KAMPALA, September 2, 2025 — The Government of Uganda has pledged to implement recommendations made by the International Growth Centre [IGC], as part of its efforts to manage the country’s rising debt and establish a more deliberate path to sustainable economic growth.
The IGC is an economic research centre based at the London School of Economics in the United Kingdom. It works closely with policymakers in developing countries to promote inclusive and sustainable growth through groundbreaking research.
Speaking at the 9th High-Level Economic Growth Forum recently held recently at the Kampala Serena Hotel, the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance, Planning and Economic Development [MoFPED], Ramathan Ggoobi, confirmed that the Ministry would take forward the IGC recommendations presented by stakeholders during the conference. These recommendations aim not only to curb the growing public debt but also to create a robust foundation for economic expansion.
Ggoobi stated that the proposals would help shape the national budget for the financial year 2026/27, with a focus on achieving a balance between rapid growth and fiscal discipline.
“We shall use the recommendations from the 9th Economic Growth Forum to shape the 2026/27 budget, aiming to balance rapid expansion with fiscal prudence as the government seeks to transform the economy,” Ggoobi said.
He further emphasised that growth targets must be underpinned by sound macroeconomic management and increased private sector investment.
“Exports are the highway to deliver the US$ 500 billion economy,” he said, stressing that “traditional concessional financing is dwindling and new approaches are needed.”
Ggoobi also committed to raising domestic savings and improving tax collection, noting these measures would be implemented with care to avoid overburdening taxpayers.
Earlier, the Deputy Secretary to the Treasury, Patrick Acailap, called for collective efforts to enhance Uganda’s export competitiveness and position the country more firmly within regional and global value chains.
“Collective efforts are needed to position Uganda firmly within the region and global value chain,” he said.
Uganda’s economy expanded by 6 percent in the 2023/24 financial year and is projected to grow by 6.4% in the current fiscal year, driven largely by investments in the oil sector and growth in services.
However, public debt has surged, reaching 54 percent of gross domestic product [GDP] in June 2024, up from 41% five years earlier. Debt servicing costs are increasingly crowding out development spending.
The country’s tax-to-GDP ratio remains around 13%, while remittances totalled US$ 1.4 billion in 2023, according to World Bank data.
The Treasury also aims to improve resource allocation by directing funds towards tradable sectors and high-multiplier activities, while cutting back on low-impact expenditure.
Uganda’s Small and Medium Enterprises [SMEs] sector, which constitutes 90 percent of private firms and employs over 2.5 million people, is expected to benefit from ongoing reforms designed to improve infrastructure and access to finance.
Richard Newfarmer, Country Director of the International Growth Centre, urged the government to ensure that its plans are effectively implemented and deliver measurable results.
Recommendations from the Forum will feed into the national budget process, as policymakers begin drafting budget framework papers aimed at reducing concessional borrowing and promoting long-term, sustainable growth.
Other key presenters at the Forum included the Executive Director of the IGC, Dr Jonathan Leape; Governor of the Bank of Uganda, Michael Atingi-Ego; Permanent Secretary at the Ministry of Health, Dr Diana Atwine; Commissioner from the Ministry of Trade and Cooperatives, Joshua Mutambi; and Superintendent of Industrial Value Chains Development, Dr Cosmas Mwikirize.
Key recommendations from the Forum held under the theme, “Enhancing Uganda’s Competitiveness and Growth Amidst a Changing Global Economic Environment”, included:
- Mobilising long-term financing for infrastructure development
- Stabilising the financial sector
- Securing capital to de-risk businesses
- Promoting mindset change and skills development
- Ensuring macroeconomic stability
- Expanding results-based financing
- Repurposing the national budget to focus on productive sectors
- Improving efficiency and value for money
- Accelerating digitisation
- Increasing investment in the health sector to support a productive population
- Empowering young people
- Implementing service delivery standards
https://thecooperator.news/the-8th-high-level-economic-growth-forum-set-for-late-august-2024/
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