The Ministry of Finance Permanent Secretary and Secretary to Treasury, Ramathan Ggoobi, has said that the journey to build a USD 500 billion economy by 2040 will come with several things that must be done in the right way.
The strategy is anchored on agro-industrialization, tourism, mineral development, and science and technology innovation (ATMS) to accelerate growth
“It’s a very beautiful dream where we have molded by changing certain things; we shall be able to actually get there. That acronym ATMS was deliberately crafted to work on our mental that we are going as a country to invest in certain things for us to draw bigger things in future, when we agree that these are priorities and then ourselves, we want to put ourselves in other things, away from those agreed, that’s the indiscipline we want to work on. How do we team up and get the consensus that this is what we want to do?” said Ggoobi.
He said this during Absa 2025 Post Budget Dialogue at Kampala Serena Hotel on 13th June 2025. The PSST emphasised that the country needs to build consensus while implementing the planned things correctly, at the right time.
“Secondly, in Uganda, we must build that discipline of consensus; that discipline of getting teams to work; people knowing that you are nothing without others; some people think that they are more important than others. At the national level, we have a big problem of consensus; we say that we are doing this, but the following day, you see people doing other things.”
Skilling will be key
Uganda’s labour market faces a mismatch between the skills of its workforce and the needs of employers, despite a growing economy. Uganda Bureau of Statistics (UBOS) and other reports highlight the challenges in aligning education with market demands and the need for more vocational and technical training
Research indicates a significant disconnect between educational outcomes and market needs, with 30% of graduates working in jobs unaligned with their qualifications. The 2021 National Labour Force Survey reported a 12% unemployment rate and a 44% labor underutilization rate
Speaking about skilling, Ggoobi said that there’s no country that has transformed with so many people who are unemployable. He explained that many of young people in Uganda are not only unemployed but also unemployable; we need to ensure that we invest in those critical areas which are demanded by the market.
“Let’s use the industry to determine which kind of skills we need to digitize and innovate.”
Opportunities in FY 2025/26 National Budget
Michael Segwaya, the Executive Director/Chief Finance Officer at Absa Bank, said the UGX 72.37Trillion Budget for Financial Year 2025/26 has provided UGX 1.4Trillion to clear domestic arrears, away from the last financial year’s UGX 200b, and this will provide liquidity for businesses.
“This is a good gesture, but looking at the balance sheet, we should be doing more for years to come to try and support the business community because it eases the cost of doing business, and this also helps the Government,” he stated.
Allan Allan Ssenyondwa – Economist, Policy and Advocacy Manager at Uganda Manufacturers Association (UMA) said the budgetary allocation towards domestic arrears will provide liquidity to businesses.
“To hear that there’s a UGX 1.4Trillion coming, this is a huge welcome to the manufacturing. In the manufacturing world, the leading issue that we have is financing. The second challenge that we have is the effective demand. So, we are watching clearly what PDM is doing because unless Ugandans have money in their pockets, Ugandans don’t have money in their pockets, they won’t buy goods you produce.
Garry Kizito, the Assistant Commissioner Compliance at Uganda Revenue Authority (URA) said the Government in the next financial year has put in measures to address bottlenecks to business growth, including formalisation.
“For example, the income tax exemption has been introduced starting from July for start-ups. We are aware that Uganda is one of the most highly entrepreneurial countries in the world, but the majority of those businesses don’t see their first anniversary, partially because of informality. So our citizens of Uganda, come 1st July, open up a business with an investment capital that doesn’t exceed UGX 500m, you will be entitled to income tax exemption for three years,” he stated.
The Absa Bank Managing Director, David Wandera, said budgets must ultimately translate into impact, in jobs created, arrears cleared, and opportunities unlocked for households and entrepreneurs alike.
He highlighted the role of financial institutions in translating fiscal policy into real economic outcomes by funding agriculture, trade, and SMEs, and enabling business resilience beyond capital.
