In a landmark address during the annual budget reading, President Yoweri Museveni laid out a bold vision for Uganda’s economic future, projecting a dramatic growth trajectory that aims to catapult the nation’s GDP to USD 500 billion in the coming years.
Speaking before Members of Parliament, Ministers and other government leaders at Kololo independence grounds on Thursday, Gen Museveni reflected on the remarkable growth Uganda has experienced since 1986 when the GDP was a mere USD 1.5 billion. Today, by the exchange rate method, the GDP stands at USD 55 billion, but using the Purchasing Power Parity (PPP) method, it reaches an impressive USD 180 billion.
“The exchange rate method undervalues our economy because we import many items that we can produce ourselves,” Museveni explained. “By focusing on adding value to our raw materials—like coffee, maize, forest products, and minerals—we can elevate our economy exponentially.”
Museveni compared Uganda’s current economic status with South Africa’s in 1994, highlighting that Uganda’s GDP by PPP is now twice the size of South Africa’s economy when Nelson Mandela took office. “I tell you, we are on the path to a USD 500 billion economy, not by 2040, but in a few short years,” he asserted confidently.
The President emphasized the critical role of the private sector in driving growth and transformation, supported by a well-educated and innovative population. To compete globally, Museveni stressed the importance of producing affordable and high-quality products and services.
Key to this competitiveness is affordable electricity, which is already being addressed, and low-cost capital for wealth creators, available through initiatives like the Parish Development Model (PDM), Emyooga, and Uganda Development Bank (UDB) loans.
Highlighting the need for efficient transportation, Museveni announced plans to reactivate rail and water transport for cargo. “We have repaired the old metre-gauge railway from Malaba to Kampala and from Tororo to Gulu-Pakwach. Soon, we will start building the Standard Gauge Railway (SGR) from Malaba to Kampala and Kampala to Mpondwe, eventually expanding it to Gulu-Nimule,” he said. “This railway will enhance our wealth creation capacity, protect our roads from heavy truck damage, reduce pollution, and save fuel.”
In addition to modernizing transportation, Museveni shared plans for introducing electric cars and electric boda-bodas. He also stressed the importance of irrigation for agriculture as a strategic intervention to stabilize the economy permanently.
Museveni highlighted the imminent revenue from Uganda’s petroleum reserves, predicting an additional USD 2 billion annually for the government. “This oil money will be earmarked exclusively for infrastructure and scientific development, funding essential projects like the railway and irrigation,” he said.
Addressing critics who doubt his vision, Museveni declared, “Some people talk of poverty and unemployment because they don’t listen to our message. The four sectors—Commercial Agriculture, Artisanship and Manufacturing, Services, and ICT—if utilized as the NRM has recommended since 1995, will generate jobs beyond our expectations. We already have nearly a million people in manufacturing and over five million in services. This is just the beginning.”
Gen Museveni concluded with a rallying call to all Ugandans. “Therefore, Ugandans, wake up. Work. The capital to help you enter any of these sectors is already available. Together, we will build a prosperous, self-reliant Uganda.”
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