Uganda says 2023/24 GDP growth to reach 6%

Ugandan business people are seen at a market with their merchandises for sale at Mpondwe border that separates Uganda and the Democratic Republic of Congo, in Mpondwe, Uganda. REUTERS/James Akena/File Photo

KAMPALA (Reuters) – Uganda’s economy will expand by 6% in the next fiscal year that starts in July, an increase from a projected growth of 5.5% this year, boosted by petroleum industry-related investments, the finance ministry said on Tuesday.

Ramathan Ggoobi, the finance ministry’s top technocrat, said in a statement that in the 2023/24 (July-June) fiscal year, economic growth was projected to reach 6% and an average of 7% over the medium term.

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Uganda and international oil firms like France’s TotalEnergies, and China’s CNOOC are implementing multi-billion dollar projects including oilfield facilities, a crude pipeline, an airport and a refinery.

Commercial oil production is projected to take off in 2025.

Ggoobi said Uganda’s GDP would by the end of the next fiscal year expand by up to 206.54 trillion Ugandan shillings ($55.30 billion).

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This month, lawmakers approved the government’s plan to raise spending by 10% to 52.73 trillion shillings in the 2023/24 fiscal year.

Ggoobi added that spending priorities would include the oil and gas sector and the construction of the Standard Gauge Railway (SGR).

The East African country has said it plans to hand a $2.2 billion contract to construct a 273-kilometre SGR line to Turkish firm Yapi Merkezi and that construction would start this year.

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