President Yoweri Museveni announced that Uganda will earn $2 billion annually once oil production starts in 2025. He stated that this revenue will be used for infrastructure and science development.
Museveni explained that investing $2 billion in these sectors will significantly reduce the government’s need for external borrowing and debt.
The President made these statements after the Minister of Finance, Hon. Matia Kasaija, presented the 2024/2025 budget at a session chaired by Speaker Anita Among at Kololo Independence Grounds on Thursday, 13 June 2024.
According to the Ministry of Finance, Planning, and Economic Development, Uganda’s debt burden stood at 93.38 trillion shillings as of December 2023. Of this amount, 55.37 trillion shillings was external debt, which Museveni said should be eliminated. “If the NRM is in charge, we shall use the oil money for strategic items such as infrastructure and science development; this business of borrowing should stop,” Museveni emphasized.
The Vice President, Jesca Alupo (L), Prime Minister Robinah Nabbanjja (C), and the Second Deputy Premier Moses Ali attended the budget presentation at Kololo.
Museveni noted that the government will invest oil revenues in infrastructure projects such as the Standard Gauge Railway, which will help Uganda create wealth and reduce borrowing.
In the 2024/2025 financial year, the government has allocated over 920 billion shillings to the oil and gas sector to achieve the ‘first oil’.
Kasaija highlighted the progress made in the East African Crude Oil Pipeline (EACOP) project, with 500 kilometers of pipeline already delivered in Tanzania. He added that in the new financial year, the government will focus on developing an EACOP hub in Tanga and continuing the construction of the pipeline.
In addition to the oil sector, tourism, mechanized agriculture, and mineral development were identified as key drivers to boost the economy to $500 billion in the next fifteen years. Museveni stated, “We are lucky we have the rains, but sometimes we get less rain and face food crises. We must have complementary agricultural arrangements so that when the rains do not come, there is a standby irrigation system.”
Some army representatives in Parliament saluted as the anthems were played.
Speaker Among urged members to avoid any inducements and called on accounting officers to report cases of extortion. “We have urged accounting officers to share with the leadership of the legislature any incidences of influence peddling. However, we have not received any such information. We urge accounting officers to maintain open channels of communication with the leadership of the legislature in pursuit of greater transparency and accountability,” Among said.
She called on legislators to adhere to the prescribed code of conduct and uphold the integrity of the rule of law.
