Uganda's Infrastructure Investment Promise
Source: International Monetary Fund
Date: 19 July 2017
Description: Drought, slow credit growth, and indirect effects of regional conflict are taking their toll on Uganda, but infrastructure and oil sector investment could boost growth over the next 3–5 years, says the IMF in its annual assessment of the Ugandan economy.
Uganda’s strong performance in the past—largely attributed to sound policy decisions and a reliance on the private sector as the main engine of growth—helped reduce the poverty rate by more than half. But the country’s economy has slowed since 2010, and conditions for the average Ugandan are not improving fast enough. The report shows social spending is set to decline as a share of GDP and is below average for the region.
The government is working to return Uganda to higher growth rates and move the country towards middle-income status. The development strategy is focused on addressing infrastructure bottlenecks by building hydropower plants, a modern road network, and railways. In addition, Uganda is developing oil fields with an international consortium of oil companies.