge now is to expand its markets through deeper regional integration and trade agreements, ensuring its vibrant business community complies with regional standards to export more goods and attract the necessary Foreign Direct Investment (FDI) to achieve its vision of prosperity by 2040.
