Home News Finance Uganda’s Oil Production Set to Boost Economic Growth – IMF
FinanceNews

Uganda’s Oil Production Set to Boost Economic Growth – IMF

371

The International Monetary Fund (IMF) has projected that Uganda’s economy will grow by 10.8 per cent in the fiscal year 2025/2026. This forecast was driven by the expected start of crude oil production, which will help improve the country’s fiscal and current account balances.

“Growth is expected to strengthen, boosted by the start of oil production, which will make lasting improvement (to) the fiscal and current account balances,” the IMF said in its recent report.

Uganda plans to begin producing oil from its western fields after nearly two decades of delays due to infrastructure gaps and disputes with oil firms. At full capacity, the country is expected to produce 240,000 barrels of oil per day, which would boost revenues.

Uganda’s foreign exchange reserves, however, dropped from $3.7 billion in December 2023 to $3.2 billion in June 2024. The IMF urged the central bank to intervene by reducing government imports, increasing foreign exchange purchases, and allowing greater exchange rate flexibility to mitigate further decline. Generally, the Uganda’s economy is strengthening.

“Uganda has navigated the post pandemic recovery well due to sound macroeconomic policies. The economic recovery is strengthening with low inflation, favourable agricultural production, and strong industrial and services activity”, the IMF added.

 

Read More: 

U.N. Resumes Talks To Settle Libya’s Central Bank Dispute After Oil Production Halt

Mali Suspends French-language Channel TV5 Monde For 3 Months For Spreading Unverified Information

About The Author

Related Articles

Nigeria's Inflation is Not Looking Good, NBS 2024 Report Shows
FoodNews

SBM Survey Shows Worsening Food Insecurity in Nigeria and Ghana

A recent report by SBM Intelligence has shown that food insecurity is...

NewsTravel

NiMet Workers Protest Unmet Demands, Warn Nigerians: “Fly at Your Own Risk”

Operations at the Nigerian Meteorological Agency (NiMet) headquarters in Abuja were shut...

BusinessNews

Niger, UAE Firm Sign Deal to Establish Gold Refinery – Mines Minister Vows Local Processing to Benefit Citizens

Niger has signed a joint venture agreement with the Emirati company Suvarna...

FinanceNews

China to Invest $950 Million in Kenya’s Manufacturing, Agriculture and Tourism Sectors Following Ruto’s Visit

Kenyan President William Ruto has signed a $950 million agreement with China...