IMF representative speaks on Uganda economy and EA integration
While addressing NRM members of parliament at Kyankwanzi National Leadership Institute, Dr. Thomas Richardson, senior IMF representative to Uganda observed that Uganda has one of the fastest growing economies in the world. Uganda’s future economic growth was recently lowered to about 5 percent because of the difficulties being experienced in the country.
Five percent growth rate falls far short of the 8-9 percent growth rates required as minimum to meet Millennium Development Goals (MDGs) by 2015. Countries like South Korea that transformed their economies and graduated to developed country status grew at 9 percent for many decades. Dr. Richardson observed correctly that agriculture has played a small part in Uganda’s economic growth. Given that some 90 percent of Ugandans earn their livelihood in agriculture, the sector should receive top priority attention.
The government with external support has focused on services and industry which are located mostly in the Kampala area and are capital-intensive, creating virtually no jobs. It’s no wonder that some 70 percent of Uganda’s GDP is generated in the Kampala area.
When we talk about industry we need to specify whether we are talking about manufacturing industries or industries in general like tourism industry. Uganda needs manufacturing industries to contribute to structural transformation and transition to a middle income nation.