31 December 2007
Kampala — UGANDA'S economy has grown by 7% in 2007 despite power shortages and floods in northern and eastern Uganda, President Yoweri Museveni said in his New Year's message to the nation. He expects similar growth figures for next year.
"The prospects for the economy in 2008 are even brighter. GDP growth is expected to continue at a pace of at least 7% per annum."
Museveni attributed this success to a growth in services and industry, particularly the construction, manufacturing and electricity sectors.
"The construction sector registered a growth of 11.8 percent in 2006/2007 and is expected to grow by 17% in 2008," the President said, adding that most of it was by the private sector. The agricultural sector registered a modest recovery following the drought in 2005, he noted. The cotton and cocoa sectors scored the best, with growth rates of 19% and 79% respectively.
"A total of 14,000 bales of cotton lint were processed in 2007 compared to 10,000 bales in 2006."
Coffee and tea, he predicted, would improve further as a result of rising global prices and the Government's interventions under the Strategic Export Programme.
The transformation from an agricultural to an industrial economy was continuing steadily, Museveni said, with the share of agriculture going down and the share of industry going up.
"The share of industry is currently about 21%, compared to 18% 10 years ago and 9.1% in 1986."
This, however, was not good enough, he declared. "We need more industries to create enough jobs for our youth."
He promised that the Government would remove the obstacles to industrialisation in terms of infrastructure and electricity.
"I cannot fail to, again, express my anger at those that delayed our electricity programme in the Sixth Parliament. Our GDP rate would be much higher, 9, 10 or 11%."
The President further pointed out that exports were doing well as a result of the Government's policy of diversification and value addition.
"During the fiscal year that ended in June 2007, our total export was $1.758 billion, compared to $1.395 billion recorded in the previous year. This is an increase of 42% in a single year!"
He listed as a key priority of his government for next year speeding up the pace of industrialisation and creating employment.
"The NRM Government will develop an Industrial Park in every regional center in Uganda to support investors with workspaces, serviced with the necessary facilities such as electricity and water," Museveni announced.
Industrial parks would be set up in Arua, Lira, Gulu, Soroti, Moroto, Mbale, Tororo, Iganga, Jinja, Luwero-Nakaseke, Nakasongola, Bushenyi, Kabale, Kasese, Fort-Portal, Hoima, Rakai and Mubende.
Another priority in 2008 will be developing the energy infrastructure by the speedy construction of Bujagali dam and the development of the Karuma Hydropower Project, the President said.
He further announced improved efficiency measures, like the use of solar photovoltaics and solar water heaters, biogas and production of electricity from municipal waste for sale of power into the grid will be enhanced.
Because of the rapid expansion of the oil sector in the country, the existing oil and gas policy and the legal framework would be revised, Museveni promised.
Other priorities for next year, according to the President, include lowering the cost of communication through the use of the National Data Transmission Backbone, eliminating the back-log on national and district road maintenance and embark on new road construction.
He listed the roads to be constructed in the next two years as Fort-Portal-Bundibugyo, Kabale-Kisoro-Bunagana, Soroti-Dokolo-Lira and Gayaza-Zirobwe. Roads to be upgraded are Kasio-Tonya-Hoima, Matugga-Semuto-Kapeeka and Kampala-Mbarara.
Among those to be tarmacked are Mukono-Katosi, Mpigi-Kabulasoke-Maddu, Mbarara-Kikagate, Mbale-Magale-Bumbo, Muyembe-Namalu-Moroto, Ntungamo-Murama Hill, as well as Gulu-Atiack-Bibia and Arua-Koboko-Oraba.
He warned public servants, contractors and Government agencies not to abuse of taxpayers' money. "The Government will strengthen anti-corruption measures and will punish any one who will misuse or divert public funds."
In addition, he said, the Government would develop a master plan for national rail network and implement measures to improve the business climate, including undertaking pension reform, computerizing the Land and Company Registry, reforming the commercial law and strengthening the fight against corruption.
Since 1991, the Uganda Investment Authority had registered 3,026 companies, creating a total number of 286,457 jobs, thanks to the business-friendly climate by the Government, he noted.
In the education sector, he pointed out that 7.4 million primary school pupils were enrolled in 2007 under Universal Primary Education, up from 2.5 million ten years ago.
He, however, said Universal Secondary Education would be limited to Senior One to Four and would target the needy but bright children in the remote, rural and poor communities.
"I have also decided to provide tax incentives to those private schools that are investing in quality science education."
He, however, criticised the low efficiency in the education system. "I am aware that while enrolment numbers have grown significantly, completion rates are still low", he said.
"The Government will, therefore, improve the efficiency and the quality of UPE and USE by strengthening the Education Standards Agency to undertake the inspection function and remove wastage and misuse of resources."
In the health sector, the President commended medical personnel for dealing decisively with the recent outbreak of deadly epidemics and paid tribute to those who lost their lives in an effort to save the lives of others.
He, however, criticized continued poor service delivery. "Health centers continue not to have drugs and health workers are absent from duty stations. Inefficiency and corruption that leads to drug outages in health centers must be dealt with decisively."
He suggested the labeling of drugs and severe punishments for those found stealing medicines.
"Health workers should also not be allowed to work in private health clinics and drugs stores when they have not provided their minimum required work hours in the Government health centers."
On Northern Uganda, the President said the insurgency had practically ended. "The private sector is booming, a sign of the trust that investors have in the future of Northern Uganda."
The recently launched Peace, Recovery and Development Plan would not only aim at peace-building and rehabilitation but also increased investment in infrastructure and proposals for industrial initiatives, particularly on sugar and fruit processing, he noted.
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