Modupe Gbadeyanka
By Modupe Gbadeyanka
The poverty reduction achievements of Uganda under the President Yoweri Museveni led administration have received the commendations of the Managing Director of the International Monetary Fund (IMF), Ms Christine Lagarde.
Ms Lagarde, after her visit to Uganda, disclosed that the poverty reduction achievements over the past three decades have been underwritten by strong macroeconomic policies, and a reliance on the private sector as the engine of growth.
She also applauded the Minister of Finance, Economic Planning and Development, Matia Kasaija, the Bank of Uganda Governor, Mr Emmanuel Tumusiime-Mutebile and other senior officials for their productive exchange of views and their warm hospitality during her visit to Kampala.
However, the IMF boss pointed out that “Looking ahead, I welcome the government’s sense of urgency and emphasis on promoting inclusive growth which is needed to make further progress on poverty reduction and create jobs for the fast-growing population.”
She said, “Uganda has appropriately embarked on a strategy of scaled-up infrastructure investment in the energy and transport sectors to relieve key growth bottlenecks and enhance regional linkages.
“The government’s focus on overcoming implementation challenges, including through strengthening public investment management, should help ensure that these investments yield the desired outcomes in terms of higher growth and job creation.
“In my discussions, I emphasized that lifting growth will also require complementary reforms that reduce income inequality and support gender equality. I commend the government’s achievements in financial inclusion, including the rapid growth of mobile banking.
“Under the Policy Support Instrument which Uganda has agreed with the IMF, the government monitors the level of social spending to ensure that sufficient resources are available.
“Uganda is set to benefit from deeper economic integration within the East African Community and the advent of oil production in a few years. We agreed that strong institutions and a favourable business environment are essential for seizing these opportunities.
“With regards to managing future oil revenue in particular, I was encouraged by the government’s commitment to transparency and developing a fiscal framework that allows for a sustainable use of the resource.
“More generally, I commended the government and the Bank of Uganda for their prudent approach to fiscal and monetary policy. Continued progress on domestic revenue mobilization will help keep government debt on a sustainable path. Uganda’s inflation targeting framework is serving the country well.
“Lastly, I was impressed by Uganda’s integrative approach to refugees by giving them access to public services and providing them with the means for being economically active. I call on the international community to continue supporting Uganda in this area.
“Finally, I would like to reiterate the IMF’s strong support for Uganda, and look forward to our continued partnership.”
