Uganda is widely recognised as a burgeoning economic powerhouse, projected to be among the top five fastest-growing economies by the end of the decade.
Despite this optimistic forecast, many private sector players, including traders, remain sceptical, feeling disconnected from the nation's economic boom.
The UG Forum 2024, which recently opened its doors, aimed to address this disparity and explore strategies to boost Uganda’s economy tenfold.
While Uganda's growth indicators are predominantly positive, traders are expressing frustration over persistent challenges. Key issues include limited access to finance and a heavy taxation burden.
Edward Ntale, chairman of the Uganda Traders' Association (UTEA), highlighted ongoing grievances, stating, “We are still struggling with the Electronic Fiscal Receipting and Invoicing System (EFRIS), high taxes, and outdated policies like taxation based on weight.”
The first day of the UG Economic Forum was dedicated to discussing Uganda’s economic welfare.
The Ministry of Finance, which has ambitious plans to increase the country’s GDP from $50 billion to $500 billion, maintained that the current tax regime is fair and aimed at reducing the cost of doing business.
Ramathan Ggoobi, permanent secretary of the Ministry of Finance, emphasized a commitment to sustainable growth.
“We want to grow by preserving and enhancing Uganda’s environmental assets. Our aim is to adapt to and protect the environment rather than compromising it for growth.”
Economic experts have noted that while Uganda ranks among the top three entrepreneurial countries globally, there is a persistent challenge in channeling this entrepreneurial energy into productive ventures that expand the tax base.
Adu Rando, managing director of Nile Breweries, noted the ongoing efforts of the private sector to thrive.
He pointed out that focusing on transitioning from illicit to regulated alcohol consumption could expand the tax base.
“The recent tax policies have been beneficial for many sectors, including manufacturing. We look forward to exploring new opportunities for growth,” Rando said during a panel discussion.
The Ministry of Finance is also shifting its focus towards climate financing, aiming to derisk the economy through macroeconomic stability, enhanced security, and a strengthened judicial system.
Next Media’s Deputy Group Managing Director, Joe Kigozi, underscored the role of media in advancing economic discussions.
“The media plays a crucial role in shaping the conversations that impact our economy. Our commitment is to ensure that these important discussions are prominently featured,” Kigozi stated.
The UG Economic Forum, now in its fourth year, serves as a vital platform for experts across finance, tax, economy, and other sectors to address pressing economic issues and drive solutions.
The ongoing discussions are expected to bridge the gap between rapid economic growth and the challenges faced by the private sector, paving the way for a more inclusive and robust economic future for Uganda.