Uganda expects growth to rebound to 4.5pc in fiscal 2021/22

May 18, 2022 in Business, Finance, Financial Services, Investment, Markets, Policy by Editor

Uganda expects growth to max out at 4.5pc in the full year to June 2022, shored up by the full reopening of the economy and a resurgent oil and gas sector. The numbers were revealed by Finance Minister Matia Kasaija May  17, during the launch of this years edition of the National Budget Month.

Growth was trending at 3.8pc at the half-year point in December Kasaija said adding that full-year growth was projected at between 3.8 and 4.5pc. “Despite the economic recess occasioned by the Covid 19 pandemic, the economy continues to show signs of recovery following the easing of the lock down. As at half year, our economic growth was at 3.8pc. The economy is projected to grow at between 3.8pc to 4.5pc compared to 3.4pc by the end of fiscal 2020/21,”  he revealed.

Uganda reopened the economy fully in January while following the conclusion of bilateral agreements between Uganda and Tanzania, oil majors Total energies and CNOOC, in February announced a final investment decision for the East African Crude Oil Pipeline EACOP. The announcements have unlocked investment in the upstream of Uganda’s oil and gas sector, improving economic prospects. Some estimates put upstream investment in Uganda between USD 10 and 14  billion.

The budget month that kicked  off May 10 and will run until June 9, just days before the simultaneous unveiling of fiscal 2022/23 budgets by the region’s finance ministers; is the Uganda governments tool for engagement with citizens on budget performance and priorities.

The coming budget will run under the theme, ‘Full Monetization of the Ugandan economy through commercial agriculture, industrialization, expanding and broadening services and digital transformation and market access’. Kasaija said it would aim at achieving the three broad objectives of peace and stability through enhanced security, macroeconomic stability, as key foundations for growth and development; mitigation of the impact of the COVID19 pandemic through widespread vaccination, support to businesses, and  enhancement of socio-economic transformation by redirecting  budgetary resources towards wealth and job creation, industrialization, export promotion and other areas with high returns on investment.