By Benjamin Mwibo

The Ministry of Finance has outlined a strategy to grow Uganda’s economy from USD 50 billion to USD 500 billion by 2040 during the 18th high level economic growth forum with stakeholders in kampala.

The two days forum seeks to transform challenges into opportunities for development under the theme, “Seizing Opportunities for Structural Transformation to Increase Productivity and Resilience.” And also focuses on urbanization, transforming subsistence farming into urban growth, where structural transformation involves creating more productive jobs in the rural sector and in cities which are centers of growth in the emerging economies.

Another focus of the forum is to discuss the issue of developing high productivity services, tourism and business services which are crucial for structural transformation, foster economic diversification, knowledge transfer and technological progress.

According to the Permanent Secretary and Secretary to the Treasurer (PSST) Mr. Ramathan Ggoobi, addressing the forum, “ despite facing global challenges such as tighter financial conditions and supply chain disruptions, Uganda’s economy demonstrated impressive resilience by achieving a growth rate of 6.0% in FY 2023/24. This performance significantly surpasses the Sub-Saharan Africa average of 3.8% projected for 2024 and the global average of 3.2%.”

However, Uganda’s strong economic growth has been driven by infrastructure development, investment in human capital development, deliberate government programs for agriculture and agro-industrialization such as the Parish Development Model (PDM) and a conducive macroeconomic environment. This growth has also been significantly supported by post COVID recovery interventions that increased government expenditure towards social services and business recovery, thereby boosting investment and demand for locally produced goods, he said on Thursday.

The ministry, to achieve the goal by 2040, is targeting four key sectors, such as Agro-industrialization, Tourism, Mineral development (including oil and gas), and Science, Technology, and Innovation (STI), including ICT, (ATMS). The plan aims to double GDP every 5 years, raise per capita GDP from USD 1,146 to USD 7,000 by FY 2039/40, increase savings from 20% to 40% of GDP by 2040, raise the share of exports in GDP from 12% to 50% and increase annual FDI inflows from USD 2.9 billion in 2022 to USD 50 billion by 2040., noted Ggoobi.

Dr.Nhial Kuch, the International Growth Centre (IGC) Senior Country Economist, mentioned while presenting, on increasing public investment to drive growth, that the public investment boosts economic growth,productivity and public welfare.

The strategies to leverage investment finance include public private partnerships, attracting foreign direct investment,developing and deepening capital markets, strengthening institutional frameworks, leveraging international finance institutions and promoting green finance.

Other stakeholders like the Commissioner Macroeconomic Policy Dr.Albert Musisi discussed the opportunities to accelerate growth and structural transformation of Uganda’s economy.

Citing the need to increase both actual and potential real GDP growth more than the level achieved last year of 6%, adding that new sources of growth must be found and there must be improvements in productive capacity of the economy to achieve higher growth potential.