The Ugandan economy is valued at just over $25 billion. In companies ranking by sales revenue Uganda would probably compare to British American Tobacco in the UK or Samsung, Life Insurance in South Korea, so albeit it is growing, it would be from a low base. According to the IMF report on the economic development and outlook for Uganda in May of 2015, the Ugandan economic outlook is assessed in close comparison with regional and global projections.
Key factors include global growth projection of 3.8 per cent while Uganda is poised to grow at over 5 per cent, Uganda belongs to the sub Saharan African regional block and has been growing generally above the block’s average since 2006 save for the financial down turn in 2012, Uganda is also experiencing exponential growth in global working age population.
But perhaps the best justification for a positive economic outlook this year would be more medium term prospects closer to home according to the Budget speech of the financial year 2015/16 by Matia Kasaija. Domestic revenue is expected to grow by 13 per cent freeing up external revenue for much bigger projects.
The Oil sector legal and management framework has been finalised hence the sector is poised to take off. Statutory expenditure is set to double.
Development expenditure is set to increase by 58 per cent due to large infrastructure projects like the refurbishment of Entebbe airport, construction of the express highway, completion of the Northern Bypass, construction of Isimba and Karuma hydro projects, Increase in private sector enterprise, Increase in government business through the Uganda Development corporation, regional markets and integration etc.
With the risks of the political threat slowly diminishing, Uganda is definitely at takeoff and by far the best time to invest into the economy.
For more information please contact, lifeadvisor@uap.co.ug, The writer is the Corporate Sales Manager for UAPLife Insurance.
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