President Museveni has met with the Director of the African Department at the International Monetary Fund (IMF), Mr. Abebe Aemro Selassie, at State House, Entebbe, for discussions on Uganda’s economic performance and strategies to broaden the country’s tax base.
During the meeting, President Museveni briefed the IMF official on the state of the economy, expressing confidence in continued growth driven by value addition.
“The economy is doing well and will do even better,” the President said, noting that Uganda’s economy is growing at about seven percent annually and has potential for stronger expansion through increased value addition.
President Museveni said long-term economic transformation must be anchored on strong defence and security institutions, arguing that stability is a prerequisite for development.
“Africa has suffered from misplaced priorities. Without strong defence and security structures, there can be no sustainable development,” he said.
The President reiterated Uganda’s policy position that wealth creation should be led by the private sector rather than state-owned enterprises.
“Some people argued that government companies should lead the economy, but we rejected that. The main economy should be driven by the private sector,” he said.
He emphasised the need to lower the cost of doing business by addressing key production inputs, including electricity, internet services, fuel, particularly jet fuel, as well as transport infrastructure such as railways and pipelines.
President Museveni urged the IMF to support measures that reduce business costs and strengthen productive sectors, especially manufacturing and agriculture.
He also pointed to the need for affordable, long-term financing for manufacturers and farmers, highlighting the role of the Uganda Development Bank in providing patient capital.
On markets, the President said that while domestic demand is growing, access to external markets remains critical for sustaining growth.
“We must add value to what we produce. As the economy grows at seven percent, it will grow even more with value addition,” he said.
Mr. Selassie commended Uganda’s growth trajectory, describing the country as one of the few on the continent to have sustained consistent economic expansion over time.
He encouraged continued reforms aimed at expanding the economy and strengthening domestic revenue mobilisation, particularly through broadening the tax base.
