Uganda’s economy has recorded strong growth under the leadership of the NRM Government, with international recognition as one of the fastest-growing economies in the world, Minister of State for General Duties, Henry Musasizi, said at the official opening of the Private Sector Development (PSD) Programme annual review at Mestil Hotel in Kampala on Thursday.
Minster Musasizi noted that macroeconomic indicators reflect resilience and stability, making Uganda increasingly attractive to investors.
“Financing to the private sector has expanded significantly through initiatives such as the Uganda Development Bank capitalization, which exceeded UGX 1.5 trillion over the past five years, Emyooga (worth over UGX 500 billion), and UGX 3.26 trillion through the Parish Development Model (PDM), reaching millions of beneficiaries and deepening financial inclusion and wealth creation,” Musasizi said.
The Minister emphasized that Uganda’s ambitious Tenfold Growth Strategy, integrated into the National Development Plan IV (NDP IV), aims to grow the economy ten times to USD 500 billion by 2040.
He highlighted that the PSD programme must enhance delivery capacity to achieve this goal.
“This annual review is timely, as it allows us to prepare for the road ahead. Our focus will be intentional and results-driven,” he said, noting key priorities such as cheaper and accessible credit, financial inclusion, managing arrears, private sector capacity building, and formalization of businesses. Musasizi also officially launched the PSD Programme Implementation Action Plan.
Representing PSST Dr. Ramathan Ggoobi, the Director of Economic Affairs, Moses Kaggwa, said the meeting offered an opportunity to reflect on the PSD programme’s implementation over the past five years and identify improvements for NDP IV.
Dr. Ggoobi highlighted that government institutions and private sector actors have worked together under the PSD programme to increase competitiveness and drive sustainable, inclusive growth. He outlined five key objectives of the programme:
- Lowering the cost of doing business sustainably
- Strengthening private sector capacity to drive growth
- Promoting local content in public programmes
- Enhancing government’s role in unlocking investment in strategic sectors
- Strengthening the enabling environment and enforcing standards
According to Dr. Ggoobi, the programme has achieved notable successes, such as increasing non-commercial lending to key growth sectors from 1.5% of GDP in 2018/19 to 4% today. However, he noted challenges remain, with the informal sector’s share of the economy rising to 54.75% from 51% over the same period.
He urged stakeholders to reflect on lessons from NDP III and make necessary adjustments to improve the PSD programme’s effectiveness under NDP IV.
“We will continue to work with all MDAs and other stakeholders to tackle the key factors that inhibit private sector growth,” Dr. Ggoobi said.
