Kampala, Uganda – Finance Minister Matia Kasaija has delivered the budget speech for the financial year 2024/2025, themed “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”
“The economy has fully recovered from the various internal and external shocks that impacted performance in the past four years,” said Minister Kasaija. “GDP is projected to grow by 6.4-7% in the next financial year, surpassing Sub-Saharan Africa’s average of 3.8% and the global average of 2.9%. This growth will be driven by increased oil and gas activities, export growth, tourism development, agro-industrialisation, and science, technology, and innovation.”
The minister highlighted the government’s commitment to investing in healthcare, education, water, sanitation, and hygiene, with a budget allocation of Shs 10.216 trillion, representing 27% of the national budget.
“In the health sector, we have achieved significant milestones, including the construction of the East African Centre of Excellence for Cardiovascular care and the upgrade of 261 Health Centre IIs to Health Centre III status,” said Kasaija. “We have also distributed 25 million Long-lasting insecticide treated mosquito bed-nets countrywide for the prevention of malaria, and provided 116 new ambulances to 100 constituencies, 10 ambulances for the Regional Referral Hospitals, and six ambulances for the Command Centre at Naguru.”
In education, the government has prioritised skilling in Science, Technology, Engineering, and Mathematics (STEM), construction of laboratories, and upgrading learning facilities. “We have constructed and equipped 21 laboratories across the country, and upgraded learning facilities in 12 Technical Institutes and four Vocational Education Centres of Excellence,” said the minister.
The minister also emphasized the importance of social protection, with continued support for the Senior Citizens Grant, Youth Livelihood Programme, and Uganda Women’s Enterprise Programme. “We are committed to ensuring that our economy creates decent jobs for our citizens,” said Kasaija. “Our initiatives such as Emyooga and the Youth Livelihood Programme have created thousands of jobs and we will continue to support these initiatives.”
In the water and sanitation sector, the government aims to increase clean water coverage to 70% in rural areas and 85% in urban areas. “We have constructed 52 large solar-powered water supply systems in 19 districts, and completed the construction of 31 town water supply systems and sanitation facilities,” said the minister.
The minister acknowledged potential risks to economic growth, including climate change, geopolitical tensions, high interest rates, and global commodity price fluctuations, but assured that the government is taking measures to mitigate these risks. “We are implementing climate change adaptation measures, exploring cheaper sources of financing including climate finance, and ensuring frugality in Government expenditure,” said Kasaija.
Overall, the budget speech presents a positive outlook for Uganda’s economy, with a focus on sustainable growth, job creation, and fiscal consolidation. “Our goal is to propel Uganda to a 500-billion-dollar economy in the next one-and-a-half decades,” said the minister. “We are committed to creating a prosperous and inclusive economy that benefits all Ugandans.”
