Uganda Anchors Economic Growth on Agro-industrialisation

Uganda has identified agro-industrialisation, tourism development, mineral development including oil and gas, and technology and innovation as the main pillars for its economic expansion in the 2024/2025 financial year.

The strategy aims to drive growth in the landlocked country of more than 45 million people, where agriculture still employs the majority of the workforce. Finance Minister Matia Kasaija outlined the priorities while presenting the budget framework for the fiscal period that began on 1 July 2024.

Agro-industrialisation forms a central part of the approach. It seeks to add value to agricultural produce through processing, which could increase export revenues and create jobs beyond raw commodity sales. Uganda produces coffee, tea, cotton, and a range of food crops, yet much of the output leaves the country with limited processing.

Tourism development represents another growth driver. The sector has recovered from the effects of the global pandemic, drawing visitors to national parks, mountain gorilla habitats, and lakeside destinations. Officials hope sustained investment will broaden the industry's contribution to gross domestic product.

Mineral development, including the nascent oil and gas sector, is also expected to play a larger role. Uganda has discovered commercially viable petroleum reserves in the Albertine Graben region along its western border with the Democratic Republic of Congo. Construction of pipelines and related infrastructure was under way at the time of the budget announcement.

Technology and innovation complete the four-pillar strategy. The government views digital transformation and local innovation as essential to modernising the economy and improving efficiency across sectors.

The minister indicated that these four areas would collectively support Uganda's longer-term goal of reaching a US$500 billion economy. Such expansion would mark a significant increase from the country's gross domestic product at the time of the announcement, which stood well below that threshold.

Uganda's economy has historically relied on agriculture, remittances, and foreign aid. Shifting emphasis toward industrialisation and value addition reflects a policy effort to reduce vulnerability to commodity price swings and external shocks. The 2024/2025 budget framework, presented in mid-June 2024, set the tone for resource allocation across government ministries in the subsequent 12 months.

Based on reporting by The Independent UG.