Ramathan Ggoobi, Uganda’s Secretary to the Treasury, delivered a keynote address at the 2024 UK-Africa Summit, outlining Uganda’s strategic vision to drive economic growth and expand foreign direct investment (FDI). Ggoobi emphasized Uganda's economic resilience, recovery, and ambitious initiatives to transform the country into a $500 billion economy by 2040.

Uganda’s Economic Resilience and Growth

Ggoobi reported Uganda’s strong recovery from global economic challenges, with a GDP growth rate of 6.7% in the last quarter and projected annual growth of 6%—well above the Sub-Saharan Africa and global averages. Uganda’s exports surged to $7.5 billion, up from $4.9 billion in 2023, while FDI inflows reached $3.01 billion by April 2024. This solidified Uganda’s position as one of Africa’s top destinations for foreign investment.

The "ATM" Strategy for Growth

Uganda’s development plan focuses on four priority sectors, which Ggoobi termed the "ATMs":

1. Agro-Industrialization: Leveraging Uganda’s agricultural sector by creating value-added products for local and global markets.
2. Tourism: Capitalizing on Uganda’s biodiversity and cultural heritage to become a leading tourist destination.
3. Mineral-Based Industrialization (including oil and gas): Harnessing Uganda’s rich mineral resources to fuel industrial growth.
4. Science, Technology, and Innovation (STI): Advancing ICT and technological innovation to diversify Uganda’s economy.

These sectors are the foundation of Uganda’s vision to become a $500 billion economy by 2040.

Infrastructure Development and Investment Opportunities

Ggoobi invited international investors to participate in Uganda’s transformation through infrastructure projects in areas such as:

• Roads, bridges, and railways
• Airports and industrial parks
• Energy infrastructure, including electricity generation and distribution

With an average return on investment of 14%, Ggoobi stressed Uganda’s attractiveness as an investment destination. Sectors such as healthcare, education, water supply, and urban development also offer strategic investment opportunities.

Deepening Uganda-UK Economic Ties

Ggoobi highlighted the strong trade and investment relationship between Uganda and the UK. In the last financial year, bilateral trade exceeded $100 million, with coffee, bananas, and precious minerals as key Ugandan exports. The UK is Uganda’s second-largest FDI source, contributing $1.1 billion, or 37% of Uganda’s total FDI inflows, with UK-based companies playing vital roles in agro-industrialization, ICT, healthcare, and tourism, creating over 80,000 jobs.

Enhancing Uganda’s Financial and Business Environment

To attract more global investors, Ggoobi outlined recent reforms aimed at improving Uganda’s business and financial environment:

• Capital Markets Development: Uganda launched a Deal Flow Facility to support SMEs in becoming investment-ready.
• Tax Reforms: New exemptions on private equity income and capital gains from government securities have been introduced.
• Business Formalization and E-Government: Simplified licensing and integrated e-government services are making it easier to do business in Uganda.
• Risk Management and Debt Sustainability: With a debt-to-GDP ratio of 47.9%, Uganda maintains fiscal and monetary stability for investors.

Looking to the Future: Uganda’s Vision for 2040

Ggoobi reaffirmed Uganda’s commitment to achieving its Vision 2040 goals, positioning Uganda as a regional economic powerhouse. With stable governance, a liberalized economy, and strategic investments in critical sectors, Uganda offers significant opportunities for global partnerships.

As Uganda embarks on its journey of industrial development and economic transformation, Ggoobi emphasized the government’s readiness to collaborate with international investors for mutual prosperity.