The Republic of Uganda

________________________________
BUDGET SPEECH
FINANCIAL YEAR 2024/2025
_________________________________

Theme: Full Monetisation of Uganda’s Economy through

Commercial Agriculture, Industrialisation, Expanding and
Broadening Services, Digital Transformation and Market
Access.

Delivered By

MATIA KASAIJA (MP)

MINISTER OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT

Thursday 13th June 2024

Kololo Independence Grounds

PREAMBLE
Your Excellency the President,
Your Excellency the Vice President,
Right Honourable Speaker of Parliament,
Your Lordship the Chief Justice,
Right Honourable Deputy Speaker of Parliament,
Your Lordship the Deputy Chief Justice,
The Vice Chairman of the NRM Party,
The Right Honourable Prime Minister,
The Honourable Leader of the Opposition,
Honourable Ministers,
Honourable Members of Parliament,
Your Excellencies, the Ambassadors, and Heads of Diplomatic
Missions,
Distinguished Guests,
Ladies and Gentlemen.

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 1. INTRODUCTION

1. Madam Speaker, in fulfilment of Article 155(1) of the

Constitution and on behalf of His Excellency the President, I
rise to present to Parliament and to the nation at large, the
Budget for the Financial Year 2024/2025 as approved by
Parliament.
2. Madam Speaker, I want to start by thanking H.E the
President for once again demonstrating a vote of confidence
in me by extending my mandate as the Minister responsible
for Finance, Planning and Economic Development, together
with my entire political team at the Ministry.
3. Madam Speaker, I congratulate H.E. the President for
successfully hosting the 19th Summit of the Non-Aligned
Movement (NAM) and the Third South Summit of the
G77+China, and assuming the Chairmanship of both in
January 2024.
4. Madam Speaker, according to the 2024 Annual Investment
Meeting (AIM) held in Abu Dhabi, United Arab Emirates,
Uganda is now the best investment destination in Africa.
5. Madam Speaker, His Excellency the President declared the
2021–2026 political term, a “Kisanja for socio-economic
transformation”. He guided that Government and the entire
country should focus on creating jobs, wealth, and
increasing household incomes.
6. The Budget for FY 2024/25 is the fifth, and therefore the
last to implement the Third National Development Plan
(NDPIII). It will also set the foundation for implementing the
Government’s strategy for expanding the size of our GDP
from about USD 50 billion in FY2022/23 to USD 500 billion
by the year 2040.
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7. In order to consolidate the gains so far achieved, the theme
for the coming financial year has been maintained as: “Full
Monetisation of the Uganda’s Economy through
Commercial Agriculture, Industrialisation, Expanding
and Broadening Services, Digital Transformation and
Market Access”.
8. Madam Speaker, in this Speech, I will:
i) Account to Parliament and the people of Uganda for the
commitments that Government made for the
FY2023/2024 that is coming to an end in a few days;
ii) Provide an outlook for the medium-term economic
performance;
iii) Summarise the medium-term priorities and strategies
for growing the economy tenfold starting with FY
2024/2025; and
iv)Present the financing strategy for the FY 2024/25
Budget.

II. RECENT ECONOMIC PERFORMANCE

9. Madam Speaker, I am pleased to report that Uganda’s

economy has fully recovered from various internal and
external shocks that impacted performance in the past four
years. GDP is projected to grow by 6 percent this financial
year 2023/24 compared to 5.3 percent in FY2022/23. This
year’s growth of 6 percent is even more impressive when
compared to Sub-Saharan Africa’s average of 3.8 percent,
and the global average of 2.9 percent projected for the year
2024.

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10. As a result of this robust growth, the size of the economy is
now estimated at Shs 202 trillion (USD 53.3 billion) up from
Shs 184.3 trillion (USD 48.8 billion) in nominal terms. If
Ugandans agreed to share this GDP equally, each citizen
would enjoy a GDP per capita of USD 1,146 compared to
USD 1,081 registered last Financial Year 2022/23.
11. Madam Speaker, the improved performance of the economy
is on account of higher growth in all sectors. Services,
agriculture, and industry, are estimated to grow at 6.6
percent, 5.1 percent, and 5.8 percent, respectively, in
FY2023/24. In particular, growth in the services sector has
been impressive, mainly driven by strong recovery in retail
and wholesale trade, tourism as well as communication and
real estate activities.
12. Growth in industry was mainly driven by manufacturing,
construction and mining, while increased production of food
and cash crops, as well as livestock supported growth in the
agriculture sector. Agriculture’s performance, estimated to
have expanded at 5.1 percent this year compared to 4.5
percent registered in FY2022/23, is attributed to
streamlined implementation of the Parish Development
Model (PDM); and fairly good weather conditions.
13. Other factors which supported strong economic growth
include:
i) Low inflation and relatively stable exchange rate which
have allowed good investment planning and supported
export competitiveness;
ii) Increased investments in the oil and gas sector related
projects, supported by Foreign Direct Investment;

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 iii) Higher external demand for Uganda’s products
including agricultural and industrial products;
iv)Recovery of tourism supported by increased investment
in tourism infrastructure and marketing; and
v) Peace and security for persons and their property.
14. Madam Speaker, in March 2024, Uganda met the
requirements to graduate from the category of Least
Developed Countries (LDCs). Uganda also moved from the
category of low human development to medium human
development. This is a result of consistent improvement in
health, education, economy, and a decent standard of living.
This is a big milestone achieved well before the country
starts earning from oil exports. When oil and gas start to
flow, in FY2025/26, with deliberate value addition to our
raw materials, and productive utilisation of the PDM and
other wealth creations initiatives, attainment of prosperity
for all and socio-economic transformation will be faster.
Inflation
15. Madam Speaker, Uganda has contained inflation. At an
average rate of 3.2 percent in the twelve (12) months to May
2024, Uganda’s inflation is one of the lowest in the region.
Annual headline inflation has reduced from the peak of 10.7
percent in October 2022 to 3.6 percent last month. The
reduction has been a result of good coordination of
monetary and fiscal policies, leading to low inflation for most
food crops, manufactured foods, and essential commodities
like laundry bar soap, sugar and cooking oil.
Interest Rates

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16. Madam Speaker, the commercial bank lending interest rates
for shilling-denominated credit reduced to 17.7 percent in
April 2024 compared to 19.3 percent in April 2023. Interest
rates in the domestic debt market have remained broadly
stable averaging 11.2 percent on the one-year Government
Treasury Bills.
17. To further reduce lending rates, Government will continue to
provide long-term affordable capital through various
interventions. In particular, Government will continue to
capitalise the Uganda Development Bank, the Parish
Development Model, the Agricultural Credit Facility, and the
Small Business Recovery Fund to provide capital for wealth
creation.
18. Government is also continuing with capitalisation of the
Emyooga Fund to support micro enterprises, as well as the
Presidential Skilling and Industrial Hubs for the youth.
Grants will also be extended to women in business through
the Generating Growth Opportunities and Productivity for
Women Enterprises (GROW) project. For exporters of
manufactured products who face working capital challenges,
the Investment for Industrial Transformation and
Employment (INVITE) Fund worth USD 210 million (Shs 800
billion) is going to kick-off next financial year.
Private Sector Credit
19. Madam Speaker, private sector credit increased to Shs 21.54
trillion in April 2024 from Shs 20.47 trillion in April 2023,
an increase of 5.2 percent. There has also been a slight
increase in the share of credit going to productive areas of
the economy. For example, the share of credit going to
agriculture increased slightly to 11.3 percent by April 2024

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 compared to 11.1 percent by April 2023, while the share of
credit to manufacturing remained the same at 13.4 percent

Exchange Rate
20. Madam Speaker, despite the depreciation pressure on the
shilling since the beginning of this year, the value of our
currency has remained largely stable against key global
currencies. Between May 2023 and May 2024, the official
exchange rate against the US dollar has averaged Shs 3,771.
The depreciation pressure, on the account of exit of some of
the offshore investors searching for more attractive interest
rates offered on government papers in competing markets,
has been contained thanks to our good export performance
and Foreign Direct Investment (FDI) inflows.
External Trade
21. Madam Speaker, Government’s Export Promotion Strategy
has continued to produce positive results. During the year
ending April 2024, Uganda’s exports increased by USD
2.534 billion to USD 7.471 billion compared to USD 4.938
billion in April 2023, representing a 34 percent growth. This
increase was largely driven by increased exports of gold
(75.7 percent), coffee (21.9 percent), oil re-exports (21.8
percent), sim-sim (20.2 percent), tobacco (10.3 percent),
cotton (6.9 percent), and light manufactured products (4.9
percent). The major destinations of our exports are the East
African Community (EAC) countries which account for 29
percent, COMESA 29 percent, Middle East 24 percent, and
Asia 20 percent.

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22. Madam Speaker, efforts to increase value addition to exports
have continued to yield positive results. Exports of
manufactured products have continued to be significant
contributors of export earnings. In particular, in 2023,
cement exports reached USD 91.1 million, sugar USD 75.8
million, plastic products USD 62.6 million, soap USD 33.9
million, beer USD 25.8 million. This Financial Year
2023/24, efforts to increase export performance have been
strengthened through investing in targeted value addition
initiatives and implementing several enabling trade policies.
23. Madam Speaker, in the financial year ending, Uganda
imported goods worth USD 12.9 billion compared to USD
10.3 billion in the year ending April 2023. This increase in
imports was largely driven by an increase in private sector
imports of 23 percent, mainly to develop our nascent oil and
gas sector.

Foreign Direct Investment, Remittances, and Tourism

24. Madam Speaker, the inflow of Foreign Direct Investment
(FDI) to Uganda amounted to USD 2.46 billion in
FY2022/23 and by December 2023/24, additional FDI
amounting to USD 1.27 billion had been attracted.
Remittances by Ugandans living and working abroad
increased to USD 1.43 billion in calendar year 2023 from
USD 1.3 billion in 2022. Tourism revenues increased to USD
1.28 billion in calendar year 2023 from USD 1.07 billion in
calendar year 2022.

Employment
25. Madam Speaker, job creation ranks top on Government’s
socio-economic agenda. The number of workers subscribing
to the various pension schemes in the country increased to
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 more than 3.14 million members in FY2023/24, an increase
of 4.2 percent compared to 3.01 million members in
FY2022/23.
26. Madam Speaker, the latest reports indicate that the direct
beneficiaries of the Presidential Initiative on Jobs and
Wealth Creation (Emyooga) reached 2,237,402 in December
2023. In the past one year alone, Emyooga funds have
created 378,640 new direct jobs. This was about 40,000
additional new jobs created compared to the new jobs
created in the previous year.
27. On another front, so far, 1.165 million households have
received PDM funds worth Shs 1.126 trillion as of May,
2024, and estimated to create about 2.5 million jobs.
28. A total of 23,083 youth projects have benefitted 263,897
youths under the Youth Livelihood Programme, in areas of
agriculture, trade, services and industry. This has created
over 1,250,000 indirect jobs. Similarly, the National Special
Grant for Persons with Disabilities is supporting 6,282
enterprises, benefitting 49,372 persons with disabilities.
29. Madam Speaker, Government is also going to create more
formal jobs and related livelihoods through a number of
project-funded interventions. Notable among these are the
GROW and INVITE Projects. The GROW Programme is
expected to directly benefit over 8,000 female-owned
enterprises, 280,000 female entrepreneurs and 1.6 million
indirect beneficiaries. Another 200,000 new jobs are
expected to be created from new investments through the
INVITE Project.

Fiscal Performance

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30. Madam Speaker, as a result of our fiscal consolidation
agenda - which is intended to enhance revenue collection,
limit borrowing for only critical and strategic investments,
and control government expenditure - Government’s fiscal
deficit has reduced to 4.5 percent of GDP this financial year
from 5.5 percent of GDP last year.
31. Madam Speaker, the projected domestic revenue outturn for
FY2023/24 is Shs 27.725 trillion against the target of Shs
29.672 trillion, leading to a revenue shortfall of over Shs
1.9 trillion. The Uganda Revenue Authority is working hard
in the remaining days to reduce this shortfall. The revenue
to GDP ratio is estimated at 13.6 percent of GDP in
FY2023/24. Domestic revenue for FY 2024/25 is projected
to amount to Shs 31.982 trillion, equivalent to 14.2
percent of GDP.

III. ECONOMIC GROWTH STRATEGY AND OUTLOOK

32. Madam Speaker, Uganda’s economic outlook is positive and
optimistic. The economy has remained resilient and has
fully recovered from a myriad of internal and external
shocks. Next financial year, the economy is projected to get
back to Uganda’s steady-state growth potential of between
6.4 and 7 percent, and double digit over the next five years.
33. It is projected that next Financial Year, 2024/25, Uganda’s
GDP will further expand to Shs 225.5 trillion (equivalent to
USD 60 billion). These numbers exclude the anticipated oil
and gas revenues as well as the planned interventions to
grow the economy tenfold. We shall update the projections
in the medium term.
34. Madam Speaker, this growth will be driven by:
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i) Increased oil and gas activities as we move towards first
oil production in FY2025/26;
ii) Growth in exports, supported by the increase in regional
trade in the EAC and COMESA, intra-Africa trade, and
harnessing existing and new trading partners in the
Middle East and Asia;
iii) Increase in tourism activities supported by investment
in tourism infrastructure, branding and marketing, and
effective implementation of the Meetings, Incentives,
Conferences and Events (MICE) Programme;
iv)Agro-industrialisation and light manufacturing supported
by access to affordable credit through Uganda
Development Bank (UDB), investments supported
through Uganda Development Corporation (UDC); the
Parish Development Model, Small Business Recovery
Fund, Emyooga, the Presidential Industrial Hubs for
Youth Entrepreneurs, and programmes to support
exporters as well as growth and productivity of women
enterprises;
v) Private investment growth supported by Foreign Direct
Investment, remittances and a stable macroeconomic
environment;
vi)Continued investment in industrial parks, construction
and maintenance of roads and bridges; and
vii) Rehabilitation of the Metre Gauge Railway and
commencement of the Standard Gauge Railway,
expansion of ICT infrastructure, and provision of reliable
and affordable electricity.

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35. Madam Speaker, Uganda’s growth strategy for next financial
year and in the medium term is anchored on four key
growth drivers: (i) Agro-industrialisation; (ii) Tourism
development; (iii) Mineral development including oil and gas;
and (iv) Science, technology and innovation (STI). These are
the anchor sectors that are going to propel Uganda to a 500-
billion-dollar economy in the next one-and-a-half decades.
36. Madam Speaker, our growth prospects face some risks that
will need to be mitigated. These include: (i) climate change
affecting agricultural production and infrastructure, (ii)
regional and global geopolitical tensions, (iii) high interest
rates which constrain access to affordable debt, and (iv)
fluctuations in global commodity prices.
37. To minimise the effects of these risks, Government is
implementing climate change adaptation measures,
exploring cheaper sources of financing including climate
finance, and ensuring frugality in Government expenditure.

IV. ACCOUNTABILITY FOR THE FY 2023/2024

AND PRIORITIES FOR FY 2024/25
38. Madam Speaker, in the National Budget for the financial
year we are ending, 2023/24, that I presented here on June
15th last year, Government made a number of commitments
intended to deliver on NDP III priorities as well as the
promises we made to the people of Uganda under the NRM
Manifesto for 2021–2026. In this section, I provide
accountability for what Government has achieved so far, and
what it intends to do to ensure that our commitments to the
citizens are to large extent fulfilled.

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39. Madam Speaker, I will start with what we have achieved by
investing in the people of Uganda through prioritisation
of healthcare, education, water, sanitation and hygiene.
I have provided Shs 10.216 trillion for these priorities,
which is 27 percent of the national budget as detailed below.

Health
40. Madam Speaker, during this FY 2023/24 the following
milestones have been achieved in the health sector:
i) Government commenced the construction of the East
African Centre of Excellence for Cardiovascular care at
the Uganda Heart Institute located in Naguru and fast-
tracking the completion of the East African Centre of
Excellence for Oncology in Kampala and associated
regional centres in Gulu, Mbarara, Arua and Mbale;
ii) Under the Uganda Inter-Governmental Fiscal Transfers
(UGIFT) Programme, 371 Health Centre IIs were planned
for construction and upgrade to Health Centre III Status.
So far 261 Health Centre IIs have been upgraded to
Health Centre IIIs and are fully operational. An additional
110 are on-going at different stages. Meanwhile, 11
hospitals were rehabilitated, in Busolwe, Kapchorwa,
Kambuga, Buwenge, Koboko, Amuria, Kotido,
Kaberamaido, Kawolo, and Kitgum Districts;
iii) Three regional Blood Banks in Arua, Soroti, and Hoima
have been completed;

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 iv)Government distributed a total of 25 million Long-lasting
insecticide treated mosquito bed-nets countrywide for the
prevention of malaria; and
v) Government also provided 116 new ambulances to 100
constituencies, another 10 ambulances for the Regional
Referral Hospitals and six (6) for the Command Centre at
Naguru; among others.
41. Madam Speaker, to further enhance the health of Ugandans,
a total of Shs 2.946 trillion has been provided next
financial year, 2024/25. The following interventions will be
prioritised:
i. Promotion and implementation of interventions for the
disease prevention and health education initiatives against
communicable, non-communicable and neglected tropical
diseases and injuries;
ii. Provision of essential medicines where an additional Shs 100
billion has been provided;
iii. Improvement of the welfare of the health workers including
medical interns and doctors designated as senior house
officers. I have provided more wage allocations to facilitate
the recruitment of staff for the upgraded HC IIIs;
iv. Construction and rehabilitation of more health
infrastructure and provision of medical equipment to
improve quality of care and provision of specialised
healthcare. These include, among others: the Uganda Cancer
Institute and Regional Cancer Centres; the Uganda Heart
Institute, Intensive Care Units and an imaging centre for
referral hospitals.

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 v. Digitisation of the national health system to facilitate service
delivery and tracking of medical supplies and health workers’
performance.
vi. Construction, rehabilitation and equipping of dilapidated
hospitals across the country including in the Kampala
Metropolitan Area.
vii. Strengthening of the network of medical reference
laboratories including the establishment of the East African
Community Regional Centre of Excellence for Virology at the
Uganda Virus Research Institute, and the National Public
Health Institute in Uganda.
viii. Establishment of a Pharmaceutical Industrial Park; and
strengthening the National Drug Authority Regulatory
Framework.
Education
42. Madam Speaker, Government considers education as a key
opportunity equaliser for Ugandans, equipping them with
knowledge and skills required for productive employment as
well as enabling them to live longer, happier and affluent
lives. For this reason, the following commitments were
prioritised and delivered in FY2023/2024:
i) Skilling in Science, Technology, Engineering and
Mathematics (STEM);
ii) Construction and equipping of 21 laboratories across
the country, in selected secondary schools using the
UPDF Engineering Brigade;
iii) Upgrading learning facilities in 12 Technical Institutes,
and four Vocational Education Centres of Excellence at

15
 Uganda Technical Colleges in Bushenyi, Bukalasa, Lira,
and Elgon; and
iv) Out of 259 seed secondary schools planned under
UGIFT, 105 have been completed and 144 are on-going.
43. Madam Speaker, I have provided Shs 2.497 trillion to
further improve the quality of education, and the following
are among the priorities:
i) Supporting the new curriculum for S1-S4 students;
ii) Operationalisation of all the 111 seed secondary schools
and completing the 27 seed secondary schools under the
UGIFT Programme;
iii) Commencing the construction of 60 secondary schools
and expansion of 61 existing secondary schools under the
Uganda Secondary Education Expansion Project;
iv)Providing loans to 5,192 degree and 1,125 diploma
students who are on the Government-funded loan
scheme, both continuing students and new beneficiaries;
and
v) Government take-over of Bunyoro and Busoga
Universities for inclusive and equitable access to
university education.
Social Protection
44. Madam Speaker, in the year we are concluding Government
has provided social protection as follows:
i) Continued with the provision of the Senior Citizens Grant
to 439,069 older persons across the country amounting
to a cumulative total of Shs 565.7 billion;

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 ii) Under the Special Enterprise Grant for Older Persons
Programme (SEGOP), Government supported 590 group
enterprises benefitting 3,636 older persons;
iii) Under the Youth Livelihood Programme (YLP), a total of
23,083 youth projects have benefitted 263,897 youths in
areas of agriculture, trade, services and industry. This
has created over 1,250,000 indirect jobs; and
iv)Through the National Special Grant for Persons with
Disabilities, Government is supporting 6,282 enterprises,
benefitting 49,372 persons with disabilities.
45. Madam Speaker, Government will continue to support the
welfare of the elderly to keep them healthy and productive to
their communities. While Social Assistance Grant for
Empowerment (SAGE) targets those above 80 years, SEGOP
ensures the inclusion of those in the age bracket of 61 to 79
years.
46. Government will also continue to support the youth and
women beneficiary groups using the recovered funds from
the Youth Livelihood Programme (YLP) and the Uganda
Women’s Enterprise Programme (UWEP). For greater
efficiency, management of the two programmes (YLP and
UWEP) has been unified.
47. Madam Speaker, I have provided an additional Shs 355.79
billion for social protection next financial year.
Water, Sanitation and Environmental Protection
48. Madam Speaker, as a result of Government intervention,
more Ugandans now have access to safe clean water.
Coverage in rural areas is now estimated at 67 percent, and
73 percent in urban areas. Out of 71,225 villages, 56,617

17
 villages have been served with at least one safe water
source.
49. In FY2024/25, clean water coverage will increase to 70
percent and 85 percent in rural and urban areas,
respectively. In the rural areas, the target is to reduce the
distance to the nearest source of clean and safe water for
human and animal consumption to less than one kilometre
while in urban areas to less than 500 metres. The following
are among the priorities we have budgeted for next financial
year:
i) Construction of 52 large solar-powered water supply
systems in 19 districts that are currently at less than 50
percent water coverage. These are Agago, Yumbe, Amudat,
Kaabong, Bulambuli, Buvuma, Buyende, Namayingo,
Rakai, Nakaseke, Sembabule, Kibaale, Kasese, Kyegegwa,
Mubende, Lyantonde, Kakumiro, Kassanda and Kisoro.
ii) Construction of another 15 solar-powered water supply
systems in the Rural Growth Centres of Lwentulege,
Bugwara, Kabamba, Kikoora, Mwitazinge, Lugala, Kitenga,
Bukizibu/Bumwena, Igwaya, Kidera, Bugomolwa, Kitonge-
Nakasero, Kikonge, Kasese and Lubaali. This will cover a
population of over 272,000 persons.
iii) Completion of the construction of 31 town water supply
systems and sanitation facilities in Bulangira, Kanapa,
Aligoi, Opengate Kawo, Karago, Nyakashaka, Buikwe,
Bundibugyo, Kapchorwa, Kamuli, Namasale, Kaliro-
Namungalwe, Butaleja-Busolwe, Budaka-Kadama-Tirinyi-
Kibuku, Kyankwanzi, Butemba, Ngoma, Lunya, Palabek-
Kal (Lamwo), Obongo, Lamwo, Rhino Camp, Arra/Dufile,

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 Amuru, Kole, Alangi, Zeu, Kakingol, Iriiri, and
Lorengacora.
iv) Construction of 17 rural water supply systems in the
refugee-hosting districts of Adjumani, Lamwo, Madi
Okollo, Moyo, Terego, and Yumbe.
v) Progress the construction of 26 water supply systems at
various stages in Manafwa (now at 80 percent), Mukura
(40 percent), Kidera (40 percent), Atutur (40 percent),
Kadungulu (10 percent), Kaproron (10 percent), Iyolwa (20
percent), Bukumi (5 percent), Rubaya - 50 percent,
Bethlehem-Nabigasa Phase 1-50 percent, Kabura-Mwizi
Phase 1 - 50 percent, Mabira - 50 percent, Bukiro - 50
percent, Nyabisirira - 50 percent, Bugarama-Karweru - 50
percent, Rwere-Kateretere - 50 percent, Kagarama-
Bushura-Kibuzigye - 50 percent, Nyanseke (80 percent),
Busaale (95 percent), Kibuzi (100 percent), Adilang,
Puranga (Pader), Kasawo-Phase 1 (5 percent), Kyebando-
Kasimbi (5 percent), Nabilatuk and Losilang.
vi) Increasing the water for production storage capacity for
commercial farmers from 52.6 million cubic metres to 76.8
million cubic metres.
50. Madam Speaker, to support the restoration of our
environment and reverse the effects of climate change,
Government shall undertake the restoration of 42,450
hectares of degraded wetlands along the Awoja, Kandekye-
Ruhorobero, Nchwera, Chambura, Kiruruma, Naigombwa,
Kibimba, Tochi, Aswa, Sezibwa, Mayanja, Muzizi, Mpanga
and Lumbuye water systems.
51. In addition, Government shall demarcate a 750-kilometre
boundary with concrete pillars along the following wetlands;
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 Kibimba, Tochi, Sezibwa, Mayanja, Muzizi, Awoja,
Mpologoma, Ishasha, Kandekye-Ruhorobero, Nchwera,
Chambura, Kiruruma and Naigombwa.
52. A total of 15 million seedlings of assorted tree species shall
be procured and distributed to individual farmers in several
districts, as well as to refugee-hosting communities in the
Albertine region and in West Nile, as well as individual
farmers.
53. Madam Speaker, I have provided Shs 516.78 billion next
financial year for climate change mitigation, natural
resources, environment and water resources management.

INCREASING EFFECTIVENESS OF WEALTH CREATION

INITIATIVES
The Parish Development Model

54. Madam Speaker, the PDM has now been fully rolled out. A
total of Shs 2.4 trillion has so far been provided. The money
is being transferred directly to the beneficiaries in 10,585
parishes across the country. The introduction of the WENDI
Application, by the Government-owned Post Bank and its
partners, has saved beneficiaries the inconvenience of
travelling long distances to open up bank accounts or
withdraw their money. It has also enhanced transparency by
providing full visibility and traceability for all the funds up
to last-mile beneficiary. The extensive mobile telephone

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 coverage (both smartphones and ‘Kabiriti’) has helped to
lower transaction costs for the PDM beneficiaries.
55. Going forward government will deepen the use of WENDI
and other digital technologies and innovations to enhance
financial inclusion and drive efficiency, accessibility, and
effectiveness of the programme. These technologies will
gradually be extended to other wealth creation initiatives.
56. The total of 1.165 million households that have so far
received PDM funds have invested in intensive agriculture
projects that include poultry, dairy, coffee, piggery, fish,
fruits and food crops. In the next few days, I will release the
remaining Shs 529 billion for this financial year directly into
the accounts of the PDM SACCOs. Each PDM SACCO will
continue to receive Shs 100 million.
57. Madam Speaker, Shs 1.059 trillion has been provided next
financial year for an additional Shs 100 million per parish
to benefit more households. Government will also ensure
effective implementation of Pillar One which includes input
certification, provision of extension services, storage, value
addition, and market linkages.
Emyooga

58. Madam Speaker, to-date Government has provided a total of

Shs 480 billion through Emyooga. Out of this, a total of Shs
268 billion has been disbursed to 6,810 Emyooga SACCOs.
The beneficiaries have been able to save Shs 85 billion to
further grow their SACCO funds. As a result, 607,636
individuals across the country have benefitted from the
Emyooga funds, and Shs 80.28 billion has been recovered

21
 from the first-round beneficiaries and it is being advanced to
others.
59. Madam Speaker, in the next Financial Year 2024/25, I have
provided an additional Shs 100 billion under Emyooga to
support more Ugandans to create wealth and boost their
incomes.
Agricultural Credit Facility (ACF)
60. Madam Speaker, since 2009 Government has partnered with
banks to support commercialisation of agriculture through a
credit guarantee scheme that provides up to 50 percent of
the money loaned to a farmer. Cumulatively, Government
has invested Shs 303 billion, causing a cumulative loan
disbursement of Shs 860 billion. This money has enabled a
total of 3,868 agricultural projects to access patient capital
for commercial on-farm investment, post-harvest
management, agro-processing, and trade in agricultural
produce. Next financial year, Government will continue to
capitalise the ACF with an additional Shs 30 billion.
Capitalisation of UDB

61. Madam Speaker, Uganda Development Bank has grown into

a formidable Shs 1.6 trillion bank in assets, providing
patient and relatively affordable capital to those adding
value to agricultural raw materials, manufacturers, as well
as investors in tourism and hospitality, infrastructure, and
education. It has created a total of 51,841 jobs.
62. During FY2024/25, the Bank will continue to provide capital
to businesses involved in value addition, including
promotion of innovation in the areas of science and
technology. It will also support youth-led enterprises,

22
 manufacturers, and also provide working capital to
exporters and those involved in import substitution. Green
financing is also going to be enhanced to ensure climate
adaptation and mitigation. To achieve this, Government is
going to further capitalise UDB with another Shs 55 billion.
Government is also in the process of acquiring for UDB
credit lines worth Shs 1.083 trillion to lend more to wealth
creators.
Support to SMEs
63. Madam Speaker, two years ago, Government set up the
Small Business Recovery Fund (SBRF) to provide soft-loans
to SMEs that had suffered financial distress during COVID-
19. Government provided Shs 100 billion to be equally
matched by banks to extend credit to the target beneficiaries
at 10 percent interest rate. At a disbursement of Shs 18.4
billion so far, supporting 1,459 businesses, uptake of this
fund has been low. Next financial year, Government and
Bank of Uganda are going to relax the requirements to
ensure increased uptake of the SBRF to support SME
growth.
INVITE and GROW Programmes
64. Madam Speaker, Government is also implementing two
programs namely; the Generating Growth Opportunities and
Productivity for Women Enterprises (GROW) worth USD 217
million (Shs 824 billion); and the “Investment for Industrial
Transformation and Employment (INVITE)” worth USD 210
million (Shs 800 billion). These funds are intended to
support women-owned enterprises and value addition for
exports.

23
65. Madam Speaker, Government is also working hard to reduce
the time, cost, and complexity of business registration and
licensing. A Business Facilitation Centre has been set up to
centralise all business/investor-related services to speed up
registration and operationalisation of businesses. Services
that used to require weeks or months are now accomplished
in just a couple of hours. This is going to enhance Uganda’s
competitiveness even further.
AGRO-INDUSTRIALISATION
66. Madam Speaker, Government is committed to
commercialising agriculture to enhance production and
productivity and improve competitiveness of agricultural
products in both regional and international markets. The
following are some of the key milestones achieved during
this financial year in the area of agro-industrialisation:
i. Establishment of an afla-safe facility at Namulonge to help
in the management of aflatoxins in cereals and nuts;
ii. Construction of a local anti-tick vaccine manufacturing
facility, also at Namulonge, to produce vaccines against
tick borne diseases. This will save the country USD1.1
billion which is lost annually due to tickborne diseases,
and tap into the Shs 3 trillion regional market for meat
and milk.
iii. Increased coverage of large-scale farmer mechanisation to
40 percent from 32 percent in FY 2022/23. A total of 240
tractors with all their accessories and additional 750 units
of single-axle tractors were procured and distributed
countrywide. Government also provided a number of
policy/tax related support to the private sector to
mechanise.

24
67. Madam Speaker, in the FY 2024/25 Budget, I have allocated
a total of Shs 1.878 trillion towards deepening agro-
industrialisation with increased focus on commercialisation
and value addition in agriculture. The priority areas include:
i. More investment in research and genetic development of
selected value chains for animal, fish and crop varieties;
ii. Support for pest, vector and disease control and prevention.
In particular I have provided an additional Shs 427.21
billion to procure and distribute 44 million doses of vaccines
against foot and mouth disease. After the current vaccination
exercise, farmers will access the vaccines through
Government Stores by meeting 100 percent cost of the
vaccine, while Government will cover the cost of vaccine
administration;
iii. Support to NARO to roll-out the anti-tick vaccine, starting
with 20 million doses;
iv. De-risking agriculture through supporting increased
production and productivity as well as value addition for all
the priority value chains;
v. More support for agricultural mechanisation;

vi. Increased investment in small and large irrigations systems,

particularly solar-powered irrigation;
vii. Support for seed multiplication through the Uganda
Prisons to increase seed availability for PDM beneficiaries;
and
viii. Additional credit support to large-scale commercial
farmers to ensure food security and increased exports.

25
 TOURISM DEVELOPMENT

68. Madam Speaker, Uganda has increasingly regained her

global position among the top ten best tourism destinations
in global tourism rankings. In the year 2023, international
tourist arrivals increased by 56 percent to 1.274 million
tourists compared to 814,085 arrivals in 2022 and the peak
of 1.52 million in 2019. The international tourism receipts
reached USD 1.03 billion in 2023.
69. Madam Speaker, tourism has a high return on investment.
In FY2024/25, I have provided Shs 289.6 billion to the
tourism development programmes to undertake the
following:
i. Support international and domestic tourism marketing and
promotion activities;
ii. Modernise our tourism products to make them more
competitive. These include completion of the pier and related
infrastructure at the Source of the Nile; upgrading the
Uganda Museum; construction of 8,000 metres of climbing
ladders and boardwalks on the Rwenzori Mountains to make
hiking safer;
iii. Continue with the grading, supervision and classification of
tourism facilities to enhance the quality of services and
ensure adherence to the required global standards;
iv. Complete the upgrade of the Uganda Hotel and Tourism
Training Institute infrastructure in an effort to make it an
International Centre of Excellence for training and skills
development in tourism and hospitality; and
v. Enhance the conservation of Uganda’s 22 Wildlife Protected
Areas with a focus on the mitigation of human wildlife
26
 conflicts. Government is going to construct an additional 150
kms of electric fence and maintain the existing 106-km
fence; carry out boundary surveillance through more than
13,904 patrols; uproot invasive species and construct four
(4) water dams in protected areas.
70. Madam Speaker, apart from the Shs 287.6 billion that I
have directly provided to the tourism sector, an additional
Shs 1.629 trillion has been provided for several critical
interventions associated with tourism including support to
Uganda Wildlife Authority, construction of tourism roads,
road rehabilitation and upgrade under Kampala Capital City
Authority, support to AFCON‘27 and completion of key
stadia, strengthening security, law and order in our tourism
destinations, and extension of the internet to tourism
destinations, among others.
71. In particular, I have provided an additional Shs 55 billion to
Uganda’s Missions Abroad to support the Uganda Tourism
Board (UTB) to market Uganda to potential tourists, market
our exports and attract more investors.
SCIENCE, TECHNOLOGY AND INNOVATION
72. Madam Speaker, Government has earmarked Science,
Technology, and Innovation (STI) as a key catalyst for the
qualitative leap to achieve tenfold growth of our economy.
This financial year, building on investments made in recent
years, the following are the key achievements attained:
a) Kiira Motors Corporation (KMC)
73. Government has supported Kiira Motors to construct and
equip a magnificent 2,500 vehicles per year manufacturing
plant in Jinja Industrial Park. This facility has capabilities
for bus and truck body manufacture; vehicle painting;
27
 powertrain manufacture; electrical, electronic systems and
trim integration; and production quality inspection and
testing.
74. The complex has so far manufactured 39 buses of which 27
are electric and 12 are low-emission diesel. The company
has orders for more than 100 buses from Tanzania, South
Africa, Eswatini (formerly Swaziland), and Nigeria. This
demonstrates the huge market potential for the vehicles.
Kiira Motors Corporation (KMC) currently directly employs
168 people (in engineering, production, marketing and sales,
and finance and administration). This number will increase
to 600 once the plant in Jinja is fully operational.
75. Madam Speaker, next financial year Government is going to
support Kiira Motors with Shs 32.5 billion to complete the
plant and access working capital.

b) Presidential Initiative on Banana Industrial

Development (PIBID)

76. Madam Speaker, Government has supported PIBID to

establish semi-automated plant in Bushenyi with a daily
processing capacity of 14 metric tons of fresh matooke. This
project has shown potential for import substitution by
replacing wheat, and also by providing gluten-free starch
products. These have high global demand. The company has
started fulfilling international orders including from South
Korea, the Royal Kingdom of Saudi Arabia, Qatar, and Italy.
PIBID currently employs 150 staff and collaborating with
6,543 farmers

28
77. Next financial year, Government has provided an additional
Shs 50 billion to complete the capitalisation of the company
to transition into a self-sustaining business.
c) The Pathogen Economy
78. Madam Speaker, the pathogen economy has made
tremendous progress in developing vaccines, therapeutics,
diagnostics and other healthcare tools for our public health
security and import substitution. The scientists at Makerere
University developed a PCR diagnostics kit that has so far
been used for conducting more than 2 million COVID-19
tests. This kit effectively halved the cost of COVID-19
testing, and saved Government more than USD 37 million
(Shs 140 billion). A Clinical Trials Platform for natural
therapeutics, the first on the African continent, has been
established. The human vaccines have completed animal
studies and are under preparation for clinical trials.
79. Madam Speaker, other Government support under the
pathogen economy has been directed towards the following
special initiatives:
i. Dei Biopharma Ltd is establishing Africa’s largest
pharmaceutical and vaccine manufacturing facility here in
Uganda. The facility will create job opportunities for more
than 10,000 science professionals and 30,000 others in
the support ecosystem. Production of generic drugs,
cancer drugs, and human vaccines is scheduled to start
by November 2024. Government is in the process of
finalising equity acquisition in exchange for its Shs 723
billion investment.
ii. The anti-tick vaccine project at Makerere University,
spearheaded by Dr. Margaret Saimo-Kahwa, has

29
 undergone clinical trials. I have provided an additional
Shs 25 billion to produce and commercialise the anti-tick
vaccines.
iii. Government has also supported Jena Herbals of Prof
Patrick Ogwang (known for COVIDEX) to undertake
clinical trials of his natural therapeutics and establish an
internationally certified production facility to manufacture
and commercialise them. I have provided an additional
Shs 2.07 billion for this purpose next financial year.
iv. Support to Prof Jennifer Serwanga Sempala to advance
her research in human vaccines. I have provided an
additional Shs 25.24 billion needed to complete the
research and start producing the vaccine.
d) Coffee Value Chain Development

80. Madam Speaker, Government has partnered with the private

sector to fast-track local value addition to coffee. We have
started with three apex centres for high-value coffee
processing under the Coffee Investment Consortium, Great
Lakes Coffee, and Inspire Africa Coffee. All have acquired
modern roastery, freeze-dry and spray-dry technologies to
produce instant, roast and ground coffee products, coffee
capsules, cold brew and instant coffee with a total capacity
of 5,850 metric tons per year. One of the facilities is
complete while the other is 62 percent complete.
81. Government will support the completion and expansion of
these facilities, their operationalisation and market
penetration of the products on the local, regional and
international markets. The target is to aggregate, add value
and market at least 1 million bags of medium-to-high
quality green coffee beans by 2025. This will earn Uganda

30
 USD 560 million from value added coffee in the next five
years, which would catalyse the whole sector to bring in at
least USD 5 billion in line with our tenfold growth strategy.
Shs 75 billion has been provided next financial year to
improve coffee value chain development.
e) Space Programme

82. Madam Speaker, Government has supported rapid human

capital development of the Aerospace Programme by training
our engineers in Japan, China and Egypt. Government has
partially refurbished the headquarters of the Space
Programme, the Mpoma Satellite Earth Station to enhance
weather prediction, and monitoring of landslides and the
environment.
83. Government will support completion of these initiatives
including the establishment of a satellite development
laboratory and a modern Geospatial Centre to be able to
obtain data from a broad spectrum of satellites from partner
nations. I have provided Shs 3.3 billion for Space
Programme activities next financial year.
84. Madam Speaker, I want to commend H.E the President for
spearheading the development of the knowledge economy
through targeted funding of research and development, and
scientists in general.

MINERAL DEVELOPMENT
85. Madam Speaker, mineral development is another growth
accelerator that has been earmarked by Government to
expand Uganda’s economy by tenfold. It is going to support

31
 resource-based industrialisation into light manufacturing
and high-tech exports.
86. During the financial year we are ending, the following have
been achieved in the minerals sector:
i) The entire country has now been fully mapped using
airborne and ground geophysical technologies;
ii) The National Mining Company has been incorporated as
a commercial vehicle for investment and trading in
minerals on behalf of Government;
iii) Several key mineral development projects and mineral
value addition centres have been developed, including
Wagagai gold mining in Busia, rare earth metals in
Bugweri; a graphite project in Kitgum; a limestone mining
project by Sunbird Resources Limited in Moroto; and
Seven Gold Refineries in Kampala, among others.
iv)M/s Woodcross Tin Smelting Company Ltd has
established a tin smelter in Western Uganda to produce
tin ingots to 99.95 percent tin grade.
87. Madam Speaker, next financial year, I have allocated Shs
41.55 billion to undertake the following interventions for
further mineral development:
i) Fast-tracking quantification and market studies for all
minerals for the purpose of investor promotion;
ii) Operationalising the National Mining Company;
iii) Further reviewing and strengthening the fiscal regime for
minerals, including regulation of artisanal and small-
scale miners;

32
 iv) Developing the e-government mineral production system
and data bank for mineral statistics;
v) Commencing construction of the Busia and Moroto
beneficiation centres; and strengthening the Ntungamo
and Fort Portal centres; and
vi)Facilitating private sector participation in exploration,
mining and value addition to minerals.

OIL AND GAS

88. Madam Speaker, Uganda is progressing steadily towards the

first oil in FY 2025/26. During the financial year we are
ending, the following have been achieved:
i) The Upstream Petroleum Project has advanced with
drilling works in preparation for production;
ii) The East African Crude Oil Pipeline (EACOP) Project is on
track with 500 km of pipeline delivered in Tanzania. The
target is to lay 100 km per month;
iii) The thermal insulation plant for heating the EACOP in
Tabora Tanzania was commissioned in March 2024;
iv)The Ministry of Energy and Mineral Development has
issued two new exploration licences to Uganda National
Oil Company and DGR, an Australian-based company;
v) The planned 60,000 barrels per day Refinery in Kabaale,
Kikuube District, is progressing well. The land for the
project sites and associated terminal has all been
acquired by Government. Technical designs for the
project are ready. Government is working with Alpha
MBM Investments from the United Arab Emirates (UAE)
to build the Refinery;
33
 vi)Government enforcement of the National Content Policy
has ensured that up to 93 percent jobs in the oil & gas
sector go to Ugandans, a total of 13,607 jobs so far;
vii) In addition, the companies investing in the oil and gas
sector are contracting locally. Since 2021, contracts
worth USD 1.796 billion have been awarded to Ugandan
companies, out of the total contract investment of USD
7.162 billion.
89. Madam Speaker, in a bid to ensure security of supply of
petroleum products, UNOC in partnership with the private
sector will commence the importation of all our petroleum
products beginning in the first week of July 2024.
90. Madam Speaker, next financial year I have provided Shs
920.86 billion for the oil and gas sector to prioritise the
following:
i) Development of the East African Crude Oil Pipeline
(EACOP) hub in Tanga;
ii) Continued construction of the EACOP including the
necessary infrastructure to facilitate adherence to high
quality environmental standards;
iii) Procurement and dissemination of the 57,000 Liquefied
Petroleum Gas (LPG) cylinders to promote clean cooking;
and
iv) Establishment of the Petroleum Geoscience Laboratory;
and
v) Equity contribution for the Refinery Project.

34
 INTEGRATED TRANSPORT INFRASTRUCTURE AND
SERVICES

91. Madam Speaker, a total of 205 km was added to the paved

network during FY2023/24, increasing the total paved
national road network to 6,338 km, representing over 30
percent of the national road network.
92. The following roads were completed during the financial
year: Atiak-Laropi (66 km); Masindi-Biiso, Hohwa–
Nyairongo–Kyarusheesha-Butoole, and Kabaale-
Kiziranfumbi Roads (97 km); Moroto-Lokitanyala (42 km);
Rukungiri-Kihihi-Ishasha/Kanungu (78.5 km); Kapchorwa-
Suam (73 km); and Masindi Park Junction and Tangi
Junction-Para-Bulisa Roads (159 km);
93. In addition, three (3) bridges were completed and
construction of 36 critical strategic bridges is ongoing. The
completed bridges are:
i) Kampala Flyover and Road Upgrading;
ii) Lugogo Bridge, connecting Nakasongola District and
Ngoma in Nakaseke via Kasozi; and
iii) Saaka Swamp Crossing in Pallisa.
94. With regard to air transport, the following were
accomplished during FY2023/24:
i) 90 percent completion of Kabalega International Airport
in Hoima; the remaining 10% comprises of critical air
navigation, meteorology, communication and airport
operational facilities;
ii) 90 percent completion of the expansion and rehabilitation
of Entebbe International Airport including the

35
 modernization of the departures and arrival areas of the
terminal building; and
iii) Maintenance of 13 aerodromes including; Arua, Gulu,
Pakuba, Masindi, Lira, Kidepo, Moroto, Soroti, Tororo,
Jinja, Mbarara, Kasese, and Kisoro.
95. Madam Speaker, with regard to water transport, the
following were accomplished during FY2023/24:
i) Completed the construction of three strategic ferries,
namely: Amuru-Rhino Camp Ferry; and Two ferries for
Bukungu-Kagwara-Kaberamaido (BKK) route on Lake
Kyoga.
ii) Completed construction of the Maritime Training Institute
in Namasagali, and commenced construction works for
the Maritime Rescue Coordination Centre (MRCC) at
Mwanza.
iii) Completed 46 percent construction works for Search
and Rescue Centres at Kaazi and 25 percent at Kaiso,
Panyimur and Zengebe landing sites; and
iv)Continued with the development of the new Kampala Port
at Bukasa.
96. With regard to railway transport, the following were
accomplished during FY2023/24;
i) Acquired a 161-km corridor for the Standard Gauge
Railway between Tororo and Mayuge;
ii) 28 percent completion of rehabilitation of the Tororo-
Gulu Metre Gauge Railway;
iii) Completed emergency refurbishment and rehabilitation
of the Malaba-Kampala-Namanve Meter Gauge Railway.
97. Madam Speaker, during the FY 2024/25, more focus will be
put on maintenance of the roads we have built, building of a

36
 few new strategic roads, accelerated rehabilitation of the
Metre Gauge Railway, and commencement of construction of
the Standard Gauge Railway. I have provided a total of Shs.
4.989 trillion for that purpose. In particular, the following
transport infrastructures will be undertaken:
a) Roads and Bridges

i) Tarmacking of an additional 306 km of roads under the

ongoing projects;
ii) Completion of the upgrading of 210 km of the following
roads: Muyembe-Nakapiripirit (92 km) and 25 km of
service roads; Kira-Matugga Road and improvement of 5
junctions (21 km); Tororo-Busia Road (26 km) and
Mayuge and Busia Town Roads (18 km); Kawuku-
Bwerenga Road (6.6 km) & Namugonde-Bugiri Road (1.6
km); selected town roads (7.5 km) in Pallisa and Kumi
(12.2 km); and remedial works on Ntungamo-Kabale-
Katuna Road (65 km);
iii) Commencing the upgrading/construction of 643 km of
the following road projects: Kisoro-Lake Bunyonyi Road
and Kisoro-Mgahinga National Park Headquarters Road
(33.2 km); Koboko-Yumbe-Moyo (105 km); Yumbe-Ure
Road (23.6 km); Kitgum-Kidepo (116 km); Namagumba-
Budadiri-Nalugugu Road (39 km); Katine-Ochero Road
(69.3 km) and 2.9 km of town roads in Kaberamaido and
Kalaki towns; Kyenjojo (Kihura)-Bwizi-Rwamwanja-
Kahunge and Mpara-Bwizi (105km); Iganga-Bulopa-
Kamuli (56.3 km); and Jinja-Mbulamuti-Kamuli-
Bukungu (127 km); and Jinja City roads (10 Km); Kisubi-
Nakawuka-Natete/ Nakawuka-Kasanje-Mpigi/
Nakawuka-Mawugulu-Nanziga-Maya/ Kasanje-Buwaya
(71 km).
37
 iv)Upgrading to bitumen standard (tarmac) 16.9 km of
roads in the Greater Kampala Metropolitan Area (GKMA),
and Gomba District;
v) Completing the construction of 20.2 km of Kayunga-
Nabuganyi Road;
vi)Completing the construction of Kakiri-Masulita-Mawale
Road (23 km);
vii) Rehabilitation of over 10,000 km of national and
community access roads in various parts of the country.
This will be in addition to routine maintenance under the
Uganda Road Fund.
viii) Commencing the reconstruction works for Masaka-
Kyotera-Mutukula Road (89.5 km) and Rehabilitation of
Nyendo-Villa Maria Road (11 km) and access roads (7
km).
ix)Continuing with the ongoing construction of up to 30
bridges and structures on the national roads including
Alla (Anzuu) Gazi (Rhino Camp), Aca (Rhino Camp),
Lugogo Swamp Crossing, Nabukhaya, Nambola,
Nametsimeri, Sahana and Khamitsaru Bridges, Rubongi
Bridge, Maziba, Kiruruma, Rwembyo and Kajwenge
Bridges, Kamirwa, Nyakambu, Kochi, Osu, Odrua,
Dunga, Mahoma, Mpanga, Nabuswa (Nyabuswa) and
Perepa Bridges, among others.
b) Development of Water Ferries
98. Madam Speaker, the construction of two (2) Lake Bunyonyi
Ferries is currently underway, and will be completed next
financial year.
c) Air Transport

38
 99. Madam Speaker, Shs 162 billion has been provided for
completion and operationalisation of Kabalega International
Airport in Hoima; and plans are underway to acquire at least
two (2) mid-range aircraft and 2 cargo aircraft to facilitate
exports in the medium term.

INFORMATION AND COMMUNICATIONS TECHNOLOGY

(ICT)
100. Madam Speaker, during the financial year we are
concluding, the following have been achieved in the ICT
sector:
i) A total of 4,354 Km of optic fiber cable have been laid
across the country connecting 1,523 key Government
service delivery units to the National Backbone
Infrastructure;
ii) The internet penetration in the country has increased to
64 percent from 25 percent in 2017, and the share of
Government services provided online is now at 40
percent, up from 20 percent registered in 2017.
iii) A PDM Information System has been developed and
rolled out in all the 10,585 parishes across the country.
101. Madam Speaker, next financial year I have provided over
Shs 246 billion to continue developing the ICT and digital
transformation through the following interventions:
i) Further expansion of internet connectivity and digital
infrastructure across the country;
ii) Continuing the rollout of digital services across
Government to improve efficiency of service delivery,
transparency and accountability

39
 iii) Leveraging Business Process Outsourcing (BPO) and
ICT to create employment opportunities for the young
people;
iv)Digital skilling to increase adoption of the digital services;
and
v) Cyber security, data protection and privacy.

ENERGY DEVELOPMENT

102. Madam Speaker, the country’s power generation capacity

has increased by 600MW from 1,378.7MW to 1,978.1MW
following the connection of Karuma Hydropower Dam to the
national grid. The electricity transmission capacity has now
increased to 4,218 km of high voltage from 3,500 km in
2020.
103. In the next financial year, I have provided Shs 982.56
billion to undertake the following:
i) Increased access to electricity through grid expansion
and connectivity projects;
ii) More investment in the construction of transmission and
distribution networks targeting load centres to promote
value addition;
iii) Improving the quality of power supply through the
systematic operation and maintenance of existing power
infrastructure;
iv)Increasing access to clean energy by supporting clean
cooking technologies;
v) Development of five (5) micro-grid power plants using
wind and solar hybrids in Karamoja; and
vi)Preparatory activities for the 8,400MW Nuclear Power
Plant in Buyende District.

40
 INDUSTRIAL DEVELOPMENT AND MANUFACTURING
104. Madam Speaker, in our tenfold growth strategy Government
is going to step up efforts to accelerate diversification of the
economy, add value to raw materials to boost exports and
import substitution to continue reducing our import bill,
and also build more basic industries to produce items that
Ugandans use on daily basis such as sugar, soap, cooking
oil, clothes, medicines, construction materials, etc.

105. Our industrialisation efforts are being undertaken mainly

through the private sector, but with the State playing a de-
risking role. Government through the Uganda Development
Corporation (UDC), is undertaking targeted investments to
increase Uganda’s manufacturing capacity. During the
financial year we are ending, the following investments have
been undertaken by UDC to increase local manufacturing
capacity:
i) The Atiak Sugar Factory has acquired modern
mechanised equipment for the sugarcane fields in Amuru
and Lamwo Districts and installed modern irrigation
systems;
ii) Four tea factories have been supported to expand and
process tea for both domestic market and export. These
are: Kayonza Growers Tea Factory; Kigezi Highland Tea
Factory; Mabale Growers Tea Factory; and Mpanga
Growers Tea Factory;
iii) Continued support to Mutuma Commercial Agencies
Ltd in Luuka district to produce intermediary and final
products such as surgical cotton, cotton cake, soap stock
and cotton seed oil;

41
 iv)Investment in Bukona Agro-processors Ltd in Nwoya
District to process cassava and cereals into ethanol for
cooking. It produces 40,000 litres of ethanol per day;
v) Investment in Budadiri Arabica Coffee Mills Ltd in
Sironko District to process coffee for export;
vi)Additional investment in Soroti Fruits Factory Ltd that is
processing 6 metric tons of fruit (mangoes and oranges)
per hour into fruit concentrates and juice; and
vii) UDC has also invested in the East African Medical
Vitals Ltd, manufactures of examination and surgical
gloves, to increase the company’s production capacity to
create jobs and also save the country foreign exchange
through import substitution.
106. Madam Speaker, Government is also continuing to develop
industrial parks to provide investors with the required
infrastructure and utilities. Work is progressing in the
Namanve Park (with 190 companies operating); Liao Shen
Park in Kapeeka (19 companies); Sino-Uganda Industrial
Park in Mbale (18 companies); Luzira Park (11 companies);
Bweyogerere Park (8 companies); and MMP in Buikwe (6
companies).
107. Other operational industrial parks include: Jinja, Soroti,
Kasese, Mbarara, and Tian Tang-Mukono Industrial Parks.
So far, over USD 3.5 billion have been invested in these
parks in the form of Foreign Direct Investment. Over
266,812 direct and indirect jobs have so far been created.

SECURITY, GOOD GOVERNANCE AND RULE OF LAW

42
108. Madam Speaker, peace and security, as well as the rule of
law, are the foundation for all other things we aspire to
achieve. It is the bedrock for socio-economic transformation,
democracy and all the human rights and freedoms we all
cherish. Accordingly, as we have done before, Government
will continue to prioritise peace, security and the rule of law.
109. Next financial year, I have provided a total of Shs 9.588
trillion, of which Shs 481.4 billion is for the administration
of justice to ensure that Uganda remains a peaceful and
accountable country with law-abiding citizens. Some of the
priorities in these programmes include:
a) Security of the Person and Property
i. Strengthening the capacity of security agencies to address
emerging security threats, and ensuring combat readiness
of security agencies to protect life and property;
ii. Enhancing military capability through acquisition of
various assets, and strengthening the surveillance
infrastructure;
iii. Supporting joint military operations in the region;
iv. Building effective crime response systems targeting
sophisticated crimes such as terrorism, other
transnational crimes, arms proliferation, illegal entry into
the country, money laundering, cybercrime, espionage,
smuggling of contraband, human trafficking, and others;
v. Supporting the civil authorities in combating threats as
well as managing the refugees in line with our Refugee
Policy; and
vi. Improving the welfare of the military, police, prisons, ISO
and ESO personnel through salary enhancement.
b) Justice, Law and Order

43
vii. Strengthening justice, law and order service delivery
systems by:
a. Recruiting 10 more High Court Judges in Commercial
and Land Divisions to enhance adjudication of
commercial and land cases to eliminate backlog;
b. Recruiting 5 more Justices of Court of Appeal in line
with the Judicature (Amendment Act), 2024;
c. More investment in court automation to cover an
additional 10 Courts to enhance efficiency, reduce
human contact and by extension reduce incidents of
corruption;
d. Promotion of the Alternative Dispute Resolution (ADR)
Mechanism to complement the formal adjudication of
cases;
e. Starting construction of Regional Courts of Appeal in
Mbarara and Gulu; High Courts in Hoima and Mpigi;
Chief Magistrate Courts in Amolatar, Bubulo, Rakai and
Katine; and Magistrate Grade One Courts in
Busembatia, Nyarushanje, Rubuguri and Adwari;
f. Promoting the use of scientific evidence in investigation
and prosecution of cases, including construction of the
National DNA Databank at the Government Analytical
Laboratories at Wandegeya;
g. Mass enrolment for and renewal of National IDs, and
automation of immigration and business registration
services;
h. Reforming laws and the due process to ensure faster
and expeditious resolution of disputes, among others.

NATURAL DISASTER RESPONSE AND MANAGEMENT

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110. Madam Speaker, during FY2023/24, Government supported
53,930 households with relief food and non-food items such
across the country. Next financial year, I have provided Shs
18.1 billion plus a Contingency Fund of Shs 146.26 billion
to support disaster response and management, including:
i. Operationalisation of the National Disaster Risk Management
Plan;
ii. Support 50,000 households with food and non-food items
across the country;
iii. Provision of funds to Uganda Red Cross Society to support
disaster victims;
iv. Supporting the resettlement of 1,000 households that were
displaced by landslides and floods in the Elgon Region
including the districts of Bududa, Manafwa, Bulambuli,
Namisindwa and Sironko.

V. GROWTH STRATEGY FOR FY 2024/2025 AND THE

MEDIUM TERM
111. Madam Speaker, in line with H.E the President’s guidance,
my Ministry in collaboration with the National Planning
Authority has developed a strategy for growing Uganda’s
economy tenfold. The target is to expand the size of the
economy from about USD 50 billion last year to USD 500
billion by 2040.
112. Government has identified four anchor sectors to drive this
growth. These are:
1. Agro-Industrialisation,

2. Tourism Development,
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 3. Mineral Development, including oil & gas, and

4. Science Technology and Innovation (STI), including ICT.

113. Madam Speaker, these are the ATMS that are going to mint
money for Ugandans next financial year and in the medium
term. The detailed enabling policies, interventions and
actions will be contained in the forthcoming 4 th National
Development Plan (NDP IV).
114. Madam Speaker, to achieve this ambitious goal in the next
15 years, we must deliberately and pragmatically do the
following:
i. Double the size of GDP every 5 years for the remaining three
National Development Plans;
ii. Raise per capita GDP six-fold from the current USD 1,146 to
about USD 7,000 in FY 2039/40;
iii. Double the level of savings in the economy from 20 percent
of GDP to 40 percent of GDP in 2040;
iv. Raise the share of exports in GDP from 12 percent in 2022 to
50 percent, and the share of manufactured products in
merchandise exports from 13 percent to 50 percent; and
medium high-tech products from 21 percent to 50 percent
over the same period;
v. Increase the annual FDI inflows from USD 2.9 billion in
2022 to USD 50 billion by 2040; and
vi. Accumulate the stock and quality of human capital (skilled
workers); physical capital (energy, railway, roads, air travel
and internet infrastructure); and natural capital (forests,
swamps, rivers and lakes).
115. Madam Speaker, the success factors of this strategy are:
46
 i. Enhancing the capacity for effective national defence and
security to avert any internal or external security risks;
ii. Maintaining constitutional order, an effective and efficient
Judiciary, and a people-centred Legislature;
iii. Economic stability in line with commitments contained in
the Charter for Fiscal Responsibility;
iv. A reformed Government-wide coordination of rationalised
Ministries, Departments, Agencies, and Local Governments;
v. Effective and accountable public institutions prepared to
fight corruption and impunity;
vi. Policy consistency to ensure effective implementation of
Government programmes and interventions;
vii. Enforcement of local content in Government
programmes and investments, and support to culture and
the creative industry;
viii. Digitisation and automation including e-payments, e-
commerce, e-Government procurement, e-health, e-
education, etc.
ix. Support and take advantage of the full implementation of the
EAC Common Market and economic integration under the
African Continental Free Trade Area.

VI. FINANCING AND EXPENDITURE FOR FY2024/25

116. Madam Speaker, the total resource envelope for Financial
Year 2024/25 amounts to Shillings Seventy-Two Trillion,
One Hundred and Thirty Six Billion, Five Hundred and

47
 Four Million, Two Hundred and Fifty Three Thousand,
Four Hundred and Sixty Six Shillings (Shs.
72,136,504253,466/=) trillion of which total revenue is as
detailed below:
i) Domestic revenues amount to Shs 31.982 trillion, of
which Shs 29.366 trillion will be tax revenue and Shs
2.616 trillion will be non-nax revenue;
ii) Budget Support - Shs 1.394 trillion;
iii) Domestic Borrowing - Shs 8.968 trillion;
iv)Treasury bonds for settlement of Government
outstanding obligations to Bank of Uganda as at 30 th
June 2024 - Shs 7.779 trillion;
v) Domestic Refinancing of maturing domestic debt - Shs
12.022 trillion;
vi)Petroleum Fund drawdown - Shs 115.4 billion;
vii) Project support (external financing) - Shs 9.583
trillion; and
viii) Local Government revenue collections - Shs 293.9
billion.
117. Madam Speaker, the total government expenditure for FY
2024/2025 is projected at Shillings Seventy Two Trillion,
One Hundred and Thirty Six Billion, Five Hundred and
Four Million, Two Hundred and Fifty Three Thousand,
Four Hundred and Sixty Six Shillings (Shs.
72,136,504253,466/=) trillion; of which the total
appropriation is Shs 37.56 trillion and statutory
expenditure is Shs 34.756 trillion.
48
118. Wages and salaries are projected to amount to Shs 7.926
trillion, non-wage recurrent expenditure to Shs 17.454
trillion, development expenditure from own resources to
Shs 6.152 trillion, external project financing Shs 9.584
trillion, appropriation in aid to Shs 293.9 billion, while
external debt repayment will amount to Shs 3.149 trillion.
119. Madam Speaker, I have attached the details of the Resource
Envelope and Expenditure Allocations by Vote for
FY2024/2025.
120. Madam Speaker, the FY2024/25 budget has been designed
to target seven key priorities. These are:
i) Investing in the people of Uganda through education,
health and water, sanitation and hygiene, for which I
have provided a total of Shs 10.204 trillion;
ii) Peace and security of all persons in Uganda. I have
allocated a total of Shs 9.107 trillion, including a 25
percent enhancement of salaries of all security
personnel at the rank of Captain and below;
iii) Maintenance of all roads, construction of a few strategic
roads, as well as rehabilitation of the Metre Gauge
Railway and construction of the Standard Gauge
Railway. I have provided Shs 4.989 trillion for these;
iv) Investing in wealth creation initiatives, including
commercial agriculture, value addition (UDB and UDC),
the Parish Development Model (PDM), Emyooga,
Agriculture Credit Facility, tourism, science-based

49
 research, and youth skilling, export promotion
programme, and the GROW Project. I have allocated a
total of Shs 2.641 trillion;
v) To facilitate electricity transmission, distribution and
utilisation of existing energy stock, I have allocated Shs
982.6 billion;
vi) Natural disasters (Contingency Funding), to which I
have allocated Shs 146.1 billion; and
vii) Our international commitments for regional and global
partnerships, Shs. 31.1 billion.
121. Madam Speaker, the above priorities are in support of the
anchor sectors that have been identified to drive rapid
expansion of the economy.

APPROVED SOURCES OF FUNDS TO FINANCE THE

BUDGET
122. Madam Speaker, the following principles guided the
preparation of the FY2024/25 budget:

i) Strengthening domestic revenue mobilisation by providing

adequate funding to revenue generating entities;

ii) Strengthening public finance management to ensure

accountability and frugality, and avoiding misuse of public
resources;

50
 iii) Repurposing of budget towards high impact economic
growth areas;

iv)Improving efficiency in the execution of projects and other

public investments; and

v)Borrowing for only strategic high impact interventions.

123. Madam Speaker, starting FY 2024/25, Accounting Officers

of revenue generating entities will sign commitment
contracts against the agreed revenue performance targets
upon which budget allocations have been made, in addition
to the performance contracts they sign annually.

Domestic Revenue Mobilisation

124. Madam Speaker, to collect the projected revenue for FY
2024/25 of Shs. 31.982 trillion, a mix of modest tax policy
measures were proposed and approved by Cabinet and
Parliament. These will be complemented by enhanced tax
administration by Uganda Revenue Authority (URA) and
rationalisation of tax exemptions in line with the Domestic
Revenue Mobilisation Strategy.

Tax Measures for Financial Year 2024/25

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125. Madam Speaker, the following are the modest changes in
taxes that were approved by Parliament to raise more
revenue and/or improve the budget environment:
Excise Duty
i) Imposition of excise duty on powdered beer at Shs 1,000
per kilogram
ii) Imposition of excise duty at a rate of 0.5 percent of the
value of withdrawals of money from other platforms other
than mobile money. This does not apply to withdrawals
from agent banking or banking halls.
iii) Increase excise duty on petrol by Shs 100 per litre.
iv)Increase excise duty on diesel by Shs 100 per litre.
v) Increase excise duty on imported wines from 80 percent
or Shs 8,000 per litre to 100 percent or Shs 10,000
whichever is higher.
vi)Imposition of excise duty on adhesives, grout, white
cement and lime. The objective is to align the tax
treatment of these products with that of cement.
Value Added Tax (VAT)
126. Madam Speaker, under VAT, the supply of electric
motorcycles, vehicles manufactured or fabricated in Uganda
and their respective charging stations and batteries for
electric motorbikes, charging stations and related services
are exempt from tax. The objective is to facilitate the growth
of e-mobility and affordability of electric cars and
motorcycles and protect the environment.

52
127. Madam Speaker, starting next financial year, the provision
of taxable goods/services by an employer to an employee will
attract VAT.
Income Tax
128. Madam Speaker, under the Income Tax Act, we provided
incentives for the following:
i) We have exempted investors from tax capital gains
arising from the sale of holdings in private equity or
venture capital funds regulated by the Capital Markets
Authority. The intention is to incentivise private equity or
venture capital investments in Uganda;
ii) We have provided tax holidays on the income of a person
who manufactures and fabricates electric motor vehicles,
electric motorcycles, electric batteries and electric vehicle
charging equipment, as well as the income of a person
who develops, establishes or operates a medical facility or
hospital facility;
iii) We have extended the waiver of penalties and interest
on arrears outstanding by June 2023. This waiver will
apply when the taxpayer pays between July and
December 2024; and
iv)We have also introduced a 10 percent withholding tax on
commission paid to the banking agents and fintech
agents (payment service providers).
Tax Administration Measures
129. Madam Speaker, much of the anticipated additional
revenues will be generated from compliance measures
undertaken by URA. These include:

53
 i) Expanding URA presence and coverage by opening up 5
liaison offices;
ii) Strengthening the enforcement and use of Electronic
Fiscal Receipting and Invoicing System (EFRIS) and
Digital Tax Stamps (DTS) and the rental tax solution;
iii) Strengthening the exchange of information with other
tax authorities to combat illicit financial flows and under-
declarations; and
iv)Strengthening enforcement interventions.
130. Madam Speaker, I call upon all of you colleagues and fellow
Ugandans to render URA and other revenue-collecting
institutions the necessary support to mobilise the revenue
required to meet the targets for FY2024/25. We must raise
more revenue and reduce reliance on borrowing and
external grants.

PUBLIC DEBT
Public Debt Stock
131. Madam Speaker, as at the end of December 2023, Uganda’s
total public debt stood at Shs 93.38 trillion, equivalent to
USD 24.69 billion. Of this amount, external debt was Shs
55.37 trillion equivalent to USD 14.64 billion while
domestic debt was Shs 38.01 trillion equivalent to USD
10.05 billion. The public debt is projected at Shs 97.638
trillion, equivalent to USD 25.716 billion by 30th June
2024.
132. In nominal terms, Uganda’s public debt to GDP was
estimated at 46.9 percent in June 2023, and is projected to
end at 47.9 percent this financial year ending June 2024.

54
 This is below the 52.4 percent threshold provided for in the
Charter for Fiscal Responsibility for the financial year
2023/24, and less than 50 percent of GDP Government
policy target for debt sustainability.
133. Madam Speaker, although our debt has increased, it is still
sustainable and Government is committed to keeping it
sustainable. Most importantly, the money we have borrowed
has been invested well and these investments have started
to give good returns. The borrowed money has been spent as
follows:
i) 29 percent was invested in improving the transport
infrastructure including, the oil roads, tourism roads,
Kampala-Entebbe Express Way, the Kampala Flyover,
and the several tarmacked roads linking the whole
country; airports including upgrading of Entebbe
International Airport, and building of Kabalega
International Airport, rehabilitation of the Metre Gauge
Railway, etc;
ii) 28 percent has been invested in the development of
energy infrastructure, including Karuma and Isimba
Dams, power transmission lines, and rural electrification;
iii) 12 percent has been invested in improving water
sources for both human consumption and for irrigation
and livestock;
iv)5 percent in agro-industrialisation; and
v) The development of industrial parks, extension of the
National Backbone Infrastructure which has improved
the quality of internet and communication, as well as
investment in education and health, among others.

55
134. Nonetheless, the ratio of total debt service to domestic
revenue excluding maturing domestic debt (redemptions) is
projected to increase to 40.3 percent in FY2024/25 from
33.4 percent in FY2023/24, above the threshold of 20
percent. This is the reason Government has committed to
exercising caution in borrowing to ensure debt sustainability
by implementing the following measures:
i) Prioritising concessional borrowing where available, and
reducing commercial borrowing at high interest rates.
Such borrowing shall only be for very few strategic and
high impact projects.
ii) Strengthening capacity for domestic revenue
mobilisation.
iii) Controlling Government spending to ensure allocative
efficiency.
iv)Boosting exports to increase foreign exchange inflows.
v) Ensuring project readiness and quality of public
investments to increase the return on investment.

VII. CONCLUSION

135. Madam Speaker, in conclusion, the economy has fully

recovered from various shocks that have impacted it in the
past four years. It is now poised to accelerate towards
takeoff, powered by value addition to our agricultural raw
materials and the abundant natural resources, growth in
industry, tourism and innovations by our scientists.
136. This budget is greatly for Ugandans still stuck in the
subsistence economy. Country men and women under this

56
 category, take full advantage of the PDM and other wealth
creation funds as well as other support services to join the
money economy in any of the four sectors - commercial
agriculture, industry, services, or ICT.
137. To the private sector, this budget is anchored on the tenfold
growth strategy. It presents to you a multitude of
opportunities. It has invested in a number of interventions
to further improve the business environment. The
macroeconomy is stable; infrastructure is improving;
affordable capital has been provided for you to engage in
value addition and export; electricity is now reliable and
Government will work hard to reduce its cost; regional
markets are expanding and barriers to market access are
being removed. Therefore, take full advantage of these
opportunities to create wealth and prosperity.
138. To the youth, this budget offers opportunities to acquire
more skills, access finance, innovate and develop new and
better products. To those with talents, I assure you that the
creative industry is going to be supported. This budget is the
beginning among many in the medium term intended to
open up doors for you to escape unemployment and
manipulation by self-interested individuals and groups.
Take full advantage of the opportunities to make money and
live a productive life.
139. To the women and mothers of this nation, the budget has
provided funds to improve your health, to ensure that your
children are born in safe hands, are immunized, sleep under
a mosquito net, drink clean safe water, and are educated in
a nearby school for free. The budget has also allocated
billions to support your businesses, however small they are
now.
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140. To the elderly, persons with disabilities, and other
vulnerable persons, wherever you are in this country, the
budget offers several social safety nets not only to shield you
from poverty but also to ensure that you can be productive
and begin to live a decent life.
141. To the gallant men and women in uniform, at the rank of
Captain and below – who are serving in the UPDF, in the
Uganda Police, in the Uganda Prisons, in internal and
external intelligence services- this budget contains the first
instalment to enhance your pay. Continue to serve your
country and keep it as safe as you have always done. Happy
belated Heroes Day.
142. Madam Speaker, as I step off this podium, I would like to
call upon all Ugandans to embrace the President’s message.
Let every adult Ugandan engage in producing a good or a
service for sale. That way, we shall be able to create a bigger
pie for the greater good of our country. I dedicate this budget
to all the wealth creators.
143. Madam Speaker, I beg to move.

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