Uganda lowers its growth estimate for the fiscal year 2024–2025

The Ugandan Finance government announced on Tuesday that it has lowered its estimate of economic growth for the 2024–2025 fiscal year, which runs from July to June, to between 6% and 6.5%. The government did not provide an explanation for the reduction.

During the June budget presentation for the current fiscal year, the ministry projected the country in east Africa to have GDP growth of 6.4% to 7%. By the end of June, the GDP was $53 billion.

It stated in a statement on Tuesday that investments in a number of industries, including agro-processing and oil and gas, will be the primary drivers of the rate of economic activity throughout the time.

The ministry further stated that in order to help partially finance the government’s investment in the proposed East African Crude Oil Pipeline (EACOP), 124 billion Ugandan shillings ($33.60 million) had been released by the government to the state-run petroleum company UNOC.

Due to environmental concerns, some Western funders rejected to fund the project, which has resulted in it struggling to get money.

($1 equals 3,690.0000 shillings in Uganda)