Uganda, Kololo | Real Muloodi News | The Ugandan economy has enjoyed a whopping 36.68% growth over the past five years. According to Edge, the Ugandan economy grew from USh.108.5 trillion (2016/17) to USh 148.3 trillion in June 2021.
During his budget speech, the Hon. Amos Lugoloobi, Minister of State for Planning and Finance, explained: “Economic growth for this financial year is projected at 3.3%, rising from 3.0%, a 10% increase over the previous financial year.”
Throughout his speech, Mr Lugoloobi identified specific areas of the economy where significant growth occurred including:
The industry sector has seen an increase from 26% to 27.4% in 2020/21. Some of the key highlights include:
- The manufacturing industry has diversified, introducing various new products to the market.
- The pharmaceutical industry saw an expansion in other parts of Africa, e.g., CIPLA Quality Chemicals Industries now expanding across West and Southern Africa.
- The steel industry has also seen expansion, with Roofings Limited becoming the leading sources of steel and plastic in east and central Africa.
- The mining industry contributed 2.3% in 20/21, an increase from 1.1% in 2016.
- Coffee production increased from 4.6 million 60 kg bags to 8.1 million bags in 2021.
- Strides noted in the scientific research and innovation area contribute significantly to economic growth. For example, the silk industry expects to earn Uganda USD 100 million annually. As well as creating 150,000 jobs by 2030. Other innovations recorded within the Kiira Automotive Industry and through the National Research and Innovation Program.
External Trade and Tourism continued despite the pandemic. Annual earnings from foreign exchange because of tourism increased from USD 1.35 million in 2015 to USD 1.6 million in 2018. Merchandise exports grew by 4.7% in 2021, and agricultural exports grew by 19%. The growth in agriculture helped reduce the merchandise trade deficit by USD 500 million in one year. Other key trade earnings in 2020 included:
- Coffee earned USD 497.4 million.
- Tea exports earned USD 71 million.
- Fish exports increased from USD 121 million to USD 227 million.
- Domestic investments increased by 13% in 2018, and foreign direct investments increased by 20% in 2019. An increase from USD 1.1 billion in 2018 to USD 1.3 billion in 2019.
- Uganda’s per capita income is also increasing, predicted to grow from USD 808 to USD 932 in 2021.
- The formal employment has increased by 17% between 2016/17 and 2019/20 as the PAYE register now has 1.5 million registered taxpayers, rising from 1.3 million.
- In the last year, 16750 individuals have secured employment in the Middle East, remitting approximately USD 9 million.
Economic Infrastructure has also seen significant developments like:
- Total national paved roads have increased from 3800 km in 2016 to 5400 km in 2021.
- 11 inland water vessels are now functional.
- Entebbe International Airport upgraded is 96% complete. Kabale and Hoima airports are also over 50% complete.
- Tororo-Gulu Meter Gauge Railway began works. Also, the government purchased two locomotives for the Ugandan railways.
- National electricity access now stands at 51%.
- Internet access is at 52%.
It is also important to note the advances achieved in human capital development in the last five years. Here are a few highlights:
- Life expectancy has increased from 44 years in 1998 to 63 in 2021.
- Literacy rates have improved by 76%.
- 270 teachers honed their skills in Early Childhood Development.
- 14350 teachers trained in psycho-social support to help those students affected by the pandemic.
- 117 seed secondary schools constructed.
- Safe water coverage is at 68% in rural areas and 71% in urban areas.
- National Water and Sewerage Corporation has added 49,000 new customers and expanded its water mains.
- 1506 public stand posts installed.
- Access to healthcare is now at 91% of the population. This metric is measured by the proportion of people within a 5 km radius of a health facility.
- The Entebbe Pediatric Surgery Hospital has completed construction, and the National and Regional Referral Hospitals have fully functional Intensive Care Unit beds and oxygen plants.
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