Uganda’s Finance Minister Matia Kasaija said here Thursday the country’s economy will grow 6 percent in fiscal year (FY) 2021/22, which started on July 1.
The growth will be driven by a robust finance strategy that mainly focuses on enhancing domestic revenue from about 13 percent now to 18 percent in the next five years, Kasaija said during the National Budget Conference held on Sept. 15-17.
The country also plans to limit external borrowing to sustainable levels while prioritizing concessional funding and reappraising public investment needs, he said.
The Ugandan government will reduce the level of domestic financing from 3 to 1 percent of the gross domestic product to reduce the costs of debt servicing and crowding out the private sector, he said.
He added that other strategies will involve addressing potential health and economic impacts of COVID-19 and other natural disasters.
“We shall aim to protect as well as create more jobs while focusing on agricultural production and agro-industrialization,” Kasaija said.
“The economy will be in position to create 50,000 quality jobs, especially for our young people,” he said.
In FY 2019/20, the country’s economic growth slowed to 3.1 percent due to the impact of the COVID-19 pandemic, according to the ministry.