President Yoweri Kaguta Museveni today hosted Mr. Abebe Aemro Selassie, Director of the African Department at the International Monetary Fund (IMF), at State House, Entebbe, where the two leaders held discussions centred on Uganda’s economic performance and strategies to widen the country’s tax base.
During the meeting, President Museveni briefed Mr. Selassie on the state of Uganda’s economy, expressing confidence in its continued growth. “The economy is doing well and will do even better,” President Museveni stated, noting that Uganda’s economy is currently growing at approximately seven percent annually and is poised for further expansion, particularly through value addition.
President Museveni also emphasised that sustainable economic transformation must be anchored on strong defence and security structures. “Africa has been messed up by doing things which are not critical. If you are not dealing with defence and security and you have scout movements and you call them an army, what are you doing? Without a strong army, there is no development,” he said.
The President further reiterated Uganda’s long-standing position that wealth creation should be driven by the private sector rather than state-owned enterprises. “Some people said parastatals or government companies should lead the economy, but we rejected that. We said the main economy should be in the hands of the private sector,” he noted.
He underscored the importance of creating an enabling environment for private sector growth by addressing key production costs such as electricity, internet, fuel particularly jet fuel as well as affordable railway transport and pipeline infrastructure.
President Museveni called on the IMF to focus on supporting measures that lower the cost of doing business and strengthen productive sectors, especially manufacturing and agriculture. He also highlighted the need for affordable financing to support manufacturers and farmers, pointing to the role of the Uganda Development Bank in providing patient capital.
On markets, he stressed that while Uganda’s internal market is growing, access to external markets remains crucial. “We must add value to what we produce. As the country grows at seven percent, it will grow even more with value addition,” he said.
IMF Commends Uganda’s Growth:
Mr. Selassie commended Uganda for its sustained economic transformation, describing it as one of the few African countries that have maintained consistent growth over time.
He encouraged continued economic reforms aimed at expanding the economy further and strengthening domestic revenue mobilisation through widening the tax base.
The meeting reaffirmed the continued partnership between Uganda and the IMF in advancing macroeconomic stability and sustainable development.