President Museveni’s overriding goal is to achieve socioeconomic transformation for the benefit of all Ugandans and thus improve their lives. Its focus is to quickly accelerate the economic recovery that began in Financial Year 2021/2022, integrate more Ugandans into the money economy, and speed up growth in the country’s productive sectors. Public Opinions has compiled these facts and figures to enable you to understand and appreciate the social economic achievements of Uganda. Here below are the 85 facts and figures on the social-economic success of Uganda.
- Uganda’s real gross domestic product (GDP) grew at 2.9% in FY20, less than half the 6.8% recorded in FY19, due to the COVID-19 pandemic. GDP is expected to grow at a similar level in FY21-according to world Bank
- The size of Uganda’s economy is projected to expand to Shs. 162.1 Trillion for the financial year ending 30th June 2022. This is equivalent to US Dollars 45.7 Billion. Economic activity has been more buoyant at the growth rate of 4.6 percent per annum this financial year up from 3.5 percent of last year. This shows that the economy is on a path to full recovery from the COVID-19 disruptions.
- With this buoyant recovery and resilience of the economy – induced by our deliberate and prudent economic policies – Uganda’s GDP per capita has increased to US Dollars 1,046 in current prices, which is equivalent to Uganda Shs. 3.7 million per person per year.
- The services sector is expected to grow by 3.8 percent up from 2.8 percent growth last financial year. This is on account of continued recovery in wholesale and retail trade, education and tourism services; coupled with growth in real estate activities and ICT. The services sector is projected to contribute 41.5 percent to GDP.
- The industry sector is expected to grow by 5.4 percent up from 3.5 percent growth last financial year, largely on account of recovery in manufacturing and construction activities. The industry sector is projected to contribute 26.8 percent to our GDP.
- Over the last year, the Corona Virus pandemic has severely impacted the health, economic and social status of Ugandans. Several aspects of life were adversely impacted, though evidence shows resilience and we should congratulate ourselves as a country. According to a study by the Economic Policy Research Centre (EPRC) and the International Growth Centre (IGC), only 10% of Micro, Small and Medium Enterprises in Uganda remained open during the lockdown, and 93% of all Micro, Small and Medium enterprises were back in operation by October 2020. In addition, 90% of employees of private sector firms who were laid off during the lockdown were subsequently hired back after lockdown, and only 6.5% suffered permanent layoffs.
- The agriculture sector is expected to grow by 4.3 percent, largely as a result of growth in food and cash crop production, livestock as well as recovery in fishing. This is the same rate at which the agriculture sector grew last year. The sector contributed 24.1 percent to total economic output.
- In the second half of Financial Year 2021/22, however, there has been a significant increase in prices for some of the essential commodities and services. These include laundry bar soap, petrol and diesel, cooking oil, some food crop items such as wheat, sugar, potatoes, and onions. Education services, and building materials such as cement and steel have also experienced price increases. As a result, the overall inflation has increased considerably from 2.7 percent in January 2022 to 6.3 percent in May 2022, causing considerable discomfort among the public.
- The overarching goal of the NRM government over the new term of office, is to drive faster and inclusive socio-economic transformation, building on the progress we have attained over the years. The key to rapid socio-economic transformation in Uganda, rests on Industrialization mainly based on agriculture, boosting private sector business, and ensuring the wellbeing of Ugandans together with the development of their skills for productive work. That is why the budget for the next Financial Year 2021/22, is premised on the theme Industrialization for Inclusive Growth, Employment and Wealth Creation.
- Over the past year, the Uganda Shilling initially strengthened against the US Dollar, appreciating by 2.3 percent between April 2021 and April 2022. This appreciation was on account of higher dollar inflows from our exports, foreign direct investment, and foreigners buying Government treasury bills and bonds.
- The Shilling has experienced significant depreciation pressures since March 2022 on account of concerns arising from the Ukraine-Russia conflict and related sanctions as well as the rising interest rates in advanced economies. The Shilling depreciated by 1.7 percent month-on-month on average in the three months to June 2022 and by 6.7 percent against the US Dollar between June 2021 and June 2022. The Bank of Uganda is taking appropriate measures to avoid volatile fluctuations but not preventing the exchange rate movements.
- Commercial bank lending rates for Shilling denominated loans marginally declined to 18.8 percent in the 10-month period to April 2022, down from 19.1 percent in the same period in the previous year. Reduction in lending rates occurred in the Transport and Communication, Building, Mortgages, Construction and Real Estate, and Personal and Household Loans sectors.
- Over the last year the economy has remained resilient and is on a recovery path, amidst the ongoing pandemic and other shocks experienced over time. Economic growth for this financial year is projected at 3.3%, rising from 3.0% last financial year. The economy has grown significantly over the last five years. The size of the economy has grown from Shs. 108.5 Trillion in 2016/17 to Shs 148.3 Trillion in current prices by June 2021, equivalent to US$ 40 billion.
- Total export receipts of goods and services amounted to US Dollars 5.74 billion in the 12 months to April 2022, down from 6.2 billion in the previous 12 months. Merchandise exports reduced by US Dollars 858 million in the same period. However, coffee receipts increased by US Dollars 279.5 million to US Dollars 811 million in the same period.
- Private sector imports of goods have increased significantly to US Dollars 6.4 billion in the year to April 2022 from US Dollars 5.0 billion in the previous 12 months. This increase is attributed largely to investments in the oil and gas sector. For the same reason, foreign direct investment has rebounded strongly to US Dollars 1.36 billion in the year to April 2022 from US Dollars 892 million in the same period a year before.
- Uganda’s international reserves at the end of April 2022 increased to US$ 4.54 billion, equivalent to about 4.6 months of imports. This was an increase from US Dollars 3.57 billion as at April 2021.
- The revenue collection target in financial year 2021/22 Budget was Shs. 22.425 trillion. Total revenue collection is now projected at Shs. 21.486 trillion. This represents a shortfall of Shs. 939 billion.
- Despite this revenue shortfall, domestic revenue collection this financial year has improved compared to last year. This has been on account of improved tax administration and increased economic activity following the full reopening of the economy in January 2022
- The Industry sector’s contribution to the economy has increased slightly from 26.0% in 2016/17 to 27.4% in 2020/21. However, manufacturing has significantly diversified into many new products such as ethanol from sugar, and casein and powdered milk from dairy. In addition, Uganda’s products now have a widespread regional presence. For instance, in the pharmaceutical industry, CIPLA Quality Chemical Industries Limited (CIPLAQCIL), now has a footprint in West and Southern Africa. In the steel industry, Roofings Limited has become a premier source of Steel and Plastic in East and Central Africa.
- Scientific research and innovation is now transforming Uganda’s industrial base. For instance, the Kiira Automotive Industry that will produce 5,000 vehicles per year starting with Buses and Trucks is now 78% Page 5 of 35 complete. Together with Luwero Industries, Kiira Motors has developed the Kayoola EVS, a premium zero-emissions City Bus with a range of 300 kilometres, before the need to recharge its batteries. Two silk processing factories in Sheema and Mukono have acquired State-of-the-Art Silk Yarn processing equipment to produce high quality silk products. The silk industry is projected to earn Uganda US$100 million annually, and will create at least 150,000 jobs by 2030. The National Research and Innovation Programme has also supported the development of Makapads – a non-irritating herbal sanitary pad, a low-cost ventilator to assist breathing for patients with respiratory conditions including COVID19, and a highly efficient Coronavirus Antibody Test Kit, among others.
- Total Government expenditure excluding domestic debt refinancing, external debt amortisation and appropriation-in-aid is projected to amount to Shs. 35.027 trillion this ending financial year. This expenditure is equivalent to 21.6 percent of GDP. This is Shs. 697 billion higher than the expenditure planned at the time of budgeting, mainly due to the need to finance the health requirements associated with the impact of Covid-19 pandemic, and to address internal and regional security threats.
- to support recovery of the economy Government has provided credit relief to borrowers as well as funding to micro, small and medium enterprises (MSMEs) and corporate/large businesses. The following progress has been registered: Bank of Uganda extended credit relief to enable borrowers unable to service their loans during the pandemic to restructure them. Loans totaling Shs 7.2 trillion, representing 40 percent of total loans, were restructured over the period; Domestic arrears to private sector suppliers of goods and services to Government totaling Shs. 526 billion were cleared. In addition, Court Awards amounting to Ushs 57 billion were settled.
- The Microfinance Support Center (MSC) was funded to support microbusinesses through the Emyooga Fund (Shs. 100 billion) and support to SACCOs (Shs. 27 billion). Consequently, 6,600 SACCOs and 205,000 savings groups have been established across the country. These are operating a total of 4.1 million accounts. As a result, savings worth Shs. 63 billion as at the end of April 2022 among the lowest earners of this country have been realized.
- For small businesses that do not fall under Emyooga and at the same time do not qualify for the UDB funding, the Shs. 200 billion Small Business Recovery Fund has been established in partnership with Bank of Uganda supervised financial institutions to offer credit at a subsidised interest rate of 10% percent per year.
- To support the recovery of medium and large-scale businesses, Uganda Development Bank (UDB) was capitalized to the tune of Shs. 636 billion and which was fully disbursed by May 2022 at an interest rate of 12 percent per annum. In addition, UDB plans to disburse a further Shs. 351 billion by December this year.
- For private sector enterprises engaged in strategic industrial development of the country, such as agro-processing, manufacturing, and minerals beneficiation, the Uganda Development Corporation (UDC) received Shs. 160.7 billion this financial year to make equity joint venture investments.
- In the Financial Year 2021/2022, the Agricultural Credit Facility disbursed a total of Shs. 67.42 billion to 1,057 borrowers as at June 2022. Cumulatively, the fund has financed a total of 3,120 farmers across the country to a tune of Shs. 737.30 billion.
- In order to enhance surveillance and improve crime detection, the first Phase of the CCTV camera project was successfully implemented with the installation of over 3,000 cameras country wide. The second phase is now 95 percent complete, and targets all cities and major highways. Shs 3.987 Trillion has been provided for improvement of security and security infrastructure.
- In terms of systems that enhance the judicial process, the Electronic Court Case Management Information System (ECCMIS) to improve case management is now functional in seven (7) court circuits within the Greater Kampala Metropolitan Area. Additionally, the Video Conferencing System is operational in several courts across the country. The rollout of the Electronic Court Case Management Information System and Video Conferencing Systems in an additional ten (10) courts will also commence next financial year.
- To enhance the rule of law and to step up the fight against corruption, Government is providing Shs 381.6 billion for the Judiciary, Shs 95.0 billion for the Directorate of Public Prosecutions, Shs 876.4 Billion for the Uganda Police, and Shs 308.7 Billion for the Uganda Prisons Service. Governmen also allocated Shs 79.4 billion for the Inspectorate of Government.
- In order to integrate the 3.5 million households currently working in the subsistence economy into the money economy, and to proactively create wealth and jobs, the Parish Development Model (PDM) is going to be fully implemented in the coming financial year. In financial year ending June 2022, Shs 234 billion was provided for the implementation of the PDM. More efforts have been focused on preparatory activities to prepare for full implementation of the model. These include: recruitment of Parish Chiefs by all districts; data collection, verification of beneficiaries, establishment of SACCOs; setting up of the PDM Management Unit in the Ministry of Local Government; and sensitisation and mobilisation, among others.
- the development of health infrastructure nationwide will continue. The rehabilitation and expansion of the following General Hospitals will be undertaken – Itojo, Kaabong, Abim, Kambuga, Masindi, Kanungu, Kapchorwa, Bugiri and Amudat. In addition, forty-three (43) Health Centre IIs will be upgraded to Health Centre IIIs and seventeen (17) new Health Centre IIIs will be built in the sub-counties without health facilities. Seventy-five (75) Staff Houses will be built in the Karamoja region
- The mining industry continues to be a major contributor to Uganda’s economy. The contribution of the Mining and Quarrying industry to GDP increased from 1.1% in 2016/17 to 2.3% in 2020/21. This development is a result of the use of online mineral licensing, the biometric registration and training of 13,000 artisanal miners, and the construction of regional mineral beneficiation centers. More mineral beneficiation centers are under construction such as the ones in Fort Portal, which is 65% complete, and Ntungamo which is 90% complete. The selection of an investor to revive the Kilembe Mines Project, under a Public-Private Partnership (PPP), has also commenced.
- The Agricultural sector’s contribution to the economy has stagnated at around 23% over the last five years, which requires increasing the pace of industrialization. Nonetheless, there has been increased production of agricultural commodities, including for export. For instance, Coffee production increased from 4.6 million 60-kg bags in Financial Year Page 6 of 35 2015/16 to 8.1 million bags in the Financial Year 2020/21. Over the same period, fish catches increased from 449,000 to 600,000 tonnes. Milk production has also increased from 2.1 billion to 2.6 billion litres, over the same period.
- International trade continued to flourish despite the COVID19 pandemic. Merchandize exports grew by 4.7% increasing from US$ 4.1 billion in 2019 to US$ 4.3 billion in 2020. Agricultural export values grew by 19% from US$ 1.4 billion in 2018/19 to US$ 1.8 billion in 2019/20. Happily, Uganda’s merchandise trade deficit has significantly narrowed from US$ 2,866 million in 2018/19 to US$ 2,365 million in 2019/20, a reduction of US$ 500 million in one year.
- Coffee remains the leading agricultural export earning US$ 497.4 million in the Financial Year 2019/20. Dairy exports fetched US$ 204.5 million, while Tea exports earned US$ 71 million in Financial Year 2019/20. Fish exports earnings increased from US$ 121 million to US$ 227 million, over the same period.
- Annual foreign exchange earnings from tourism increased from US$ 1.35 million in 2015 to US$ 1.6 billion in 2018. Annual tourist arrivals also increased from 1.3 million to 1.5 million during the same period. This is a result of the sustained investments in the development and rehabilitation of tourism infrastructure and product diversification. Unfortunately, the outbreak of COVID19 has caused a huge setback to tourism, as we all know.
- Foreign Direct Investment (FDI) flows to Uganda amounted to US$ 1.3 billion in 2019 increasing by 20% from US$ 1.1 billion in 2018, and Domestic Investments increased by 13% from US$ 385.3 million to US$ 433.8 million in the same period.
- Uganda’s per capita income is increasing steadily. In Financial Year 2015/16 it was US$ 808 and is projected to increase to US$ 932 in Financial Year 2020/21. We expect to achieve middle-income of US$ 1,039 within the third year of NDPIII implementation. The key reasons why we did not attain a middle-income status by 2020 are (i) lower than expected productivity, especially in agriculture; (ii) inefficiencies in public investments resulting in less-than-optimal returns; and (iii) the shocks from natural disasters, especially in the last two years.
- The recently concluded Household Survey reports that poverty has declined from 21.4% in 2016/17 to 20.3% in 2019/20. Poverty rates reduced in West Nile, Bunyoro, and Elgon regions, among others. However, 39% of Ugandan households are still in subsistence economy. the Household Survey also found that 68% of Ugandans work in Agriculture and 74% of Ugandans of working age are engaged in some form of employment. Formal employment has also expanded by 17% between 2016/17 and 2019/20, with the PAYE register expanding from 1.3 to 1.5 million registered taxpayers, according to the Uganda Revenue Authority.
- In order to empower youth and women to increase self-employment and incomes, 247,700 youth have been financed with Shs. 165 billion to implement 21,000 projects under the Youth Livelihoods programme. A further 166,300 women in 13,800 groups have received funding for projects. The externalization of labour has enabled 16,750 persons get employment in the Middle East over the last year, and remit approximately US$ 9 million per month.
- In transport infrastructure development, the total national paved road network has increased by 41% from 3,800 kilometres in 2016 to 5,400 kilometres today. 11 inland water vessels are operational with the commissioning of the Buwama and the Sigulu Ferry services. With respect to air transport, the upgrade of Entebbe International Airport is almost complete with 96% of works at the cargo complex done. Kabaale International Airport in Hoima now stands at 55.6% complete. To revive railway transport, rehabilitation of the Tororo-Gulu Meter Gauge Railway (MGR) has commenced, and 79% of the land for the construction of the Standard Gauge Railway (SGR) has been acquired. In addition, locomotives are being procured to further support Uganda Railways.
- National electricity access today stands at 51% of which, 24% is on-grid and 27% off-grid. With the implementation of the free Electricity Connections Policy (ECP), 152,500 households have been connected to the grid. Power generation capacity has increased by 38% Page 9 of 35 from 925 megawatts in 2016 to 1,274 megawatts in 2020. The completion of the Karuma hydropower plant which is 98% complete, and several minihydropower plants such as Aswa, Nyagak and Muzizi will further increase this capacity.
- Internet access now stands at 52% with 21 million people using the internet. Active mobile money subscriptions are 23 million served by 235,800 mobile money agents. High-speed optical fibre cable covers 3,900 kilometers. In addition, new industries have been established in the assembly of computers, mobile phones and accessories, and the development of knowledge-based ICT solutions. The ICT Innovation Fund established in 2017 has funded the local development of 115 applications many of which are in use in Government and the Private Sector. These include the Academic Information Management System (AIMS) and the e-Government procurement solutions.
- The quality of life of Ugandans has improved over the last five years. Life expectancy has increased from the lowest level of 44 years in 1998 to 63 years currently. Literacy rates have improved to 76% of the population. In addition, the following progress has been recorded:- 5.4 million home study books were distributed to private and public primary and secondary schools to support continuity of learning during the COVID19 pandemic; 270 teachers were trained in Early Grade reading methods for preprimary schooling, as part of the Early Childhood Development curriculum rollout this year; and 14,350 teachers were trained to provide psycho-social support arising from CoVID19.
- Safe water coverage in rural and urban areas is estimated at 68% and 71% respectively. Consequently, 48,000 villages, representing 70% of all villages, have at least a source of water. In urban water supply, National Water and Sewerage Corporation (NWSC) has extended 954 Kilometres of water mains and 49,000 new customers have been connected. In addition, 1,506 Public Stand posts have been installed, which serve an estimated 300,000 people.
- Access to healthcare as measured by the proportion of people within a 5-kilometre radius of a health facility now stands at 91%. In terms of functionality, 81% of Health Centre IVs offer caesarean section while 51% offer both caesarean section and blood transfusion. The state-of art Entebbe Paediatric Surgery Hospital has been completed and all National and Regional Referral Hospitals have been equipped with Intensive Care Unit (ICU) beds and Oxygen plant.
- Despite the adverse impact of the COVID19 pandemic, the economy remains resilient, partly as a result of quick and strong Government response. To minimize the negative impact of COVID 19 on the social and economic welfare of the country, direct fiscal interventions totalling 2.6 trillion were implemented. In addition, 7.3 trillion private loans in commercial banks were restructured, as part of the stimulus package. The economic stimulus supported (i) household economic welfare; (ii) firms to survive the crisis; and (iii) maintenance of financial stability to avoid the potential collapse of the economy.
- The mitigation of the adverse impact of CoVID19 pandemic on health and education, was a key element of Government response. 964,000 doses of CoVID vaccines were procured, and mass vaccination has began following the priority accorded to most vulnerable categories of the population. Today 733,923 persons have received their first dose of the vaccine and 40,895 have completed both doses. Clinical trials of a locally researched treatment is also underway. To ensure continuity of education during the COVID19 pandemic, distance learning has been used based on electronic platforms including Television and online classes. Digital platforms are also in use for inspection and supervision of schools.
- To support recovery of business, Private sector loans totalling Shs. 7.3 trillion, representing 43% of all loans, had repayments postponed, a quarter of which were loans in Tourism, Trade, and Commerce. Tax relief totalling Shs. 2 trillion was provided to businesses disrupted by COVID19. In addition, Government paid Shs. 677 billion in arrears to private sector firms it owed in order to ease their liquidity. The Uganda Development Bank was allocated Shs. 555 billion to finance manufacturing, agribusinesses and other private sector firms affected by the CoVId19 pandemic.
- Seed capital amounting to Shs. 416 billion was provided to the youth, women entrepreneurs and Emyooga. A total of 6,394 Emyooga SACCOs in 349 constituencies have received Shs. 200 billion.
- With respect to law and order, crime reduced by 8.9% from 215,000 cases in 2019 to 196,000 cases in 2020. Interventions such as the Safe City Camera Project, enhanced motorized and foot patrols and community policing have contributed to this decline. In the Judiciary, the proportion of cases that are over 2 years old have reduced from 24% in 2017 to 17.5% in 2021 as a result of the implementation of the case backlog reduction strategy and the use of Alternative Dispute resolution alongside conventional court proceedings.
- The Economic Growth Strategy for the medium term aims to achieve faster and inclusive growth and enhanced socio-economic development. The target is to raise growth rates from 4.3% estimated for Financial Year 2021/22 to at least 7% in the medium-term. The strategy that will achieve these medium-term objectives is three-fold: Restoring the economy back to the medium-term growth path; iImproving the wellbeing of the population to ensure a healthy and skilled workforce; and Providing peace, security and good governance.
- Access to affordable medium-to-long term capital is key to boosting business. Uganda Development Bank will be further capitalized with an additional Shs. 103 billion in financial year 2021/22, in addition to the Shs. 555 billion disbursed this Financial Year 200/21 for lending to Small and Medium Enterprises affected by the COVID19 pandemic, among others. The Agricultural Credit Facility (ACF) at the Bank of Uganda, the Emyooga programme through the Micro Finance Support Centre (MSC) and the Uganda Women Entrepreneurship and Youth Funds will continue to provide targeted funding for agriculture, women and youth group projects respectively.
- Applied Research in science, technology and Innovation are key to industrialization and socio-economic transformation. Significant gains in productivity and competitiveness can be achieved with product development.
- To further support advancement in scientific research and innovation, the construction of the National Automotive Park will commence next year. Feasibility studies for Regional Science and Technology Parks and Technology and Business Incubators will also be carried out. Technology development for the manufacture of Personal Protective Equipment (PPE), Diagnostics and Bio-medical science, Immunology, Vaccines and Digital Applications will be further supported.
- Agriculture remains the mainstay of livelihoods for the vast majority of Ugandans in rural areas who engage in primary production and related non-farm activity. The key to rapid socio-economic transformation rests on unlocking the potential of agriculture through aggressive industrialisation. This will enable the population engaged in farm and nonfarm rural economic activity to earn higher incomes and employment.
- The Agro-industrialization strategy will address low production and productivity of primary agriculture, poor post-harvest handling and storage, limited value addition and insufficient market access. It will also permit adherence to food safety requirements and standards in export markets. This will also partially address the reason provided to create Non-Tariff Barriers (NTBs) in regional markets, which constrains agribusiness.
- The Parish Development Model is an approach to organizing and delivering public and private sector interventions for wealth creation including investment planning, budgeting and service delivery at the parish level as the lowest planning unit. This approach seeks to create income generating opportunities at the 10,594 Parishes in the country.
- Uganda’s agricultural exports are required to meet international Phytosanitary standards. These standards ensure that agricultural commodities for export are free of pests and diseases. Eight (8) major border posts will be constructed and equipped to carry out inspection, testing, fumigation and packaging services for exports. They will be located at Mutukula, Katuna, Mpondwe, Malaba, Busia, Suam, Elegu, and Lwakhakha and at the Entebbe and Kabale International Airports. This will address quality standards for commodity exports such as maize and poultry and dairy products. Shs. 7 billion has been provided for this purpose.
- Exploitation of Uganda’s minerals, oil and gas endowments, is a major source of growth in the medium term. Mineral beneficiation adds economic value to naturally endowed minerals. The commercialization of our oil and gas endowments will generate investments of between US$ 15 – 20 billion over the next five years. The requirement to have these investments with substantial local content will enable the creation of jobs.
- The Governments of Uganda and Tanzania signed agreements that will facilitate the undertaking of the Final Investment Decision by the oil companies. These agreements will accelerate the production of the first oil. Investment requirements in this sector will now present an opportunity for Foreign Direct Investment inflows, creation of both direct and indirect jobs, facilitate local enterprise growth, including forward and backward linkages to agriculture, tourism, and petrochemical industries. I thank the President for his foresighted leadership in guiding and spearheading the development of this sector.
- In the oil and gas industry, critical actions that have now paved way for investment and commercialisation include the signature of agreements between Uganda, Tanzania and the International Oil Companies (IOCs) for the East African Crude Oil Pipeline (EACOP). The enabling legislation for the EACOP (EACOP Bill) will soon be brought to Parliament for consideration.
- Regarding the promotion of renewable energy, the government will commission solar mini-grid plants in Rubirizi and Kasese districts. These include the Kasenyi 37 kilowatts , Kashaka 28 Kilo Watts, Kazinga 26 KiloWatts, Kihuramu 18 KiloWatts, Kisebere 16 KiloWatts, and Kisenyi 32 KiloWatts. These solar mini-grids were constructed by Worldwide Fund for Nature – Uganda. The mini-grids will provide power to isolated community clusters.
- ICT is key to enhancing socio-economic transformation and for improving efficiency and productivity. The COVID19 pandemic has presented the opportunity for digital transformation of the economy. Therefore, the major priorities for Financial Year 2021/22 will include the extension of broadband ICT infrastructure up to the sub-county level; expanding the Digital Terrestrial Television and Radio Broadcasting network to facilitate tele-education for learners; and facilitating the development of software solutions to support eGovernment, eCommerce and e-Payment, among others.
- The Growth Triangle approach leverages urbanisation as a force for socio-economic transformation. Recently established cities namely Arua, Mbarara, Gulu, Jinja, Fort Portal, Mbale, Masaka, Lira, Soroti and Hoima are located in the corridors of the Growth Triangle. These cities would be centres for industrial and business parks, trade, and serve as centres of excellence in healthcare, education, and hospitality. This will make urban areas more productive and also develop a revenue base for the cities. Strengthening physical planning, and addressing urban crime, pollution, and traffic congestion are key aspects in developing the Growth Triangle.
- The NRM Government under the leadership of Gen Museveni is recruiting 4,200 primary school teachers to raise the national staffing level to 70%. In addition, 1,055 secondary teachers will be recruited in local governments with staffing level below 50% of the establishment. To improve supervision, 440 inspectors will be recruited across all local governments. To address leaner, teacher and school management absenteeism, the Integrated Inspection System (electronic inspection) will be rolled out throughout the country. The rehabilitation of 74 primary and 13 traditional secondary schools, for example Nabisunsa Girls school, will also be undertaken. Construction of 36 partially completed schools, for example Morungatunyi secondary school, will be completed. Construction of 7 skills development institutions like the Arua School of Nursing will also be completed.
- Access to safe water and sanitation is important in improving the wellbeing of the population. The target is to increase the coverage of safe water supply in rural areas to 81% and to 100% in urban areas by 2025. At a minimum we will ensure that every village in underserved districts has at least one safe water source, as well as promote improved sanitation.
- To improve access to justice, the Judiciary and other law and order services will be deconcentrated to the Regional and District level. In this regard, Shs. 9.4 billion has been provided to kick-start the construction of the Courts of Appeal in Gulu and Mbarara, High Court Circuits in Luwero and Soroti, Magistrate Courts in Budaka, Alebtong and Lyantonde, Grade 1 Magistrate Courts in Abim, Patongo, Karenga, and Kyazanga. the budget of the Judiciary was substantially enhanced from Shs 199.1billion to Shs.376.9 billion. Out of this, Shs. 146.6 billion has been provided for the recruitment and facilitation of Judicial staff. In addition, Shs. 18.2 billion has been provided to implement the Electronic Court Case Management Information System and the Prosecution Case Management Information System.
- Domestic revenue for next financial year is projected at Shs 22,425 billion, equivalent to 13.8% of GDP, compared to a projected outturn of Shs 19,432 billion, equivalent to 13.1% of GDP in FY 2020/21. This target revenue is an increase of 0.7%age point of GDP. The increase in tax collections will be realized from an improvement in the level of economic activity, increased efficiency in tax collection by URA through strengthening compliance and enforcement, as well as new tax measures and administration reforms.
- Uganda’s debt amounted to US$ 17.96 billion as at 31st December 2020, equivalent to 49.8% of GDP. Borrowed funds have been used to finance mainly infrastructure projects such as the Karuma and Isimba hydropower plants, oil roads, development of airports industrial parks, transmission lines, water and irrigation projects. .Uganda public debt remains sustainable in the short, medium and long term. I reaffirm Government’s unwavering commitment that Uganda shall continue to honour its debt obligations as they fall due. Uganda will not default on repayment of its debt. All contractual debt obligations will be fully honoured.
- the construction and equipping of a modern heart facility will commence in the coming financial year, to be located in Naguru. This US Dollar 70 million facility will be funded by the Arab Bank for Economic Development in Africa (BADEA); the Saudi Fund for Development (SFD); and the OPEC Fund for International Development (OPEC Fund).Government allocated a total of Shs 3.722 trillion for healthcare delivery in Financial Year 2022/20223.
- National safe water coverage now stands at 69.8 percent, with coverage in rural areas at 68 percent and 71.6 percent in urban areas. Government target is to increase safe water coverage to 81 percent over the medium term.
- National electricity access today stands at 57 percent, of which, 19 percent is on the main national grid and 38 percent is off-grid, including solar power. Uganda’s total electricity generation capacity has increased from 1,268 megawatts in Financial Year 2019/2020 to 1,347 megawatts in Financial Year 2021/2022, on account of the completion of the 42 megawatts Achwa I, the 21 megawatts Nyamagasani, and the 15.5 megawatts Sugar Corporation of Uganda Limited (SCOUL) plants.
- The transmission network increased from 3,100 kilometres in Financial Year 2020/2021 to 3,431 kilometres as at the end of the third quarter Financial Year 2021/22 as a result of the commissioning of the Karuma-Kawanda 400 kV and Karuma-Olwiyo 132 kV Transmission Lines. The Luzira Sub-station was completed and will be commissioned after completion of the 15 kilometres 132kV transmission line.
- The geographical coverage of Broad Band services (3G) stands at 66 percent, allowing digital access for 74 percent of the population. Next financial year, the Government will support the Fourth Industrial Revolution Technologies. These include Artificial Intelligence, Internet of Things (IoT) and the use of Robotics. NRM Government will also extend broadband ICT infrastructure to enable connectivity to facilitate public service delivery. Government allocated Shs. 124.2 billion towards Digitalisation.
- the Resource Envelope for Financial Year 2022/23 amounts to Shs. 48,130.7 billion and is comprised of both domestic and external resources
- Domestic Revenue amounts to Shs. 30,797.3 billion of which Shs. 23,754.9 billion will be tax revenue and Shs. 1,795.9 billion will be NonTax Revenue
- Domestic borrowing amounts to Shs. 5,007.9 billion.
- Budget Support accounts for Shs. 2,609.2 billion.
- External financing for projects amounts to Shs. 6,716 billion of which Shs. 4,625.7 billion is from loans, and Shs. 2,090.5 billion is from grants.
- Appropriation in Aid, collected by Local Governments amounts to Shs. 238.5 billion.
- Domestic Debt Refinancing will amount to Shs 8,008.0 billion
- Total expenditure will be Shs.48,130.7 billion. Excluding domestic debt refinancing and Appropriations in Aid (AIA), it amounts to Shs. 39,884.2 billion of which Wages and Salaries is Shs. 6,366.9 billion, Interest Payments is Shs. 4,691.9 billion, Non-wage Recurrent Expenditure is Shs. 14,259.4 billion and Development Expenditure is Shs. 14,565.9 billion.
- as at the end of December 2021, Uganda’s total public debt stock stood at Shs. 73.5 trillion (equivalent to USD 20.7 Billion), of which External Debt amounted to Shs. 45.72 trillion (equivalent to US Dollars 12.9 billion) and Domestic Debt amounted to Shs. 27.77 trillion (equivalent to US Dollars 7.84 billion). This represents nominal Debt to GDP ratio of 49.7 percent.
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