The Independent Uganda: You get the Truth we Pay the Price
Twinoburyo said 2019 is an election budget year and that overruns in the administrative budget are expected to play a role in the country’s growth path.
He said that more generation of electricity should be coupled with tangible transmission and distribution infrastructure.
In addition, he said the projected growth in the global economy is expected to have spill-over effects to Uganda’s economy.
Twinoburyo’s views are linked to the International Monetary Fund’s forecast that suggest the global economy will grow at 3.9% in 2019 compared with 3.7% in 2018 supported by increased trade and investments.
“China in particular has the highest correlation…any slow down would impact Africa and Uganda negatively,” Twinoburyo said.
He said oil prices and other commodity prices will still play a role in the country’s economic growth – in that high oil prices could slow down growth in the economy and vice versa.
International rating agency Standard and Poor’s (S&P) has already acknowledged that key infrastructure projects like hydropower projects of Isimba (183 megawatt) and Karuma (600 megawatt) that are planned for completion in 2019 would result in greater availability and efficiency of power generation, increase in usage and hence stir economic growth.
“In our view public-sector-led hydropower projects will boost the power supply in the next few years, helping growth prospects,” the agency says in its latest report. The rating agency also credits the government for making notable progress in reducing the percentage of the population below the poverty line. However, the agency says the other negative side of the poverty story is the fact that majority of the workforce being employed in agriculture have their incomes volatile and are subject to climate change and fluctuations in export prices.
