Uganda lowers economic growth forecast for ’24/’25

Uganda‘s Finance Minister reversed the country’s economic growth forecast for the 2024/2025 fiscal year, projecting growth between 6 and 6.5 per cent. This revision follows an earlier estimate of 6.4 to 7 per cent presented during the budget announcement for the current financial year, with the GDP at $53 billion as of the end of June.

In the statement released on Tuesday, the ministry emphasised that economic activity would be primarily fueled by investments in sectors such as agro-processing and oil and gas. The government also disclosed that it has allocated 124 billion Ugandan shillings ($33.6 million) to the state-run petroleum company UNOC to support its investment in the East African Crude Oil Pipeline (EACOP).

The EACOP project is facing difficulties in securing funding, as several Western backers have opted out due to environmental concerns. The current exchange rate is approximately $1 to 3,690 Ugandan shillings.

Attribution: Reuters