Invest in Early Childhood Development to Transform Uganda’s Economy
Despite the ongoing global challenges and geopolitical tensions, Uganda’s economic activity remains strong. Royal GDP grew 6.1% in fiscal 2023/2024, with a growth rate of 5.3% a year ago, according to a new World Bank report. This growth has been based on a significant contribution from the service sector, especially the tourism sector, as well as the industrial sector including manufacturing and construction.
this Uganda Economic Update 24th Edition The release today shows that Uganda’s title inflation rate has dropped significantly. In the fiscal year 2023/2024, its average dropped to 3.2% from 8.8% in the previous fiscal year, maintaining below the central bank’s target of 5%. The decline is due to the decline of some global economic shocks, including a sharp drop in global food and energy prices. This is further supported by tensions in monetary policies, as well as ongoing fiscal consolidation and a stable foreign exchange rate regime. This trend places Uganda among the lowest inflation rates in the past fiscal year.
Economic updates predict GDP will grow moderately to 6.2% in the 2024/2025 fiscal year. If oil production starts as planned and reaches a peak output of 230,000 barrels per day, growth will be significantly improved in the medium term. However, potential delays in oil production pose serious risks to this prospect. Inflation may still be close to central bank targets, but is susceptible to commodity price fluctuations, weather conditions and exchange rate depreciation. Additionally, public debt is expected to increase slightly to 52% of GDP as the country travels to the polls in early 2026.
“So it remains important to increase efforts to raise more revenue at home as it will enhance Uganda’s capacity to spend on priority infrastructure in the social sector, such as transportation and energy,” he said. Saadia Refaqat, senior economist at the World Bank and lead author of Uganda’s economic renewal. “The government can effectively manage tax exemptions and increase the efficiency of the tax system; provide capacity-building programs for small businesses and establish a taxpayer education department at the Uganda Taxation Bureau to enhance public understanding of tax policies; and increase enforcement to ensure digital companies Comply with VAT requirements.”
More money and prudent spending will allow the government office to spend more human capital in areas such as early childhood development (ECD) (enables people to improve people’s knowledge, skills and physical health). Quality human capital improves educational outcomes, improves health and improves productivity. The 24th edition of Uganda’s economic update focuses on the key role of public and private investment in the ECD, as this is crucial to leveraging Uganda’s population dividend through its young population.
“By investing in early childhood development, a country can ensure that children can access the basic nutrition, health care and education that healthy, skilled and productive adults need.” Mukami Kariuki, country manager of the World Bank of Uganda, said. These people can then enter the workforce ready to increase productivity, promote innovation and accelerate economic growth. The World Bank supports Uganda’s efforts to transform its young people into valuable economic assets by investing in today’s future productivity. ”
Therefore, economic renewal has identified four key ECD investment priorities in the short term: 1) expanding primary health care facilities and community hospitals in underserved areas of the country; 2) introducing through public education in accordance with new early childhood care and education policies One year of quality, publicly financed preschool education; 3) Develop affordable parenting models that prioritize women in the informal sector, especially those under the age of three; 4) Expand promising parenting support plan.
Distributed by Apo Group on behalf of the World Bank Group.
