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Ugandan President Yoweri Museveni provided perhaps his most positive view of the country's economy yet, projecting it to grow at a rate of 6.5% to 7% per year over the next five years, relying on manufacturing, increased oil and gas activity, and export growth, all of which are dependent on rebounds of regional and international markets, low inflation, and assistance for small businesses.
By the conclusion of the 2023–24 fiscal year, this will increase the nation's GDP from its current level of $49.4 billion to $55.2 billion, or $156.76 billion in purchasing power parity, and raise the GDP per person to $1,186 from the present level of $1,096.
The World Bank stated in December of last year that the East African country is returning to its pre-pandemic trajectory of growth, with economic recovery bolstered by the strong performance of the services and industrial sectors, buoyant private consumption, and an increase in private investment. This is despite the slow recovery of some key sectors from the Covid-19 effect, such as tourism.
The president of the country is still certain that by using the country's abundant resources and enhancing the value of minerals and high-value agricultural goods like coffee, Uganda's GDP would grow tenfold, from $55 billion to $550 billion, in the near future.
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“Why? It is because, apart from the said raw materials that are already in place, all the other factors are there. These are an educated workforce, electricity, a better road network, the railway we are about to start building and the old line we are repairing, piped water, telephone lines, the internet,” the president stated.
Prior to the Covid-19 epidemic, tourism was regularly the nation's top source of foreign exchange earnings; it is anticipated that by 2025, tourism will have fully recovered. Last year, amid the lockdown, international visitor visits increased to 815,000 from 473,000 in 2020.
Data from the industry indicates a rebound, although performance is still below the 1.543 million tourists recorded in 2019. Leisure and vacation travelers spent $172 per night in 2022 compared to $168 in 2019, stayed longer (11 nights) than in 2019, and remained for longer (7.6 nights) in 2022.
Mr. Museveni said that in 2022, Uganda's national parks welcomed 367,869 tourists, above the 323,861 visitors recorded prior to the year 2019.
The Parish Development Model (PDM), a revolving wealth creation fund that the President promoted before the election as the solution to raising household incomes, is still ineffective, and in the two years after it was put into place, there have been no widespread successes to note.
However, Mr. Museveni claims that in the year ending in December 2022, 60% of families had a gain in income, compared to 43% during the same period last year, demonstrating the success of the government's efforts to boost wealth at the household level.
The PDM is an annual payout from the government of Ush100 million ($26,627) to each registered recipient parish savings and credit cooperative.
“This is the strategy of PDM, the money is there, cheap and the parish is near. Therefore, no more excuses by the people who want to remain in poverty,” Mr Museveni said.