Uganda’s growth strategy for the 2024/2025 Financial Year is anchored on agro-industrialisation, tourism development, mineral development including oil and gas, and technology and innovation, the Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija has said. “These are the anchors that are going to propel Uganda to a US$500 billion economy in the next one-and-a-half decades,” said Kasaija. Kasaija was delivering the budget speech during a plenary sitting of Parliament presided over by Speaker, Anita Among, at Kololo Ceremonial grounds on Thursday, 13 June 2024. Kasaija explained that to achieve the US$500 billion economy, government must among others, double the size of the Growth Domestic Plan (GDP) every five years and raise per capita GDP six-fold from the current US$1,146 to about US$7,000 in financial Year 2039/2040. Another strategy, according to Kasaija is doubling the level of savings in the economy from 20 per cent of GDP to 40 per cent in 2040, as well as raising the share of exports in GDP from 12 per cent in 2022 to 50 per cent. The minister however, said that the growth prospects face some risks that will need to be mitigated. “These include; climate change affecting agricultural production and infrastructure, regional and global geopolitical tensions, high interest rates which constrain access to affordable debt and fluctuations in global commodity prices,” Kasaija said. To minismise the effects of these risks, Kasaija said that government is implementing climate change adaptation measures, exploring cheaper sources of financing including climate finance and ensuring frugality in government expenditure. Kasaija also outlined priority areas in support of the anchor sectors to drive rapid growth of the economy which include; investing in the citizenry through education, health and water, sanitation and hygiene, which have been allocated Shs10.204 trillion in the coming financial year. Other areas are peace and security which has been allocated Shs9.107 trillion, and maintenance of roads as well as rehabilitation of the metre gauge railway and construction of the standard gauge railway, allocated Shs4.989 trillion. Kasaija added, “Investing in wealth creation initiatives, including commercial agriculture, value addition, the Parish Development Model, Emyooga, Agriculture Credit Facility, tourism, science based research, youth skilling, export promotion programme, and GROW project, I have allocated Shs2.641 trillion.” He said that the guiding principles of the Shs72.136 trillion 2024/2025 budget included strengthening domestic revenue mobilization, strengthening public finance management to ensure accountability and frugality, and avoiding misuse of public resources; and borrowing for only strategic high impact interventions. He reiterated that domestic revenue collection is projected at Shs31.982 trillion, wherein he called for reduced reliance on borrowing and external debts. He said that as at the end of December 2023, Uganda’s debt stood at Shs93.38 trillion, out of which Shs55.37 was external debt. “I call upon all of you colleagues and fellow Ugandans to render Uganda Revenue Authority and other revenue-collecting institutions the necessary support to mobilise the revenue required to meet its targets for financial year 2024/2025. We must raise more revenue,” said Kasaija. He also made a reassurance that the economy has fully recovered from various shocks that have impacted it in the past four years, saying that GDP is projected to grow by 6 percent in the 2023/2024 financial year, compared to the 5.3 percent in the 2022/2023 financial year. “As a result of this robust growth, the size of the economy is now estimated at Shs202 trillion up from Shs184.3 trillion in nominal terms,” Kasaija said. He added that it is projected that in the next financial year, Uganda’s GDP will further expand to Shs225.5 trillion. According to Kasaija, this growth will be driven by among other factors; increased oil and gas activities, growth in exports supported by the increase in regional trade, intra-Africa trade and harnessing existing and new partners in the Middle East and Asia.
Speaker warns MPs against kickbacks from accounting officers.
Speaker of Parliament Anita Among has warned legislators to desist from accepting inducements from accounting officers as they are bound to falling into traps of corruption. The Speaker’s warning comes after the arrest and remand of Lwengo Woman MP Cissy Namujju, Paul Akamba of Busiki County and Yusuf Mutembuli of Bunyole East over corruption related offenses. Ms Among, who chaired the second sitting of the first meeting of the fourth session, in her opening remarks disclosed how the 2024/2025 National Budget is a culmination of consultation from the different stakeholders guided by the constitution, Public Finance Management Act, National audit Act and Local government Act of 1997. According to the Speaker, the 2024/2025 budget is a product of complementary working relationship between the three arms of government. The Speaker also used the platform of budget reading to warn members against accepting inducements from accounting officers as they are bound to fall into traps of corruption. The Speaker who demanded accounting officers exercise their duties diligently by utilizing well public resources, expressed concernsthat some still fear sharing information related to influence peddling in manipulating their budgets. “Its unfortunate that some Accounting officers have decided to keep silent on issues related to influence of manipulation of the budget,” Ms Among said. Source: Nile Post
MPs Probe Masaka Hospital’s UGX 302M Spending on Special Meals and Entertainment
Members of Parliament on the Public Accounts Committee (PAC) have scrutinized officials from Masaka Regional Referral Hospital over the Shillings 302,087 million expenditure on special meals and entertainment. This expenditure, sourced from the hospital’s revenue, contravenes laws mandating all funds to be remitted to the consolidated fund. A December 2023 report raised concerns when it revealed that while Masaka Hospital collected Non-Tax Revenue (NTR) amounting to Shillings 698 million, only UGX 400M was transferred to the Bank of Uganda’s consolidated fund. Shilling 51 million was reported as bank charges at DFCU Bank, and Shillings 302 million was spent on unforeseen emergencies outside the allocated non-wage funds. During the PAC meeting on June 11, 2023, it was revealed that Masaka Hospital received Shillings 168 million for staff and casual labourer allowances but spent Shillings 328,345 million, exceeding the budget by Shillings 160,345 million. For welfare and entertainment, the hospital received Shillings 15,927 million but spent Shillings 34,261 million, overshooting Shillings 18,334 million. Additionally, special meals were allocated Shillings 103 million, but the actual expenditure was Shillings 124,634 million, an excess of Shillings 21,634 million. Medical supplies also saw an over-expenditure, with Shillings 94,841 million warranted but Shillings 124,726 million spent, creating an extra Shillings 29,885 million. The maintenance budget for machinery and equipment was exceeded by Shillings 5,479 with Shillings 17,229 million spent against a budget of Shillings 11,750 million. Kalungu West Constituency MP Joseph Ssewungu questioned the nature of the special meals and drinks, expressing concern over potential frivolous spending. He remarked, “When you talk about special meals and drinks, what special meals are these? Do they include black label, whisky?.” Dr. James Elima, the Director of Masaka Hospital, clarified that the special meals were for senior management meetings held weekly. “These are managerial meetings for running the hospital,” he explained. However, Muwanga Kivumbi, the Butambala County MP emphasized the issue was not the meals themselves but the excess expenditure. “Special meals and drinks is accounting nomenclature. The only challenge is, you spent more money than budgeted,” he said. Ben Nahabwe, the hospital’s accountant, defended the expenditures, asserting that all vouchers were available for audit and fully accounted for. Yet, MPs criticized the practice of spending money at source, which deviates from standard procedures where Uganda Revenue Authority (URA) collects all revenue. Nahabwe admitted awareness of the requirement to remit NTR to the Bank of Uganda but cited emergencies as the reason for immediate expenditure at source. Dr. Elima announced that starting July 1, 2024, URA would take over revenue collection at all regional referral hospitals. Kivumbi, the Chairperson PAC, instructed Dr. Elima and Nahabwe to record statements with the Criminal Investigations Directorate for unauthorized expenditure. “You breached the law, taking over powers of appropriation,” he stated. Dr. Elima projected an increase in hospital revenue with the installation of a new diagnostic centre, potentially reaching Shillings 1 billion. Additionally, the Auditor General raised concerns about payroll inconsistencies and payments to non-existent staff, highlighting the need for improved financial management. The PAC continues to investigate these financial discrepancies, aiming to ensure accountability and proper use of public funds at Masaka Regional Referral Hospital. Source: Parliament Watch
Government Plans to Secure UGX18 Trillion in Loans Amidst Soaring Public Debt
The Ministry of Finance has announced plans to acquire 29 additional loans valued at over Shs18.7 trillion to finance various public projects. This move comes as Uganda’s public debt reaches US$24.60 billion (Shs93.38 trillion) as of the end of December 2023. These details are outlined in the “Report on Public Debt, Grants, Guarantees, and Other Financial Liabilities for the Financial Year 2023/2024,” which the Ministry of Finance will present to Parliament. This presentation is in accordance with the Public Finance Management Act (2015), Sections 39(4), 42(2-3), and 44(5). Among the projects listed, the Standard Gauge Railway project, estimated at US$1,928.86 million (Shs7.296 trillion), is a significant one, though it still lacks a confirmed financier. Another major loan in the pipeline is US$414.8 million (Shs1.569 trillion) for the 2023/24 budget support, with ongoing discussions with potential financiers. Negotiations with Citi Bank are also underway to fund the construction of oil roads, including the Lusalira-Nkonge-Lumegere-Ssembabule road by the Uganda National Roads Authority (UNRA) at a cost of US$130 million (Shs491.848 billion). Similar negotiations are ongoing for the Kabwoya-Buhuka and Ntoroko-Karugutu roads at US$108.11 million (Shs409.028 billion). Additionally, a loan of EUR150 million (Shs616.870 billion) is being discussed for the development of Kisoro Industrial Business Park by the Uganda Investment Authority. The development of Kasese Industrial Business Park by the Uganda Investment Authority is also in the pipeline, with a loan of EUR196 million (Shs806.044 billion) currently under discussion. The Ministry of Agriculture has proposed a loan of US$160 million (Shs605.352 billion) to enhance agricultural production, quality, and standards for the Market Access Project. The French Development Agency has shown interest in funding the construction of the Katuna-Muko Kamuganguzi Road (104.0 km) and the Laropi-Moyo-Afogi Road with a 1.2 km bridge at a cost of US$206.15 million (Shs779.958 billion), with UNRA overseeing the project. Discussions are ongoing for these funds. In the health sector, there are plans to secure EUR8.5 million (Shs34.955 billion) for establishing a Regional Oncology and Diagnostic Center at Mbale Institute from Australia, managed by the Uganda Cancer Institute. Additional funding of US$14 million (Shs52.968 billion) is being sought to expand the Uganda Cancer Institute Project. The Ministry of Health also plans to rehabilitate Bugiri Hospital at a cost of US$20 million (Shs75.669 billion), with discussions ongoing with the identified financier, BADEA. Despite the World Bank halting funding to Uganda following the passing of the Anti-Homosexuality Act 2023, the government still plans to rely on the lender for the Northern Uganda Social Action Fund 4 (NUSAF-4) at US$250 million (Shs945.862 billion), to be overseen by the Office of the Prime Minister. Additionally, the government is awaiting the World Bank’s Board approval for Uganda’s Learning Acceleration Program (ULEARN) by the Ministry of Education, valued at US$150 million (Shs567.517 billion). In the water sector, the development of large gravity flow schemes to increase safe water coverage in rural areas is planned, with the India Exim Bank expressing interest in funding this project to the tune of US$87.625 million (Shs331.524 billion). The French Development Agency is also in negotiations with the government to fund the construction of roads in the Greater Kampala Metropolitan Area Urban Development Project at a cost of EUR40 million (Shs164.498 billion). The Uganda Electricity Generation Company Limited is seeking EUR145 million (Shs596.308 billion) to rehabilitate the Nalubale Kiira Dam, while the Uganda Electricity Transmission Company Limited (UETCL) plans to extend electricity along the Mirama-Kikagati-Nsongenzi Transmission line. Negotiations are underway with the Swedish Export Credit Agency for EUR29.66 million (Shs121.975 billion) to fund this project. SOURCE: Parliament Watch
President Museveni’s Stance On Corruption, Foreign Threats In State Of The Nation Address
In a speech where Ugandans expected accountability for the financial year ending 30th June 2024, President Yoweri Museveni addressed corruption and re-affirming the journey of his National Resistance Movement (NRM) since capturing state power in 1986. While delivering his State of the Nation Address (SONA) at the Kololo Independence grounds on 6th June, Museveni informed Ugandans that has received intelligence briefing to confirm that there is a corruption racket involving officials in the Ministry of Finance and in the Parliament of Uganda. Talk about corruption with a lot of allegations pointing at top government officials have dominated the social media and to some extent mainstream media spaces in recent times. With the Inspectorate of Government revealed over a year ago that the country loses up to UGX 10 trillion to thieves every year, the spotlight has been on Parliament where allegations of cash bonanza involving staff in the Speaker’s office and Parliamentary Commission have evolved. President Museveni who re-echoed his threats against the corrupt, told the nation that “ababi bafude” literally means that the thieves are going to die. He insisted that his government is going to “crash” those who plunder national resources. I have been getting good information about corrupt actors among the public servants but also among the political actors. With firm evidence, I will crush these traitors. Public servants and political leaders that steal Government money are corrupt and will be crushed, said Museveni The President added the corruption tendencies between officials from the Ministry of Finance and some actors within Parliament also involves Accounting Officers of Ministries, Departments and Agencies (MDAs) at the time requests for money are made. He did not substantiate whether this is done during the normal budgeting process or during times of supplementary budgets which are always approved with ease despite minority reports to the Budget Committee recommendations. While pointing fingers at Parliament as a center of corruption, Museveni also informed Ugandans that some of his trusted workers in the President’s Office and State House have also licked the fingers of the corrupt. I have been hearing that people even in my office take bribes from people to bring people to see me. Can you imagine but fortunately recently, we arrested one of them. He is alleged to have extorted shares and money from an investor who was coming from somewhere, and is now in court. I have been hearing stories that there is a racket from the Ministry of Finance to Parliament but now I have proof. I have been hearing that from the Ministry of Finance they arrange with Accounting Officers of Ministries to come to Parliament working with some people there to provide some funds provided that you take a share, the President added. Corruption has three faces Museveni described corruption in Uganda as being perpetrated by three kinds of people namely; the dishonesty, the traitors and the mistake makers. In his view, the traitors and dishonest people have been more corrupt because they take bribes from foreigners to promote their interests in the country. In what looked like stinging opposition leader, Robert Kyagulanyi alias Bobi Wine who has taken responsibility for pushing for sanctions against Speaker Anita Among and former Ministers Mary Goret Kitutu and Agnes Nandutu over corruption related matters, the President attributed dishonesty to careerist politics that has taken root in the country. There are, however, other actors that get bribes from foreigners to work for foreign interests. These are both corrupt and traitors and we are monitoring their activities. If they do not stop; and with evidence, we shall deal with them. As part of fighting corruption, it is crucial to save the amateurish political actors who come into politics without knowing that leading people does not mean carrying them on your head. It means that you show them the way, the President noted. The United Kingdom’s Government last month issued sanctions against Speaker Anita Among and the two former Ministers citing their involvement in stealing iron sheets meant for the underprivileged people in Karamoja. There has been back and forth between the Government of Uganda and Westminster over whether indeed, Speaker, Among owns a house in London. On sanctions The President who has been known for his stance on adoring the western powers by Africans insisted that Uganda cannot be threatened by anyone. Museveni, a campaigner for pan-Africanism said Uganda is ready to repel any threats by foreign actors. These foreigners don’t know Uganda, they don’t know us. They don’t know how strong we are, we are patient and we don’t over spend our energy. Those who threaten us, you are wasting your time. Don’t come with threats. Uganda is a land of martyrs but also heroes because the martyrs don’t shoot back. On the 3rd [June] we celebrated martyrs day and on the 9th [June] you come we are celebrating heroes, charged Museveni. On the economy While the President did not dwell much on the economic progress of the country by addressing achievements sector by sector, he praised the NRM Government for its visionary agenda since its start as a students’ movement in the 1960s. Giving a historical accountability on what he and his colleagues stood for, Museveni revealed that dealing with issues of prosperity and strategic security has fed into the four core principles of the NRM. These principles are; Pan-Africanism, Democracy, Socio-Economic Transformation and Patriotism. Describing these as part of a good ideology of his leadership, Museveni told Ugandans that the economy has grown well since 1986 save for the setbacks caused by the global pandemic of Covid-19. He said the different phases of economic growth have been significantly seen in; the minimum economic recovery phase of restoring aspects of the small, colonial enclave money economy of cotton, coffee, copper, tea, tobacco and tourism; expanding that enclave with the more production of coffee, tea; the diversification of the enclave economy by commercializing the production of bananas, cassava, milk, fruits, palm oil, cocoa, fish, beef; adding value to some of these raw–materials; and, the knowledge
Synthesis Report on Karamoja Regional Strategic Development Plan
In March 2023, H.E President Museveni restated to Gen Salim Saleh, CC-OWC the strategic goal of NRM in Karamoja being To end nomadism and subsistence cattle keeping to transition Karamoja to commercial Livestock keeping and crop farming; Minerals and factories based on Value addition to crops, minerals, and livestock. General Salim Saleh therefore tasked AFLI to support OWC and the Karamoja Professional Association, undertake a deeper analysis of existing reports and development plans in the region to propose a new 10-year regional development plan for Karamoja – “the Karamoja We Want“. This was then discussed with the National Planning Authority (NPA) based on the guidelines provided by the President. The synthesis background research report and the Karamoja Regional Development Plan (KRDP)are the basic documents that contain ideas and proposals for moving Karamoja “from crisis to growth”. These were developed as inputs to the NPA 10-year regional development plan for Karamoja.
Executive Order 03 of 2023 On the ‘Balaalo’ – Migrant cattle keepers, and Anti-cattle Rustling efforts in Northern and North-Eastern Uganda.
The arrival of the “Balaalo” – southern migrant cattle farmers into Northern Uganda has been portrayed by some stakeholders as an unwelcome invasion that must all be evicted therefore necessitating HE the President to issue Executive Order 3 of 2023. Yet to the contrary, others still have portrayed them as a major economic opportunity if well harnessed. This OWC-AFLI report presents the views and opinions of different key actors and insights gleaned from the various document reviews, key stakeholder meetings, and analysis of the five inter-related topical issues that are explicitly or implicitly contained in the President’s Executive Order No. 3 of 2023. It seeks to provide recommendations through which the ‘Balaalo’ problem can be turned into an opportunity for the development of the livestock industry in Northern and Northeastern Uganda, how commercial charcoal burning ended, effective land use enhanced, land conflicts resolved, and war debt compensation completed.
Report On The Joint Security Mission By Kenya And Uganda
The Joint Security Mission between Uganda and Kenya was initiated due to an appeal by the Kenyan President to the Ugandan President, following complaints from a Kenyan MP about the mistreatment and detention of Turkana pastoralists in Uganda. This appeal also called for strict adherence to a 2019 Memorandum of Understanding (MoU) aimed at promoting cross-border peace and development. In response, both presidents directed a joint team from Kenya and Uganda to visit Moroto, Uganda, to address security concerns. General Caleb Akandwanaho from Uganda was appointed to lead the mission, facilitating discussions to review and align the MoU with current issues and expedite its implementation. During the opening session, General Akandwanaho emphasized the need for honest and open discussions. Uganda’s delegation leader, General Jim Muhwezi, highlighted the importance of harmonious coexistence and cooperation between the two nations, especially in cross-border programs for peace and socio-economic development.
Karamoja Rural Economic Transformation
“Erre” production systems have traditionally been crucial for the livelihoods and cultural identities of ‘Erre’ communities while supporting environmental sustainability. However, they face challenges such as climate change, land degradation, resource limitations, and market constraints. To unlock their potential for sustainable livelihoods and environmental conservation, it is essential to recognize the importance of these systems and implement appropriate strategies. Key strategies include addressing land tenure security, promoting sustainable rangeland management, diversifying livelihoods, building capacities through knowledge exchange, and facilitating market access and value-chain development. Policy support and institutional frameworks recognizing the rights of ‘Erre’ and integrating pastoralism into national development strategies are also critical. By enhancing ‘Erre’ production systems, the Karamojong can strengthen community resilience, well-being, and the conservation of unique ecosystems and cultural heritage. Sustainable ‘Erre’ production should be integral to sustainable development agendas, with efforts focused on supporting and empowering ‘Erre’ communities in preserving and sustainably using natural resources.
Uganda Digital Acceleration Project – Government Network (UDAP GOVNET)
Total: SDR-141.2-Million-Eq.-USD-200-Million The-Proposal-to-Borrow-up-to-SDR-98.8-Million-Eq.-USD-140-Million-and-Secure-a-Grant-Financing-Amounting-to-SDR-42.4-Million-Eq-USD-60-Million-from-the-International-Development-Association (IDA).