Uganda’s economy is expected to grow 6.3 per cent in the financial year starting in July, International Monetary Fund (IMF) said, the same pace predicted for this year, as delays to oil production and domestic and regional political tensions drag on prospects.

The country’s central bank has said the economy needs to expand by at least seven per cent a year in order to provide jobs as its young population enters the workforce. Uganda’s next financial year runs from July 2019 to June 2020.

In its latest assessment of Uganda’s economy, IMF said business sentiment remained strong amid favourable monetary policy conditions, and that public infrastructure investments could help push growth to seven per cent in the medium term.

“The main risks to the outlook are unfavourable weather conditions, domestic and regional political tensions, and further delays in the start of oil production,” IMF said.

Uganda is due to hold its next presidential elections in 2021. President Yoweri Museveni, 74, is likely to face off with pop-star-turned lawmaker Bobi Wine, 37.

Security forces have been using tear gas and water cannon to break up rallies by Wine and other Museveni opponents as authorities move to blunt their momentum ahead of the poll.

Domestic tensions have been joined by regional worries. In February, Rwanda begun blocking Ugandan goods from entering its territory while also stopping its nationals from crossing into Uganda.

Source: Media Max

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