KAMPALA: Uganda has increasingly regained its position among the top ten best tourism destinations globally, according to the Minister of Finance, Planning and Economic Development, Matia Kasaija. In his Budget Speech for the Financial Year 2024/2025, Kasaija revealed that international tourist arrivals surged by 56 percent to 1.274 million in 2023, up from 814,085 arrivals in 2022 and approaching the peak of 1.52 million in 2019. Themed “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation, and Market Access,” Kasaija’s speech highlighted robust government interventions aimed at boosting the tourism sector.
Kasaija noted that “international tourism receipts reached USD 1.03 billion in 2023,” emphasizing that tourism has a high return on investment. For FY2024/25, he has allocated Shs 289.6 billion to tourism development programs “to support international and domestic tourism marketing and promotion activities.”
Minister announces multi-billion-shilling investment in sector revival
This funding will also modernize tourism products to enhance their competitiveness, such as completing the pier and related infrastructure at the Source of the Nile, upgrading the Uganda Museum, and constructing 8,000 meters of climbing ladders and boardwalks on the Rwenzori Mountains to make hiking safer.
Additional initiatives include grading, supervision, and classification of tourism facilities to ensure adherence to global standards, completing the upgrade of the Uganda Hotel and Tourism Training Institute to make it an International Centre of Excellence, and enhancing the conservation of Uganda’s 22 Wildlife Protected Areas. Efforts to mitigate human-wildlife conflicts will see the construction of an additional 150 kilometers of electric fence and maintenance of the existing 106-kilometer fence, along with boundary surveillance through over 13,904 patrols, uprooting invasive species, and constructing four water dams in protected areas.
Beyond the direct allocation to the tourism sector, Kasaija mentioned that an additional Shs 1.629 trillion has been provided for critical interventions associated with tourism. These include support to the Uganda Wildlife Authority, construction and rehabilitation of tourism roads, support to AFCON 2027 and completion of key stadia, strengthening security, and extending internet access to tourism destinations. An additional Shs 55 billion has been allocated to Uganda’s Missions Abroad to support the Uganda Tourism Board (UTB) in marketing Uganda to potential tourists, promoting exports, and attracting investors.
Kasaija also underscored the importance of Science, Technology, and Innovation (STI) as a catalyst for economic growth. Highlighting investments in this sector, he noted the achievements of Kiira Motors Corporation (KMC). The government has supported KMC in constructing a manufacturing plant in Jinja Industrial Park with the capacity to produce 2,500 vehicles annually. The plant, equipped for bus and truck body manufacture, vehicle painting, powertrain manufacture, and production quality inspection and testing, has so far produced 39 buses, including 27 electric and 12 low-emission diesel buses.
Kiira Motors Corporation has received orders for over 100 buses from countries such as Tanzania, South Africa, Eswatini, and Nigeria, demonstrating the market potential for these vehicles. KMC currently employs 168 people and is expected to increase this number to 600 once the plant is fully operational. The government will support Kiira Motors with an additional Shs 32.5 billion next financial year to complete the plant and provide working capital.
Kasaija’s budget speech underscores the government’s commitment to enhancing Uganda’s tourism sector and leveraging science, technology, and innovation to drive economic growth, reflecting a comprehensive approach to fostering sustainable development and prosperity.
