In fulfilment of the Constitutional requirement under Article 101 (1) of the Constitution of the Republic of Uganda, I am here to deliver the State of the Nation Address, 2023.
Madam Speaker, since my last Address, a number of Ugandans have departed from this earth. Some of whom are:
· The Late Gen. Elly Tumwine, former Minister of Security and Senior Presidential Advisor on Security;
· The Late Justice Rubby Opio Aweri, former Judge of the Supreme Court of Uganda;
· The Late Dr. Paul Kawanga Ssemogerere, former President of the Democratic Party;
· The late Hon. Charles Okello Engola, former State Minister for Labour and MP, Oyam North.
· The Late Hon. Bishop Patrick Okabe, former Member of Parliament, Serere County;
· The Late Keith Muhakanizi, former Permanent Secretary, Office of the Prime Minister.
· The people who have died in the landslides floods and our soldiers who died in Somalia.
Madam Speaker, I request that we all stand up and observe a moment of silence in memory of the departed persons. May the Almighty God rest their souls in eternal peace.
1. PERFORMANCE OF THE ECONOMY
Economic Growth
As a result of the NRM Government’s deliberate efforts to expand the economic base of the Country, a strong foundation has been built for rapid economic growth and socio-economic transformation. In 1986, when the NRM Government took administration of the Country, the size of our economy was equivalent to US$ 1.5 billion. Today, our economy is about US$ 49.4billion. In other words, the economy has expanded by more than 30 times since 1986.
The economic growth for this year is projected at 5.5 percent in real terms compared to 4.7 percent last financial year 2021/22. Over the next five years, the economy is projected to grow at an average of 6.5-7.0 percent per year. But these are growth rates of the Ministry of Finance but me I believe we can grow much faster. This growth will arise from:
i. Economic stability as a result of low inflation;
ii. Establishment of more manufacturing plants;
iii. Continued implementation of the PDM;
iv. Support to Small and Medium-Scale Enterprises through Emyooga SACCOs, the Youth and Women funds and other initiatives;
v. Increased Oil and Gas Sector activities; and
vi. Growth in regional trade and the positive impact of the continued recovery of economies in the Middle East, Asia, Europe and USA which provide markets for our exports.
Therefore, by the end of FY 2023/24, Uganda’s GDP is projected to grow up to UShs.207.22 trillion (equivalent to USD 55.17 billion), translating to USD 156.76billion in PPP terms. This in turn is projected to grow our GDP per capita to USD 1,186, up from USD 1,096 in FY 2022/23.
Inflation
The prices of domestic goods and services have come down compared to what they were one year ago. To take a few examples, the price of edible oil has reduced from UShs. 10,079 per litre in March, 2022 to UShs. 9,556 per litre in March, 2023; Petrol from a peak of UShs. 6,563 a litre to UShs. 5,138 a litre now, ordinary cement from a peak of UShs. 37,315 a bag of 50 kg in May, 2022 to now UShs.34,874.
Therefore, we have defeated the rapid increase in prices of both consumer and production prices. However, food prices remain high due to climate change effects that caused prolonged drought in many parts of the Country. This will be history because of the on-going Government investment in small- scale solar powered irrigation to address water shortages.
Government resisted price controls and subsidies when prices went up sharply. This is because these kinds of measures are not sustainable and they instead introduce distortions in the economy. They bring about the old habits of smuggling (magendo) and can result in shortages of goods in the markets. This happens when some rich business people hide consumer goods to cause artificial shortages in order to benefit from higher prices. Some countries gave subsidies or controlled prices of some essential commodities such as fuel, bread, wheat, etc. We do not believe in subsidizing consumption such as subsidizing petrol for people to drive to night clubs.
However, if prices are distorted by some non-economic factors such as sanctions by the West on account of the war between Russia and Ukraine, for inputs into production such as fertilizers, it may be logical to look at subsidies. We are studying this. Our policy, as Government, is to allow demand and supply forces to determine prices and incentivize production.
However on the issue of fertilizers we shall either get a solution to stop the west from interfering with the prices of the fertilizers or we subsidize.
International Trade
Export revenue of goods and services was US$ 6.0484 billion for the calendar year ending 2022, of which export of goods merchandise was worth US$ 4.272 billion. For the 12 months to February, 2023, we exported 5.7 million bags each of 50kg of coffee worth US$ 858.7 million, fish was US$ 166.9 million, beans US$132.8 million, sugar US$ 146.8 million, maize US$ 131.2 million and industrial products worth US$ 348.9 million were exported mainly to regional markets. All this has been possible because of the NRM Government’s efforts to grow and diversify the economy. Export of services was worth US$ 1.776 billion of which tourism was US$ 1.047 billion, equivalent to 59 percent of all the services export receipts. This shows the huge untapped potential in the tourism sector that Government is working, in partnership with the private sector, to harness.
Regional integration efforts and promoting intra-Africa trade, are taking root. Uganda now exports more to Africa than to the rest of the world, with 86 percent of our exports (US$3.8 billion) to Africa in the 12 months to February, 2023 and 57 percent (US$2.5 billion) to the six (6) EAC countries. What we need to intensify as Africa, is to build regional infrastructure to improve connectivity within the region and reduce trade transaction costs. This way, we shall be able to pull our populations out of poverty much faster because we shall attract more investments.
Foreign Direct Investment
Uganda’s investment climate remains competitive in the region and globally. Because of this, investors willing to bring their money and invest here, have increased. This is partly due to the stable and sound economic policies and the prevailing peace and security in the Country. Foreign Direct Investment (FDI) inflows to Uganda, continued to recover and reached US$ 945 million during the first six(6) months of this financial year 2022/23. This is, in part, due to increased financing to the Oil and Gas, as well as the Mineral Development Sectors.
Increase in Household Incomes
Although the Country has been faced with economic shocks, household businesses, have responded positively to Government investment in especially infrastructure and the various wealth creation initiatives. As a result, 60 percent of households have increased their incomes in the year ending December, 2022, compared to 43 percent whose incomes increased in the same period a year ago. This means that the Government’s effort to create wealth at household level, is taking root. This will be further enhanced by the Parish Development Model and Emyooga Government initiatives. As prices stabilised towards end of 2022 and incomes increased, access and affordability of essential goods and food products, has improved. The prices of fuel, sugar, maize flour, beans, cooking oil and eggs, have all reduced since their peak between August and December of 2022.
An Expanded and Diversified Economic Base
When the NRM Government took over in 1986, the economy depended on a few cash crops namely: coffee, cotton, tea and tobacco. Since then, the economy has become bigger and diversified. Some of the agricultural produce which were only for consumption at home such as maize, beans, matooke, fish, milk, etc., have become commercial, contributing to household incomes. Other crops that have joined the traditional cash crops include: sunflower, from which we now make edible oil, palm oil trees, vanilla, avocado, oranges and mangoes, which are raw materials for the agro-processing plants.
We now produce enough sugar (in fact we now have surplus sugar which we are exporting to our neighbours), steel products, cement, other building materials such as tiles at Kapeeka Industrial Park, mineral extraction and beneficiation, etc. We shall soon produce oil and gas and the infrastructure development to enable this is currently under construction, including the EACOP, power and water infrastructure and Kabaale International Airport. Uganda has a vibrant economy and workforce, that is transforming our economy into a digital one. There are many businesses and financial transactions taking place within the Country, using the internet and other online avenues. This is not only improving efficiency, but also creating many jobs for the youth.
Fiscal Performance
Domestic revenue in financial year 2022/23, is estimated at UShs. 25.55 trillion. This is about 13.7 percent GDP. Next financial year 2023/24, we plan to collect UShs. 29.67 trillion as domestic revenue. Through our strategy to raise revenue, the Government is planning to raise at least 18 percent of GDP in the next five years.
When we achieve this target, we shall be able to reduce our reliance on borrowing to finance a larger share of our budget. We must avoid this problem of not being able to pay our debt by increasing what we collect from taxes and other sources of domestic revenue such as loyalties from our mineral development. Some countries are paying more than 50% of their collections in taxes to service debts. We should avoid falling into this debt trap. Therefore, in addition to collecting more revenue domestically, we should also not spend what we do not have. To achieve this, Government decided to rationalize Government departments to reduce duplications and wastage of taxpayer’s money and the Ministry of Public Service is finalizing the implementation plan for this decision.
2. INDUSTRIALIZATION
Our industrialization drive is bearing fruit, with many factories being set up. We have eight Government owned industrial parks which are currently operational. These include: Kampala Industrial and Business Park at Namanve with 125 companies operational, 144 companies under the construction stage and 106 companies at the planning stage, giving a total of 375 factories or companies; Luzira with 11companies operational; Bweyogerere with 8 companies; Soroti with 2 companies operational and 5 companies at the construction stage; Tian Shan Mbale Park with 16 companies which are operational while 4 are under construction stage; Jinja with one (1) company for assembling electric buses operational; Mbarara for small scale enterprises (SMEs) for which 35 workspaces are occupied; and Kasese where one (1) company is operational and 5 are under the construction stage. Both Karamoja and Koboko Industrial parks, will soon start. In addition, we have three(3) industrial parks which are operational under a Public-Private Partnership (PPP) arrangement.
These include: Liaoshen Kapeeka with 17 companies; MMP Buikwe with 6 companies operational; and Tian Tang Mukono with 4 companies. The total capital investment within the industrial parks so far is US$ 2.93 billion and 98,263 direct jobs created with many more indirect jobs. In total, 226 factories are operating within the industrial parks while 303 factories are either under construction or the planning stage. The development of industrial parks is one of the vehicles for socio-economic transformation, with the projected creation of 2.5 million jobs in the next five years. The factories in the Industrial Parks, do not include the stand-alone- factories owned and operated by many different investors. These are factories that belong to the Mukwano and Mulwana Group, etc. These are a total of 354 factories employing an additional 101,000 people. The total number of factories in Uganda is 4,008, with a total number of employees of 150,685.
3. THE PARISH DEVELOPMENT MODEL
We are committed to creating wealth and jobs by moving households from the non-money economy to the money economy. To achieve this goal, Government launched the Parish Development Model to accelerate socio-economic transformation. Using this approach, 39% households which are currently in the non-money economy (the majority of whom are in subsistence agriculture), will move into the money economy. The Parish Development Model will increase incomes, improve quality of life and eradicate poverty at household level through modernisation of agriculture, industrialisation, improved services delivery and using modern communication technologies.
Through the Parish Development Model, agriculture will be transformed from subsistence to commercial. This approach will organize and deliver Public and Private Sector interventions for wealth creation and employment generation, using the Parish as the economic unit for planning, budgeting and service delivery. Therefore, the 10,594 Parishes in the Country, will be the growth and service delivery units in the Parish Development Model. Government has committed UShs. 1,059 Billion this financial year, for its rollout countrywide. So far, Parishes which established SACCOs have received UShs. 50 million each, benefiting 906 SACCOs and more than 21,082 individual beneficiaries. Government will deepen the implementation of the Parish Development Model (PDM), beyond the Financial Inclusion pillar by maintaining disbursement of UShs. 100 million per parish next financial year and in the subsequent years.
When I visited some parts of the country, I was told that some of the Parish Development Model money, has been given to people who are not eligible. This includes politicians and public servants. I was also informed about the delays in accessing the funds released by the Ministry of Finance to the target beneficiaries. In some cases, a few elite people come together and form SACCOS and take all the funds released for the entire Parish. The State House Anti-Corruption Unit has arrested a number of culprits in the Acholi Zone where I started my up-country inspection trips. And I’m coming to all the other zones so thieves be on alert. I have also been to Masaka and I found there some prison candidates.
The PDM programme is a successor programme to the NAADS and OWC programmes. Especially the OWC programme, starting in 2013, succeeded in bringing down the households outside the money economy from 68% to the present figure of 39%.
The OWC did not only convert 29% of the households from abakolera ekidda kyonka (tic me ic keken) to the money economy, but, as an example, increased the production of coffee from 2million 60kg bags, to now 9million and would have increased to 12 million bags, if it was not for the change to the new model of PDM, which people are still acclimatizing to. The change was, however, necessary so that the program is beneficiaries-owned and we eliminate the grumblings of begabila bbokka (the government officials only serve themselves- or favour themselves).
PDM is saying; “Do it yourself; here is a grant from the government to your parish SACCO of UShs.100million, per year. Besides, the parish is near your home. Hence, no more excuses”.
This is the strategy of PDM, the money is there, cheap and the Parish is near. Therefore no more excuses by the people who want to remain in poverty.
4. EMYOOGA
About 3 years ago, I launched a wealth and jobs creation initiative for those who found it difficult to access financing through banks and other lenders for non-agricultural enterprises. This initiative, has been successful in mobilizing the youth and women in the informal sector into productive self-employment by increasing their skills, acquiring equipment and accessing affordable capital. As of end December, 2022, seed capital amounting to UShs. 258.24 billion had been disbursed, benefitting 6714Emyooga SACCOs and covering 1,858,762 individual beneficiaries. Whatever mistakes that occur in these low interest, poor-people funding efforts, are correctable and are detectable, if you liaise with the public in your areas like I have been doing with the public barazas in my recent trips up-country.
5. AGRICULTURE
Agriculture sector, as a whole, contributed 24.1% of GDP. The sector grew by 4.4% in the FY 2021/22 as compared to 4.3% in the FY 2020/21.
The value of agricultural exports registered a growth of 24% from USD 1,678 million in FY 2020/21 to USD 2,085 million in FY 2021/22. This growth was attributed to the increased volumes and quality of coffee, dairy, fish and tea.
Performance of Selected Enterprises
Coffee:
To take some examples, the volume of coffee produced increased by 5% from 8.06 million (60 kg) bags in FY 2020/21 to 8.45 million (60 kg) bags in FY 2021/22. This is on account of government interventions such as generation and distribution of improved coffee variety seedlings, increased use of water for irrigation and promotion of use of fertilizers. The volume of exports increased from 6.08 million (60kg) in the FY 2020/21 to 6.3 million (60kg) bags in the FY 2021/22, an increase of 3%. The value realized from coffee exports increased by 58% from US$ 544M in 2020/21 to US$ 862M in 2021/22.
Dairy
The production of milk increased by 193% from 2.81 billion litres in FY 2020/21 to 5.4 billion litres in FY 2021/22. In the same period, the export value of milk and milk products, increased from USD 98.8 million in 2021 to USD 103 million in 2022. This is attributed to the compliance by the private sector to quality standards and regulations.
Beef
The production of beef increased from 228,243MT in the FY2020/21 to 230,746MT in the FY2021/22.In the year 2022, the amount of beef exported was 247,234 kg valued at UGX 2.944 trillion as compared to UGX 1.018 trillion fetched in the year 2021.
Fish
The total fish catches from all the water bodies, increased from 621,987MT valued at UGX.1.875 trillion in 2021 to 651,7192MT valued at UGX. 1.968 trillion in 2022. The availability of raw materials (fish), sustained operations of the 12 fish processing factories. The performance has been a result of government focus on gazetting of fish breeding grounds, enforcement of fisheries laws and regulations, provision of quality fingerlings and fish feed and providing an enabling environment for the private sector to invest in aquaculture.
The value of fish and fish products exported increased by 27.7% from USD 148.7 million in FY 2020/21to USD 156.4 million in the FY 2021/22.
Provision of Quality Agricultural Inputs
Government is currently implementing the Parish Development Model (PDM) to transform the livelihood of the 39% of the households still in subsistence to modern/commercial farming. The strategy under PDM is to transfer funds to parish-based SACCOS, where farmers can borrow and procure inputs such as seed and agro-chemicals, for agreed and selected enterprises.
Government will continue to ensure that farmers across the Country, access quality seed, planting and stocking material, disease and pest control, research, extension and overall policy guidance.
Pests, Vectors and Disease Control
The National Agriculture Research Organisation (NARO), is conducting research on an anti-tick vaccine development and has already launched trials. Efficacy evaluation trials, have started at Kiburara prisons farms, Isimba prisons farms, Maruzi, Nabuin and Mbarara. Government continues to facilitate research in disease resistant varieties and building capacity of farming households on the best agriculture practices, on integrated pest, vector and disease management, etc.
Mechanization and Farm Power
Mechanisation is critical to commercialisation of agriculture. In the financial year 2021/22, government procured additional two hundred and forty tractors and implements, bringing the total number of tractors procured by government to 655. Government, also procured seven hundred and forty (740units)Single Axle (Low powered-walking tractors), tractors with all accessories, to support farmers to open more farm land for cultivation. These machines, also support value addition, irrigation and transportation of produce.
6. WATER AND ENVIRONMENT
The availability of adequate water resources is critical to sustainability of the wellbeing of the society.
Water for Production
The irrigation area has increased from 19,138 hectares to 22,797 hectares. The overall cumulative storage of water for production stands at 52.48 million cubic meters. These targets have been achieved on account of the following interventions:
1) Solar Powered-Irrigation Demonstration Sites:
Government, has completed the construction of 121 solar-powered irrigation systems in the districts of Buhweju, Bushenyi, Ibaanda, Isingiro, Kabarole, Kamwengye, Kanuungu etc. As a result, 2,373 acres have been added to the area under irrigation, enabling14,961 farmers to produce cabbages, tomatoes, apples, onions, pineapples, watermelons, green pepper, etc., all year round.
2) Medium Scale Irrigation Schemes:
The following medium scale irrigation schemes have been completed:
· Ngenge (880ha);
· Rwengaaju (116ha);
· Tochi (500ha);
· Mubuku II (480ha);
· Doho II (1,000ha) and Olweny (600ha), in the Districts of Kween, Kabarole, Oyam, Kasese, Butaleja and Lira respectively.
3.Communal and Individual Valley Tanks:
Government has constructed 44 communal valley tanks in Nabilatuk, Kotido, Amudat, Kaabong, Karenga, Soroti, Butebo, etc. This has created a storage capacity of 6.6 billion litres serving 89,763 livestock. In addition, 58 valley tanks were constructed on individual farms, creating water storage capacity of 206millionlitres serving 42,858livestock.
The government’s strategy, is to increase safe water supply coverage for both rural and urban areas. The current safe water coverage in rural areas is estimated at 70%, while the urban water access is at 72%. Out of 70,512 villages, 49,102 villages have been served with, at least, a source of safe water.
To achieve the planned target to restore wetland cover back to 13%, government is implementing several interventions that include: restoration of degraded wetlands, demarcation of wetland boundaries and strengthening awareness and sensitization campaigns on conservation of wetlands as well as providing alternative livelihoods for people that have been encroaching on wetlands.
I was talking to MPs from Bukedi and Busoga when we were in Kyankwanzi they told me that our people have been growing rice in wetlands but I asked them how well are they now, they told me that the areas are among the poorest in Uganda.
So the question is, if encroachment on wetlands is so good why are people still poor?
Floods
Floods, have over the last 3 weeks, been experienced in River Katonga and River Rwizi catchment areas, resulting in destruction of infrastructure and property such as roads, bridges, people’s houses; disruptions to transportation and even death as reported around River Rwizi in Mbarara.
There has been major disruptions to transportation arising from the damage of Katonga Bridge, which was washed away by floods. The floods, also led to the eroding of wetland vegetation and gardens in the upstream parts of the catchment. This flooding was caused by a “dam breach” along the 4km stretch of the Kalungu – Gomba road, in Bugomola Village, RwabengeSubcounty, in Kalungu District. The water had progressively built up on one side of the road due to blocked culverts creating a damming effect. This created a massive force beyond the capacity of the road, creating a dam breach which led to a sudden release of a large volume of water, that moved downstream the Katonga River. As the flood wave moved downstream, it moved with a lot of papyrus and gardens, causing significant damage to infrastructure.
The interventions to address the problem of floods, involve protection of water catchments and the general environment so that they perform their function of storing and releasing the water safely even when there is increased rainfall; regular maintenance of water bodies and rivers so that they perform their water storage and conveyance function; demarcation and protection of lake shores, river banks and wetlands, to limit encroachment by settlements, construction of water storage facilities, agricultural activities and other development; and strengthening of early warning systems and enforcement of the water and environmental laws at all levels. People who damage the environment, do so at their own risk. Have we not seen enough examples? Nantabulirwa, yasabala nabwabbumba. (The one who does not listen to advice, insisted on using a clay boat and drowned in the lake). In the Book of Genesis: chapter 1, verse 9, God commanded the water to separate from the dry land. It says:
“Then God said, “Let the waters under the heavens be gathered together into one place, and let the dry land appear”; and it was so.”
All the deaths from landslides, floods, etc., come out of rebelling against God, Science and common sense. Water bodies and their (miiga-edges), are not for human settlement. They are for water conservation.
Priorities:
Government approved the Agriculture Value Chain Development Strategy(AVCDS), which recognizes that interventions under the Parish Development Model will prioritise the following:
i. Guiding farmers on enterprise selection;
ii. Ensuring adequate quantities and qualities of seed, breeding and stocking material i.e. research and breeding;
iii. Ensuring sustainable high yields through control of pests, vectors and diseases for crops and animals;
iv. Facilitating precision agriculture ( i.e. water harvesting, irrigation infrastructure and machinery);
v. Provision of farm power (land opening, cultivation machinery and assorted post-harvest and small value addition equipment);
vi. Ensuring that the materials planted, survive through ensuring adequate farmer education and extension services;
vii. Ensuring that there is proper post-harvest management to avoid pre and post-harvest losses;
viii. Supporting primary processing through provision of skills and assorted equipment to address specific value chain needs;
ix. Supporting medium to large scale, model or extensive farmers because these create effective demand (markets) for the small scale and intensive farmers.
7. TOURISM
Tourism is another area which has significant potential for the economy. We have the best tourism sites, including: our National Parks of Kidepo, Murchison Falls, Queen Elizabeth, Lake Mburo, Elgon, Rwenzori, Kibaale Forest,Bunyonyi and many game reserves across the country. Uganda’s tourism sites, rank highly in international media outlets and global tourism agencies.
Despite the global lockdown, we received about 500,000 tourists in 2021 and revenue of US$530 million. The number of tourists coming here, has recovered since the lifting of the Covid-19 lockdowns to 814,508 by December, 2022 and earned US$1,014 million in the calendar year 2022.
To harness the tourism potential further, Government is undertaking the following interventions in the tourism sector:
i. Ensuring security of the Country and tourism sites;
ii. Construction of tarmac roads from Kitgum to Kidepo (116Km), Lake Bunyonyi-Kisoro-Mgahinga (74Km), Karenga-Kapedo-Kaabong (70Km), Kisoro-Rubuguri-Muko (65Km), which are soon starting;
iii. Wildlife conservation, especially of Mgahinga, Lake Mburo, Semliki, Kibaale, Murchison, Kidepo Valley, Katonga, Toro Semliki and Queen Elizabeth;
iv. Preventing the conflict between wildlife and human activities;
v. Enhancing digital destination marketing using modern ICT (online) technologies; and
vi. Strengthening enforcement and adherence to tourism standards through a strict licensing regime for service providers in the sector.
Achievements:
I. Tourism directly employs a total of 1.55 million people in Uganda along the entire tourism value chain and contributes 6.7% of the country’s GDP;
II. In the year 2022, Uganda’s National Parks hosted 367,869 visitors surpassing the pre-COVID-19 levels of 323,861 visitors recorded in the year 2019
II. In the year 2022, Uganda’s National Parks hosted 367,869 visitors surpassing the pre-COVID-19 levels of 323,861 visitors recorded in the year 2019. 63% of these were domestic tourists;
III. The international visitor arrivals, increased to 815,000 in 2022, up from 473,000 in the year 2020, during the COVID-19 pandemic. Although there is recovery, the performance is still lower than the 1.543 million tourists recorded in 2019. Full recovery is expected in the year 2025;
IV. Leisure and Holiday visitors stayed longer (11 nights), in 2022 compared to 7.6 nights in 2019 and spent higher daily at $172 per night compared to $168 per night in 2019;
V. The wildlife populations for most animals, have increased. For example, the number of elephants increased from5,700 in 2011 to 8,000 now; while buffalos increased from about 36,953 to over 44,000, during the same period. Mountain gorillas in Bwindi-Mgahinga Conservation area, have steadily increased over time from just 200 in the 1990s to about 459 now.
8. INFRASTRUCTURE DEVELOPMENT
The total national road network now, stands at 21,020 km of roads, of which 6,229km (29.6%) is paved. Although construction of bituminous roads started more than sixty years ago, more than half of the paved network, has been constructed to bituminous standards within the last fifteen years.
Government, continues to implement 16 projects to upgrade over 892km of national roads to paved bituminous standards, while at the same time rehabilitating 300km, to restore their service life. Construction of the following roads has been completed, adding 351km to the paved network:
i. Critical oil road through the towns of Buhimba – Nalweyo – Bulamagi and Bulamagi –Igayaza – Kakumiro (93 Km);
ii. Masindi-Biiso, Hohwa–Nyairongo–Kyarusheesha-Butoole, and Kabaale-Kiziranfumbi Roads (78.5km);
iii. Rukungiri – Kihihi – Ishasha/Kanungu (97km);
iv. Kapchorwa-Suam (73km); and
v. Kitala-Gerenge (10km).
The rehabilitation works of Mityana – Mubende (86Km) and 14Km Town Roads; Olwiyo-Packwach (62.5km); and Alwii – Nebbi (33Km), are ongoing. Government is expediting the construction of the Standard Gauge Railway (SGR), starting next financial year 2023/24, starting with Malaba to Kampala. I welcome the decision of His Excellency President William Ruto of Kenya, agreeing to extend the SGR from Naivasha to Malaba. In the meantime, the rehabilitation of the Tororo to Gulu meter gauge railway (375 km) and Kampala-Malaba Meter-Gauge Railway, are underway.
As regards road transport, priority will be given to maintenance of existing road networks, especially in urban areas; continued upgrading of selected strategic roads from gravel to bituminous surface; maintenance of national, districts and community roads, by facilitating each district in the Country with a minimum of UShs. 1 billion, to upgrade and compact the dry weather murram roads, next financial year.
Infrastructure Priorities
Government, has over the years, invested heavily in infrastructure and this has helped to narrow the huge infrastructure gap we had in the 1990s. However, there are still critical gaps that Government will continue to prioritize in order to reduce the cost of doing business such as: lowering the (electricity prices) power tariffs for manufacturers and other businesses. The critical infrastructure include: the railway, development and upgrading of airports, including completion of Kabaale International Airport, which is at 91.7 completion and Entebbe International Airport, which is at 71.8 completion; development of new ports on our lakes; and completing the heavy investment in the energy infrastructure e.g. Karuma Dam and associated transmission lines. We need to build new Airports near the tourism destinations such as Kidepo, Bwiindi, Kasese, etc.
Government, will prioritize infrastructure that supports industrialization, production of oil and gas and promote tourism. These include: industrial parks, electricity power sub-stations, extending and upgrading electricity transmission lines, water for industrial use and ICT infrastructure.