NICKSON MABERI
- Key highlights of NRM Manifesto
- Uganda’s economy is on the climb with an impressive GDP growth rate of 6.8 percent in the first two quarters of FY2022/23.
- Poverty has marginally decreased, and initiatives like the Parish Development Model are expected to further reduce poverty gaps.
- Inflationary pressures have started to ease after a surge in international commodity prices.
- Jobs creation has shown a positive recovery, although numbers fall short of the 1,040,000 target.
KAMPALA –In an update on the implementation progress of the National Resistance Movement (NRM) Manifesto for the period of 2021 to 2026, Lydia Wanyoto-Mutende, a board member of the National Planning Authority (NPA), highlighted the achievements and challenges faced by the government.
Despite the adversities posed by the COVID-19 pandemic and the Russia-Ukraine conflict, the Ugandan economy has demonstrated remarkable resilience, Wanyoto told Prime Minister Robina Nabbanja, minister of Finance, Planning, and Economic Development, Members of Parliament, and director Manifesto Implementation, in her speech during the closure of the manifesto week in Kampala recently.
She said the first two quarters of the financial year 2022/23 witnessed an impressive average GDP growth rate of 6.8 percent, surpassing the previous fiscal year’s growth rate of 4.7 percent.
“This positive trajectory is projected to continue, with a growth rate of 5.5 percent expected by the end of FY2022/23, and even higher growth rates of 6 percent and beyond from FY2023/24 onwards,” she added.
She said the economic recovery can be attributed to robust macroeconomic policy management, gradual reduction in inflation, and the implementation of government-supported initiatives aimed at strengthening household economic activities. Additionally, Uganda has witnessed a significant inflow of Foreign Direct Investment (FDI) as it moves towards the production of its first oil.
While progress has been made, she said, poverty rates have only marginally decreased from 21.4 percent in FY2016/2017 to 20.3 percent in FY2019/2020. However, the effective implementation of the Parish Development Model and other affirmative action interventions by the government are expected to contribute to further poverty reduction, she said.
Inflationary pressures caused by disruptions in global supply chains, especially in energy and food prices, have been a challenge. However, these pressures have started to ease, with inflation dropping from double digits in January 2023 to 8.0 percent in April 2023, she said, adding that government aims to continue reducing the cost of power to less than US 5 cents per kWh to support industrialization efforts.
The NRM Manifesto focuses on five broad objectives: broadening the economic base, creating an integrated and self-sustaining economy based on import substitution and export-oriented growth, establishing a monetized and formalized economy, achieving a lower middle-income status, and generating productive jobs. Progress has been made in these areas.
The agricultural sector has shown significant improvement, she said, with steady growth rates ranging from 2.8 percent to 5.3 percent compared to previous years. “The government aims to prioritize the development of industrial parks to attract investors and lower the cost of power for small and mid-sized industrial users,” she said.
“To benefit from the African Continental Free Trade Area (AfCFTA), the government is addressing challenges such as reducing the high costs of doing business, meeting import countries’ standards, and addressing non-tariff barriers to trade. Uganda aims to boost exports, create jobs, and enhance transport and logistics services in the region,” she added.
Efforts have also been made to establish a monetized and formalized economy, with a reduction in households depending on subsistence agriculture. Uganda’s income per capita has increased, and the country is on track to achieve middle-income status.
While the share of the national labor force employed in non-subsistence jobs has improved, the overall job creation target of 1,040,000 jobs has not been fully met, she said, adding that the government is focusing on enforcing bilateral agreements regarding the outsourcing of labor to address unemployment issues.
