STATUS OF IMPLEMENTATION OF THE 2021-26 NRM MANIFESTO COMMITMENTS

Presented by Hon. Henry Musasizi, Minister of State for Finance, Planning, and Economic Development (General Duties)

4th December 2024

The Office of the President Auditorium in Kampala played host to an illuminating presentation by Hon. Henry Musasizi on the implementation of the 2021-2026 National Resistance Movement (NRM) Manifesto. The event, part of the November 2024 Manifesto Week, served as a platform for the government to account for its achievements, explain synergies required for implementation, and highlight prevailing challenges.

Economic Resilience Amidst Challenges

Hon. Musasizi highlighted that the government has steered the economy through a turbulent period marked by the COVID-19 pandemic, high inflation, fiscal constraints, Ebola, drought, and geopolitical disruptions such as the Russia-Ukraine conflict. Despite these challenges, Uganda’s economy has demonstrated remarkable resilience, recovering robustly and charting a path of growth.

*Key economic indicators underscore this recovery:*

GDP Growth: The economy grew by 6% in FY 2023/24, compared to 5.2% in FY 2022/23, reaching a size of UGX 205 trillion (USD 55 billion).

Sectoral Growth: Services grew by 6.4%, agriculture by 4.7%, and industry by 6.0% in FY 2023/24.

Per Capita Income: GDP per capita rose to USD 1,146 from USD 1,093 in the previous fiscal year.

Inflation Control: Annual headline inflation dropped to 2.9% by October 2024 due to effective monetary policies and improved agricultural harvests.

Job Creation and Wealth Distribution

The government’s initiatives under the NRM Manifesto have focused on fostering employment and wealth creation:

Presidential Initiative on Jobs and Wealth Creation (Emyooga): Benefitted 2,237,402 Ugandans by December 2023, creating 378,640 new direct jobs in 2023 alone.

Parish Development Model (PDM): Reached 1,164,698 households with UGX 1.126 trillion in funds by May 2024.

GROW Program: Expected to directly benefit 8,000 female-owned enterprises and 280,000 female entrepreneurs, with 200,000 new jobs anticipated under the INVITE project.

Advancing Industrialization and Economic Diversification

The NRM government has made significant strides in reducing reliance on agriculture and boosting industrialization:

Sector Contributions to GDP: Services accounted for 42.8%, industry 25.2%, and agriculture 24.6% in FY 2023/24.

Manufacturing Expansion: Contributions to GDP rose from 23.9% in 2019/20 to 24.6% in FY 2023/24, with diversification into products such as ethanol and powdered milk.

Mining Growth: Contributions to GDP doubled from 1.1% in 2016/17 to 2.3% in 2020/21, supported by online mineral licensing and the training of 13,000 artisanal miners.

To ensure sustained economic growth, the government has outlined a strategy to grow the economy ten-fold, targeting USD 500 billion by 2040. This strategy focuses on Agro-Industrialization, Tourism, Minerals Development, and Science, Technology, and Innovation (ATMS).

Shifting Employment Patterns

The labor force survey of 2022 revealed a structural shift in employment:

Services Sector: Now contributes 50.3% to total employment, up from 46.2% in 2020.

Agriculture Sector: Declined from 39.6% in 2020 to 36% in 2022.

Challenges and Opportunities

Despite these successes, the Minister acknowledged challenges, including rising interest rates, capital outflows, and slower export demand. However, he reiterated the government’s commitment to strengthening Uganda’s economic resilience and achieving the manifesto’s objectives.

Hon. Musasizi emphasized that the 2021-2026 NRM Manifesto remains the government’s roadmap for transforming Uganda’s economy. The positive trends in GDP growth, job creation, and economic diversification reflect the fruits of dedicated implementation efforts. While challenges persist, the government is steadfast in its mission to create wealth and jobs for all Ugandans, ensuring no one is left behind.

The event concluded with a call for collective responsibility in ensuring the success of these initiatives, underscoring the importance of peace, security, and sustainable development in Uganda’s journey towards economic transformation.