## Uganda's Recipe for Growth

_IMF Blog, July 21, 2017_

## Source details

**Canonical URL:** [Uganda's Recipe for Growth](https://www.imf.org/en/blogs/articles/2017/07/21/ugandas-recipe-for-growth)

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## Bibliographic details
- Authors: The Editors
- Published: July 21, 2017

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### Economic slowdown and causes
- After two decades of steady growth, Uganda’s economy has slowed, and life for Ugandans is not improving fast enough.
- Per capita growth fell to ½ percent from an average of 5 percent for the past 20 years.
- Contributing factors cited:
  - Drought in the Horn of Africa
  - Regional conflict
  - Slow credit growth

### Oil production and revenue estimates
- Government plans and timeline:
  - The government is planning to start oil production in 2020, and reap the benefits for almost 30 years.
- Revenue projections (IMF estimates quoted):
  - Revenues could range on an annual basis from about ½ percent GDP initially to about 4 percent at peak production.
- Governance challenge highlighted:
  - “The challenge that many oil producers face is to manage this well.” (quote)

### Public investment and infrastructure
- IMF view on public investment efficiency:
  - Focus on picking the right projects, preparing them properly, and executing them properly.
  - “By picking the right projects, making sure they are prepared the right way and executed properly, at the end of the day, infrastructure investment can give Uganda high growth.” (quote)
- Policy implication:
  - Strategic infrastructure investment can help turn the economy around if implemented efficiently.

### Revenue collection and tax administration
- Government plans:
  - The government has plans to increase revenue collection.
- IMF support:
  - The IMF has been helping the country improve its tax collection including that of international companies doing business in Uganda.
- Issue noted:
  - International companies may structure operations to shift where they pay taxes; countries need to “make sure that companies pay taxes for the activities in your country.” (quote)

### Additional items
- Multimedia and further reading:
  - A podcast featuring IMF Mission Chief for Uganda, Axel Schimmelpfennig, discusses these topics.
  - An IMF staff report provides an economic health check of Uganda.

*Source: IMF blog post "Uganda's Recipe for Growth", The Editors, July 21, 2017.*

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## References

- [https://www.imf.org/wp-content/uploads/2017/07/BLOG-PODCAST-400x275-UGANDA-Hoima-Construction-worker-measures-roofbars-on-new-hospital-James-Akena-Reuters-Newscom-rtrlseven037165.jpg](https://www.imf.org/wp-content/uploads/2017/07/BLOG-PODCAST-400x275-UGANDA-Hoima-Construction-worker-measures-roofbars-on-new-hospital-James-Akena-Reuters-Newscom-rtrlseven037165.jpg)
- [IMF staff report](http://www.imf.org/en/publications/cr/issues/2017/07/12/uganda-2017-article-iv-consultation-and-eighth-review-under-the-policy-support-instrument-45069)
- [latest economic health check of Uganda](http://www.imf.org/en/News/Articles/2017/07/18/NA071817-Ugandas-Infrastructure-Investment-Promise)

_Source: https://www.imf.org/en/blogs/articles/2017/07/21/ugandas-recipe-for-growth_