Minister Musasizi Explains Finance Ministry ‘s Achievements in the NRM Manifesto Commitments

On November 4^th 2024, Hon. Henry Musasizi, Uganda’s State Minister of Finance , Planning ,and Economic  Development on behalf of his Ministry, took stock of the 2021-2024  NRM Manifesto  Implementation and Accounted  for the Ministry’s Commitments and achievements to the Citizens of Uganda.

While presenting a Special report on the status of Implementation of the 2021-2026 NRM Manifesto  Commitments Spearheaded by the Ministry of Finance at the Prime Minister’s office, the Minister said,Despiteof the several Global Economic shocks which included COVID 19 Pandemic and otherEnvironment Challengesduring the 2021-24 NRM Manifesto Implementation , Uganda’s economy has remained resilient  and is on a recovery path.

“Fellow Ugandans I must say, that Uganda’s economic outlook  is positive  and optimistic . As Government under the able leadership of our Visionary President  H.E. Gen. Yoweri  Kaguta Museveni, we have made giant steps in our endeavor to improve  the quality of life for all Ugandans . We have built a firm foundation  to steer the economy for social transformation  and economic take off into self- sustaining growth” He said.

The Minister explained that, apart from COVID 19 Pandemic , during the past four years  the country also  experienced  some other environmental challenges ,which included high inflation, fiscal constraints, Ebola, Drought and the impact of the Russian- Ukraine conflict but Government was able to manage the economy both internal and external.

He said ,the Uganda’s Domestic revenue has grown  to their  projection by 6 percent in the Financial year 2023-2024 compared  to 5.2 percent in the Financial year 2022-2023 and as a result of this robust growth , the size of the economy  is now estimated  at UGX 205 trillion (USD 55 Billion) up from  UGX 184.3 Trillion (USD 49.4 Billion in nominal terms.

Minister Musasizi explained that , the improved  performance  of the economy is on account  of higher growth  in all sectors , services, agricultural  and industry  estimated  at 6.4 percent, 4.7 percent and 6.0 percent respectively , in the Financial year  203-2024.

He attributed the factors that supported  the country’s economic growth to,  Low inflation and relatively  stable exchange rate  which have allowed good investment  planning  and supported  export competitiveness .

The other factors  to Uganda’s economic growth , he said were peace and security for persons and their Investment (FDI), the higher external demand  for Uganda’s  agricultural and industrial products and the recovery of tourism  supported by increased investment in tourism.

In terms of Employment the minister said ,most of the jobs in Uganda  are crated  in the informal sector  and recently  president  Museveni  established  the Presidential initiative on Jobs and Wealth Creation(EMYOOGA) and the direct beneficiaries were 2,237,402 Ugandans by December 2023 and had created 378,640 in direct jobs and so far over 1,164,698 households have received  PDM funds worth UGX 1.126 trillion 20^th May  2024.

According to Minister  Musasizi,  Government  is also boosting formal jobs  and related livelihoods  through a  number of project- funded interventions notable  among these is the GROW and INVITE projects.

The GROW program is expected  to directly benefit over 8,000female-owned enterprises, 280,000 female entrepreneurs  and 1.6 million indirect beneficiaries. Another 200,000 new jobs  are expected to be created  from new investments through  the Investment  for Industrial  Transformation  and Employment (INVITE).

To realize  the NRM  Party Manifesto Objectives , the  Government made several  commitments , with focus  on creating  more productive jobs through harnessing  all factors  of production and  among them, first was to accelerate  diversification of the economy from overreliance on agriculture which is the primary source of livelihood for about 68 percent of Uganda’s population .

Here over the last  three years , the minister said  Government has implemented  several key initiatives to promote diversification and stimulate growth  in none agricultural sectors. Going forward  the Finance ministry  spearheaded the development  of  a strategy to grow the economy ten- fold from USD 50 billion the Financial year 2022-23to USD 500 bn by 2040. The strategy focuses  on economic diversification  by focusing  on four major anchor sectors which include ; Agro- Industrialization, Tourism Development, Minerals Development including Oil and Gas, Science Technology and Innovation including knowledge  economy and ICT (ATMS).

According to the 2022 labor force survey the accelerated  diversification  of Uganda’s economy has resulted into significant  structural changes  in employment  patterns.

The other commitment,  Minister  Musasizi said  was to implement  extensive import substitution  in order to reduce  the import  bill, especially  on  basic consumer goods. Here  government used the Import  substitution Bill and strategy to promote domestic production  for previously  imported commodities by encouraging  more Ugandans and attraction foreign investors  to put up more manufacturing industries  in the country to produce more for import replacement.

On account of Government interventions in these areas, the Government also engaged in capacity building and skills development of its citizens  as well as promoting small and Medium  Enterprises (SMEs) through access to credit , training and market linkages  to enhance their  capacity to produce goods locally.

Minister Musasizi further explained that , Government also has continued  to facilitate value addition  to a number of Raw Materials  to enhance export earnings , reduce poverty and promote sustainable economic growth.

He said Uganda’s manufacturing  sector was steadily growing  and Government  has developed  industrial  establishments  (Industrial parks and Free zones), to facilitate investors  in various sectors to support the country’s economy.

Under the establishment  of Industrial Parks  and Free Zones  Uganda  has  evidenced  a number of High-Tech products  being manufactured locally such as pharmaceutical industry, Electrical Vehicle  Manufacturing among others.

Musasizi Urged  Ugandans to continue supporting NRM Government programs  and also vote  for President come 2026 God willing in order to consolidate NRM achiements.