Uganda has recently found itself under global scrutiny due to two major issues. Firstly, its stringent anti-gay bill has triggered disapproval from many Western nations.
Secondly, the country’s collaboration with Tanzania on an oil pipeline project has raised concerns about potential environmental damage.
These positions taken by Uganda have not been without repercussions, primarily impacting its economy. Nevertheless, there are positive projections for Uganda’s economic performance in 2024.
The World Bank’s latest report, titled “The Global Economic Prospect 2024,” anticipates a growth shift for Uganda from 5.3% in 2023 to a promising 6.0% in 2024.
The report highlights that significant economic growth is expected among some of the largest Low-Income Countries (LICs), with Ethiopia and Uganda being notable examples.
Furthermore, the report attributes Uganda’s positive outlook to ongoing infrastructure investments preceding the scheduled commencement of new oil production in 2025.
Despite facing criticism over the East African Crude Oil Pipeline (Eacop), a collaborative venture between Uganda and Tanzania, Uganda remains steadfast in its commitment to the project.
In response to economic sanctions, particularly its removal from the US$40 billion African Growth and Opportunity Act (AGOA), the Ugandan president remains resolute. He emphasizes the nation’s strengths and unity, asserting that external pressures will not hinder the country’s progress.
The president underscores, “Those putting pressure on us are just wasting their time.” Even with the removal from AGOA, the World Bank’s report suggests that increasing investments are expected to be a driving force behind economic growth in both Kenya and Uganda, fueled in part by enhanced business confidence.